• Review of budget may reveal wasteful expenditure
• Start planning your taxes early to optimise reliefs & deductions
• Consider tweaking your investment portfolio if allocation of asset-class has deviated from set target
• Insurance coverage should be proportionate to wealth and needs of dependents
Importance of Financial Reflection
It’s hard to believe but we are already midway through 2017. For some, it’s that mid-point where we start reassessing our life goals, careers, and even New Year’s Resolutions to start losing weight and eat healthy.
We start scheduling multiple doctor appointments to complete a myriad of tests, experiment with the latest food fads, start working out in the gym, etc. But, what about our own personal finances and overall financial well-being?
The idea behind a financial health check-up, should not be a concept as alien as paying your own local GP a visit. But sadly, it is something most of us tend to neglect.
Is Your Budget on Track?
There is no better time than to start revisiting your monthly income and expenditure – specifically if they are on track and within what you initially budgeted for the year. If you happen to veer off course, don’t worry – you still have six more months remember?
One of the most crucial aspect of budgeting strategies is periodic monitoring & review – especially to identify why your budget missed its mark. Often, a re-evaluation of your budget may be necessary to cater to new circumstances or changes in one’s lifestyle.
Example, you would definitely need to reconstruct your budget to accommodate a new addition to the family (eg. marriage or birth), a workplace accident, or injury, etc.
The next step is devising a corrective action or control mechanism in your daily spending patterns or saving habits to steer your budget back on course.
It may also be worthwhile to drill into specifics and examine single line-items, to find out where one can cut costs and minimise wasteful expenditure.