December is the most wonderful time of the year, isn’t it? End of year is just in sight and what better time to assess your finances and plan out some changes for the upcoming year – it’s never too early to plan your New Year’s Financial Resolution!

  1. List down your monthly fixed expenses: To get started, first check your budget and list everything you’re paying each month. If you have a detailed budget, look at these costs and ask, “Do I still have to pay this? Is this tax deductible?” These are important questions to ask yourself.
  2. Plan out how to pay off your credit card: Most credit cards and small loans (car loans, personal loans, etc.) have high interest rates and you will end up paying much more in the long run. If you have multiplpe credit card debts, or if you already have a high interest loan, it’s a good idea to focus on paying them first.
  3. Create a realistic budget: Budgeting is a good idea for anyone who is serious about saving money and using it wisely. It can be a hassle at first, but budgeting can help you organize your income and expenses and identify where you can improve.
  4. Review your insurance policies: The next thing to look for when cleaning your finances is your insurance. Do you have enough car insurance? Do you have sufficient business insurance? Has your business expanded? Do you need to increase your current health insurance coverage? You want to  review this annually
  5. Make sure your home loan still meets your current needs: Make sure your home loan still serves your current situation. As you go through life changes (job changes, children, higher income, moving) and new mortgage products come into the market, the mortgage you signed up for 5 years ago may no longer be best for you. A review with a finance broker will make sure you are still on the right product and you are not paying too much. Or, maybe you have decided to look at investing. A 30 min conversation could save you hundreds of dollars a month and make sure your loan structure and features support your plans, get you ready for your next adventure!

When you doing that New Years Resolution, aside from your fitness goals, new hobbies to explore and old habits to leave behind,  don’t forget to look after your financial health too. Keeping your finances clean all year round so you can reduce your overall expense burden and financial stress, is the best gift you will ever give your self.

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