In preparation for Lunar New Year, many individuals take part in the tradition of doing spring cleaning. Apart from just sprucing up your home, it can be worth considering a spring cleaning of your financial life as well.
To help get you started, here are 4 financial spring cleaning goals to help you keep yourself in the pink of financial health for rest of the year.
#1 Review Your Insurance Coverage
A yearly review of your insurance policies is important to ensure that there are no gaps or redundancies in your insurance coverage. As we progress to different milestones in life, our insurance coverage requirements will likely evolve.
Newlyweds will be in the market for a new home – and home insurance and life insurance. New parents need to consider increasing their life insurance to protect their children until they are financially independent. Medical insurance for children is also important. Meanwhile, retirees who no longer have dependents or many financial obligations can choose to scale back their life insurance policies.
During this review, you should also look at potential overlaps in your insurance coverage. You may be paying for multiple policies covering the same risk (e.g. death or disability). For working adults, it may be helpful to find out the exact benefits of your group employee insurance. You can also find out about new policies in the market that is better than your existing insurance policies, either for more comprehensive coverage or lower premiums.
When in doubt, arrange a review session with your insurance agent. If you are introduced to a new policy, take your time to digest the information and only purchase one that fits your current life stage. Don’t be afraid to approach another trusted agent if you need a second opinion. One way to get a second opinion is via MoneyOwl’s Comprehensive Financial Planning (CFP) which costs $99. Advisors on MoneyOwl’s payroll are full-salaried, which means they are not remunerated based on the products that we buy. Moreover, MoneyOwl also offers multiple products across multiple insurers, removing the need to check-in with multiple agents representing different insurance companies.
From now till 31 January 2022, you can sign-up for a free Comprehensive Financial Report by MoneyOwl (and also get a free $5 Grab voucher). Simply use our promo code: DNS422. You can also arrange for a consultation with their dedicated Client Adviser for $49. This promo is limited to first 100 eligible sign ups and new MoneyOwl customers only. Terms and conditions apply.
Read Also: Why We Should Review Our Personal Finances At Least Once? (I Paid $99 But You Don’t Have To)
#2 Cancel Under-utilised Credit Cards
If you find yourself holding on to too many credit cards, take some time to review your credit card spending and cancel those that you are not using very often. This will declutter your wallet and give your less tension having to keep track of multiple billing cycles of different credit cards. Should you miss a payment cycle, you’ll be charged late payment fees and interest on your outstanding amount.
Most credit cards also charge annual fees. By holding on to under-utilised credit cards, you may end up paying annual fees for cards that you are not using regularly and getting the full benefits out of. Furthermore, if your spending on these credit cards for the year is not substantial, it may also be harder to qualify for credit card fee waivers on multiple credit cards. You may be better off concentrating your spending on fewer cards to qualify for the fee waivers.
#3 Review Your Subscriptions
Subscriptions often go under the radar as the amount you pay every month may seem affordable. By reviewing all your subscription plans, you may identify certain services that you no longer require or even find a more economical way to subscribe.
For working adults headed back into the office, you may be able to read your newspapers in the office rather than continue paying for a personal edition.
One example of finding a more affordable subscription is the Spotify premium account. The usual cost for a premium account is $9.90 per month. Couples can sign up for a $12.98 Duo account, while a Family bundle may also make more sense at $16.98 per month for up to six users. Singtel users can also subscribe to Spotify premium at $8.90 per month with a 12-month contract.
By looking out for better deals and enjoying group discounts, you can enjoy the same services for less money.
#4 Bundle Mobile Phone Plans With One Telco
By bundling the post-paid mobile plans of your family members under the same telco, you can save up to 30% on your monthly bills. Singtel, StarHub and M1 offer family discounts if you bundle multiple post-paid mobile plans under the same company.
| Discount Program | Discounts | No. of Lines | Services Required |
| Singtel Circle | 10 – 30% | 1 – 5 | Mobile Plan, Fibre Broadband, Singtel TV |
| StarHub HubClub | 15 – 30% | 1 – 6 | Mobile Plan, Fibre Broadband, StarHub TV |
| M1 Multi-Service Saver | 15 – 30% | 2 – 6 | Mobile Plan, Fibre Broadband |
To qualify for the discounts, you need to sign up for the bundle services. If you are already using fibre broadband from one of the three telcos, you may want to consider switching mobile plans over to the same company. For Singtel and StarHub, you are given a discount even if you sign up only one line under the discount program.
It is possible that you can’t transfer the mobile plans yet as the contracts have not ended. In that case, you may want to mark the contract end date on your calendar as a reminder to switch over to your desired telco at the earliest possible time.
Read Also: [Cheatsheet] The Best SIM-Only Plans In Singapore
The post Financial Spring Cleaning: 4 Things To Do Before Chinese New Year To Get Your Finances In Order appeared first on DollarsAndSense.sg.
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