Year end financial spring clean

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As we transition from 2024 to 2025, with hopes for a better year and more blessings, many will be making New Year’s resolutions and many of those made will revolve around hopes of improving themselves. And while it’s all good and meaningful, we should not forget about our financial situations.

HOW ABOUT MAKING A RESOLUTION TO TAKE BETTER CARE OF YOUR FINANCES?

One of the top 10 most popular resolutions would probably be to lose weight. But very few may have the resolution to save more money in their top 10 things to do or accomplish in the New Year.

To start off your year, you can make this one of your resolutions for 2025. And this can be easily achieved as well. If you do not already have a basic savings plan in place, then go to your bank and set up a standing instruction that will deduct BND50 a month from your salary into a different account that you should not touch.

At the end of the year you would have saved BND600. These savings can be the beginning of your emergency or even retirement fund.

If you already have a good savings plan in place, build on your savings by speaking with your bank about how you can better maximise on your investments for the year and try some new options that will make your money work harder for you. Or you can resolve to try a new banking investment product this year that you have not tried before. This ensures that you continually build and grow on your savings and investments.

PHOTO: ENVATO
PHOTO: ENVATO
PHOTO: ENVATO
PHOTO: ENVATO

REVIEW, REVIEW AND REVIEW

With the holidays coming, some people may be taking advantage of the break to do some spring cleaning, clearing out old items and de-cluttering around the house.

The year end is a great time to also spring clean your finances. Take advantage of the holiday break to go through your finances and review your financial standings. If you’re not sure where to start, here are some questions that could help you get started.

• How much savings have you accumulated this year?

• How much have you made on investments?

• How much outstanding bills or debt do you currently have and has this increased or decreased?

• Is your insurance coverage still relevant or do you need to change this to reflect your change in status?

• What yearly taxes and insurances do you need to provision for in the new year, ie car tax and insurance, house insurance, land taxes, etc?

• What do your retirement savings funds look like? Are they at a healthy level or do they still need work?

Once you get started on these questions, you will realise that there is always one or two areas of your financial standings that could do with some improvement or revision.

SETTING YOUR PLANS FOR 2025

Now that you’ve done your review of what 2024 was for you, give yourself some credit for how far you have come. Acknowledge and congratulate yourself on your achievements.

Think about how you could have done better on the areas where you fell short and then move on.

The important thing here is to move forward and to do it in a positive manner and with some determination. Set your goals for 2025 and be realistic about it. With goals and targets that you set for yourself, always give yourself a deadline and ensure that whatever you have set for yourself is not only achievable but is set a little higher on the bar so that you will challenge yourself with some stretch. Not sure where to start? Here are some ideas that you can use for your New Year plans.

• Start a savings plan that will contribute towards your retirement. This plan to be set in place by March 2025 and to be reviewed again in December 2025.

• Make an appointment with the bank to review investments and discuss different investment options by February 2025.

• Learn about and try one new investment product by June 2025.

• Pay off and clear at least one outstanding credit card bill by November 2025.

• Review insurance plans by end January 2025 and speak with your bank on insurance needs and plans that need to be adjusted.

HAPPY NEW YEAR!

Wish yourself a happy and blessed new year to come and stick with your resolutions. Keeping the end result of your resolutions in mind will motivate you to stick with them.

This article is for general information purposes only and while the information in it is believed to be reliable, it has not been independently verified by us. You are advised to exercise your own independent judgement with the contents in this article. – Standard Chartered Bank