With the year ahead of us, it is an opportune time to review our financial health, ensure that we are on track to achieve our goals and make necessary adjustments.
Buoyed by a booming economy, many are looking forward to a round of hefty salary increments and year-end bonuses.
Some of you might be on the receiving end of a handsome windfall, thanks to the unexpected collective sale fever that gripped Singapore last year. There were about 27 collective sales with a total transactional value of more than $8 billion, up from $1 billion in 2016.
Financial experts say it is prudent to resist the tantalising temptation to splurge it all. Before you rush out to make a down payment on a new car or buy that two-carat diamond ring, think about how you can use this extra cash for even greater long-term gains and financial security.
“Take the opportunity to do a complete portfolio review and this should include your assets, investments, your loans and insurance policies. Apportion your bonus based on your needs for loan repayment, insurance, investment, and cash holdings which include funds for emergencies,” says Mr Brandon Lam, Singapore head of financial planning group at DBS Bank.
Review your priorities such as much-needed home renovations, family holidays or festivities. Also remember to top your Supplementary Retirement Scheme (SRS) account for tax savings, Mr Lam adds.
The Sunday Times highlights 12 financial tips for 2018.