We always talk about starting the new year right, but before 2020 arrives, make it a point to be smart about how you end 2019, especially when it comes to your finances. Here are two things you need to do with your money to bring this year to a good close and start the new decade afresh.
Money-smart things you need to do before 2019 ends
Secure your retirement fund
It’s never too early to start preparing for your retirement years. Before the end of the year, put as much as you can in your retirement fund. After all, you can’t be working forever, and we’re sure you don’t want to spend your golden years worrying about whether or not you have enough funds.
Don’t know how to get started? Start by computing how much you need for your retirement fund using an annual inflation rate of 5%. Alvin Tabañag, a registered financial planner and founder and chief trainer at the financial literacy program Pinoy Smart Savers Learning Center, advises taking into consideration your current standard of living and how much you need to maintain that until the time you plan to retire. Once you have computed that amount, you can determine how much you need to set aside each month to achieve it.
Another way to build your retirement fund is to avail of a retirement savings program. One example of this is a Personal Equity and Retirement Account (PERA), a retirement contribution program you can avail through your bank, an insurance company, or other accredited administrator. According toFWD Insurance, PERA allows you to save and invest up to P100,000 a year and your returns are completely tax-free.
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Do a security check
We generally do a lot of spending during the holidays. If you use your credit card in your purchases, make sure all your credit card and other personal information are secure. Aside from keeping your information private, it can also help to regularly check your account to monitor for possible issues.
Real Simplerecommends seeing if your bank has a virtual credit card program, which can help make online purchasing more convenient for you. Finally, when ordering items online, confirm that the checkout page has a padlock or key symbol on the left of the address bar, which means it has a secure connection.
Already preparing your aguinaldo for this season? Click here for some money-saving tips when it comes to Christmas cash gifts.