Financial Wellness Best Practices

Here are some best practices to reduce financial stress in your life:

  • Annual financial check-up is a must. Most people do an annual medical check-up for their body. Why not do a check-up for your financial life? Audit your assets and liabilities against your life’s vision and plan. Get holistic, unbiased financial advice from a financial professional if you are serious about this
  • Have an emergency fund to tie you over the unexpected rainy days such as the global Covid-19 pandemic. This fund should be at least six months of your regular income.
  • If you have debt, reduce the high interest ones first. The impact of high interest compounded over a period of time? It is like running on a debt treadmill – you get the picture
  • Increase your retirement savings through forced savings throughout your productive working life and let compound interest works in your favour
  • Invest time and resources in tax planning – it will save you money. Tax avoidance is widely practised by those who are rich. It is different from tax evasion, which is a crime.
  • Review your spending plan regularly – always aim to reduce your CAPEX and OPEX and it is important to know where your money goes. Do value for money analysis
  • File your receipts and scrutinise your bills – you will be surprised by the high money outflow and you thought you were in control

About Edugo