Here’s my recommended check-list of must-do items for the New Year:

1. Check your balance
December has always been a month of shopping and pampering of oneself or their loved ones as it’s a season of giving for those celebrating Christmas. Also, we need a great deal of self-discipline as year end sale signage is always an eyeball away.
Consequently, January is considered to be a crucial financial month as we receive credit card statements posted at our mailbox. My advise is to pay them off completely and don’t even consider to just pay the minimum due. This will indefinitely sets you up for a better financial position in months ahead.
Hence, it will not only avoid the high interest charges but a deliberate action to be in control over your money and not being a subordinate to it. That sense of accomplishment and control will have incredible effect throughout your personal financial life.
So, if the interest rate on your credit card is higher than what you earn in the savings account, tap the savings.
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2. Don’t underestimate the fixed deposits
Most people talk more on the stock market, but very rarely anyone boast about their great bank savings rate.
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I do hope all of you have several savings accounts i.e. fixed deposits or pure savings accounts. Please be aware of allowing large sum of money sitting in the current account as most current account pays very minimal or no interest on your balance.
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3. Investment
For those who have extra liquidity in their fixed deposits and savings accounts, a 20% of their liquidity utilize for investment is a good kick-off.
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Consider this : A well diversified investment of say RM50,000.00, earning an approximate 5%-10% return in a year, and after 10 years of allowing it to build up and continue to grow for the next 25 years…assuming you can’t resist to ignore six-digit return.

‍4. Mortality
Is mortality an essential point to consider? Yes, if you love your family.
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Assuming you are the bread winner of the family and having dependants of young children, a spouse or old parents…you would want to ensure that they are provided for should you die prematurely.
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If you have yet to build sizeable assets, the simple solution is a term life insurance policy as it is incredibly inexpensive.
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And if you have owned some assets already, protecting your assets and loved ones should be the ultimate goal. So, a well written Will paves the way for your assets to be distributed according to your wishes.

‍5. Start teaching the young
If you are a parent of young children, you would indefinitely want your children to grow into a responsible adult. Take time to teach them about personal finance.

One of the best gifts you can give a child is to teach them the incredible value of living within your means. You wouldn’t want to let your kids end up running huge credit card debts as they are probably unaware of the consequences and keep running to Daddy and Mommy to settle their screwed-up approach to money that might eventually leaves them deep in debt and deeply depressed.

Disclaimer : This finance article are provided for personal finance and investment information and are not to be construed as investment advise. Under no circumstances does the information of this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article are the author’s own.