The year is halfway over, and it’s a good time to review your financial situation and goals. Whether you want to save more, invest better, or reduce debt, a midyear checkup can help you stay on track and make adjustments if needed.
Here are some steps you can take to do a midyear financial checkup if you live in Malaysia.
1. Review your budget and spending habits. Compare your income and expenses for the first six months of the year and see if you are sticking to your budget. If not, identify the areas where you can cut back or increase your income. You can use apps like Money Lover or Spendee to track your spending and create budgets.
2. Evaluate your savings and emergency fund. How much have you saved so far this year? Are you on track to meet your savings goals? Do you have enough money set aside for emergencies? Ideally, you should have at least three to six months of living expenses in a liquid account that you can access easily in case of unexpected events. You can use high-interest savings accounts like OCBC 360 or CIMB FastSaver to grow your emergency fund.
3. Assess your investments and retirement plan. How are your investments performing this year? Are they aligned with your risk tolerance and time horizon? Do you need to rebalance your portfolio or diversify your assets? Are you contributing enough to your retirement plan, such as EPF or PRS? You can use online tools like Fundsupermart or iMoney to compare different investment options and plan for your retirement.
4. Check your credit score and debt situation. What is your credit score and how has it changed since the beginning of the year? A good credit score can help you get better interest rates and terms when you borrow money or apply for credit cards. You can check your credit score for free at CTOS or RAMCI. If you have any outstanding debt, such as personal loans, car loans, or credit card balances, make a plan to pay them off as soon as possible. You can use debt repayment strategies like the snowball method or the avalanche method to reduce your debt faster.
5. Update your insurance and estate planning documents. Do you have adequate insurance coverage for yourself and your family? Do you need to update your beneficiaries, policy details, or coverage amount? You can use online platforms like PolicyStreet or GoBear to compare and buy insurance policies. Do you have a will, a trust, or a power of attorney in place? Do you need to update them or create new ones? You can use online services like WillWriter or Rockwills to draft and store your estate planning documents.
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