The beautiful time of the year is approaching - the season of giving is here! Before you splurge on your year-end holiday, Christmas giftings, and parties hosting; time to stock take your portfolio! Few areas to stock take your portfolio:
With the recent hike in cost of living, your monthly expenses may have gone up significantly. It’s important to cut off unnecessary expenses to improve your cash flow. Start trimming your unnecessary subscriptions and budget your shopping fund each month. Money that you save from unnecessary spending can go into building your wealth for your future retirement.
Are you incurring additional debt to provide for your monthly expenses?
Are you leveraging aggressively to invest either in equities or property?
It’s essential to be prudent in your cashflow as uncertainties may hit and affect your finances.
Warren Buffet puts it well, if you don’t find ways to make money while you are asleep, you will work until you die.
Question, is your money working harder than you?
Start building capital for passive income if you haven’t done so. Calculate the amount of passive income your need to sustain your lifestyle and work backwards to determine the amount of capital you need.
Death is certainty of life.
If you haven’t done your will, this is time for you to do so. List down your asset, and start planning for how you want to distribute your asset. If you are parents with young children, you may want to calculate practically how much your children will need until they reached independent age to earn living for themselves. Consider various structure such as Trust, Will, LPA and AMD.
Speak to your financial services consultant. Reviewing your portfolio is important so that you know you are in right direction.
