2010 is coming to an end soon and we will be welcoming 2011 in around 11 days time! And before the year ends, this is a good time for you and I to look into our Financial Planning.
What Are The Areas That We Can Look Into?
In simple terms with regards to Financial Planning, as long as it involve some form of monetary sense, it’s always good to look into. And if you like to know something concrete, here’s a list of what you can start looking into:
>> Your Financial Investments
Financial Investments would include your Investment-Linked Plans, Stocks, Shares, Unit Trusts. This can also include your investment properties (though not much changes can be done in the physical area). And basically, you will need to know with the past and present economical changes, how has it impacted your investment portfolio?
You may ask yourself these questions:
– What Am I Doing These Investments For? Retirement? Mid-Term Wealth Accumulation? On Impulse? Answers to these will help you to keep track of your final objectives.
– How Are My Funds Performing? As compared to end 2009 and now end 2010, how’s the performance been? Any changes needed to make sure that I am on track to my objectives?
– Do I Need To Pay Particular Attention To Any Investments? This will better prepare yourself for 2011, keeping track of funds that need your most attention will make sure you will not face any last minute economical shock.
>> Review Insurance Portfolio
If you have any changes in your lifestyle (e.g. got promoted, got married, got a new house), your Financial Situations (e.g. new loans, cleared loans, higher or lower income) or your Health. This will be a good time to look into your current insurance coverage.
Why is it necessary? A few scenarios to consider:
– If you are enjoying a higher pay or that you just got married? Your lifestyle may just changed which requires higher maintenance. And if you like your present situation and would not like to change, then looking into your insurance portfolio will make sure that you are well-prepared for any unforeseen circumstances without having to change much of your lifestyle.
– A new loan or cleared loan? If you get a new loan, you will want to make sure this is covered with insurance as well to better prepare yourself. A cleared loan will make good sense as you may not need so much of coverage now. The premiums saved can be used on other areas.
– Your Health? Do you know that at times you are your own doctor and that you do not need to go and see a doctor to confirm your health status. And if 2010 has been a year where you face a slight change in health, without any doctor’s confirmation and you believe in insurance, do what is necessary! Because once a Doctor confirms that you have any health issues, chances of you getting higher coverage or any insurance plans will be slim! Just think of the extra premiums, loadings or exclusions!
>> Financial Education
With so many information available online, as well as, seminars on Financial Planning being conducted on regular basis, this would be a good time to educate yourself. You may not need to do the planning on your own, but at least you know what is going on when there’s planning to be done. This can lessen most of the misunderstandings.
You can also go for stock courses like those on Technical Analysis, which will help you to choose better shares in 2011. In this manner, you will better appreciate why most people are willing to invest out from their spare money.
>> Consolidating Debts
If you have debts or loans because of owning a few credit cards, this is a good time to consolidate them under one that’s with better credit terms (better repayment features or lower interest rate).
Reason to consolidate? To get out of them soon and yet paying as little interests as possible!
>> Increasing Your Budget
Having a budget is not a reason that you have more to spend. To have a budget is that you have more to save. So how do you know you need to increase your budget? Look at your Bank Account(s), are the figures more than what you have seen in end 2009?
If yes, you are doing a good job. Now you can look into your Investment Account(s), and see if you can channel a bit more into that account to make sure your money grows!
If no, you need to do something for 2011. Keep track of your daily expenses or your monthly bank account statement. Either or, your daily expenses have to be decreased and your bank account has to increase!
Have A Good 2011
By doing some or all the above, you will be better financially planning for yourself. As you know, with the new year, it does not mean a change of desktop calendar, it means you are one year closer or have one year lesser to reach what you want in your life – good retirement or saving for that car or property!
If you have never done any of the above before, this is a good year to start! Never too late! It’s only late when you reach your final destination but you have to tell yourself you have never done anything before!
Have A Good 2011!
