Now that 2017 is about to end, it’s time to sit down and assess your financial standing for the entire year.
Did you have a hard time managing your finances this year?
Did you reach financial stability this year?
If you’ve been tightening your grip on your financial aspect, now is not the right time to be lax and complacent. It’s easy to bite into the temptation of holiday indulgence and overspending, yet you don’t want to face the New Year with the burden of financial debts and responsibilities.
Follow these tips below and end your 2017 on a financial high note.
Evaluate Your Financial Goals And Requirements
A lot of things can happen in a year that may affect your financial standing. Your personal circumstances may have changed so you need to evaluate your financial goals and requirements in line with your current situation.
It could really be anything. Maybe there is a baby on the way. Perhaps you decided to invest in yourself with an educational course. Life could even have sent you a curveball, leaving you looking for a new job.
No matter what your current situation is, you have to make sure that you’re still financially covered.
Know your insurance coverage by heart
It’s a sad truth, but crime rises like an angry dragon during the holiday season. Criminals also find this time of the year a festive one, a massive opportunity to loot and take things that you’ve worked hard for.
Before you get ready for that holiday getaway, make sure that all of your belongings are fully secured.
Lock everything securely and keep valuables such as cash and jewelry in a safe place.
It’s also important that you review your insurance policy and know the terms and conditions.
Ensure that your items are covered by the insurance should you have the need to remove them from your house and take them away with you.
If you are unlucky enough to fall victim to burglary, at least it won’t leave a major dent in your budget, as insurance will cover you for your losses.
Settle Your Personal Taxes
Most of us are guilty of this bad habit called procrastination. We’d like to put off things at a later time when we can do them today.
Finalizing your personal tax should not be included on your procrastination list. November 24 is the deadline for personal taxes; file yours before this date if you don’t want to face a penalty.
Depending on how much you have paid to the taxman over the year, you may just be surprised with a welcoming reply stating that you are being paid out for overpaying your tax (it’s rate, but when it happens it’s the best feeling in the world.)
Update Your Will
Nobody wants to think about death.
But death is inevitable and can hit you at unexpected times. Accidents are unfortunately impossible to avoid. You want to make sure that you don’t leave your family dangling over the precipice of financial stress when you pass away, which is why your will should be a priority.
According to the Intestate Succession Act, your children under the age of 18 can’t inherit your assets instead it will go to the government Guardian’s fund.
It’s better to be prepared and set up a will indicating who gets what. Make sure that a family member knows where a copy of your will can be located should anything happen to you.
Make The Most Out Of Your Bonus
Some companies offer thirteenth cheque or bonus. If you’re one of the lucky employees who will receive a bonus this year, make sure that you put it to good use instead of spending it on unnecessary things.
Do you have a debt that’s been climbing up with interest? Use that bonus to pay off your debt and be debt-free this new year.
It could actually be a great opportunity for you to invest in your business. Whether it’s to get some more sales or improve brand awareness. Heck, you could even improve the infrastructure of your business with purchasing and procurement management software.
Maximize Your Savings
Did you know that you can invest up to 27.5% of your taxable annual income tax-free? Examine your financial standing and see if you can make an additional contribution to your pension, retirement annuity or provident fund.
You can also check your employer’s fun to see how high your monthly contributions are. If they are low, you could invest a larger sum each month. Set up a tax-free savings account that you can use in times of emergency or unexpected expenses.
If you’re running a business and want to save on your project expenses, automate some of your tasks to deliver a faster production that does not require much human workforce.
Prepare Your Monthly Budget For 2018
Budgeting sucks. We know. It’s pretty much the last thing on Earth you want to have to sit down and do. But sadly, it’s one of those things in life that just needs to be done.
Knowing how much you earn vs how much you spend is incredibly important to help you better manage your income vs debt. This serves as a baseline to managing your money efficiently in the coming months.
Don’t worry if you slip up now, and then. It is almost impossible to follow a set-in-stone budget. But through setting restrictions, you will see that you spend a lot less then you would typically throw down the drain on useless things.