In preparation for Lunar New Year, many households have the tradition of doing spring cleaning. In addition to cleaning your home this year, it is worth considering doing a spring clean for 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 on your insurance portfolio is important to ensure that there are no gaps or too much redundancies in your insurance coverage. As we progress in life, our required coverage may differ significantly. New parents may want to get their new-born adequately insured, while retirees who no longer have dependents may choose to make adjustments to their life insurance policies.
Another area to take note is regarding the overlaps in your insurance coverage. You may have multiple policies covering the same risk (e.g. death or disability). For working adults, it is also helpful to find out what are the exact benefits of the group employee insurance you’re enjoying, and factor in in that insurance coverage.
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 from a reliable source is fundMyLife, a platform that connects you to a vetted pool of trusted financial advisers.
#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 are underutilised. Each credit card has its own billing cycle and it can be difficult to monitor if you make payment using multiple credit cards. Should you miss a payment cycle, you’ll lose money to late payment fees.
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. 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.
#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 be able to identify some services that you no longer require or a more economical way to subscribe.
One example is the Spotify premium account. The usual cost for a premium account is $9.90 per month. If your entire family uses it, a family bundle may make more sense at $14.95 per month for up to five users. Singtel users can also subscribe to Spotify premium at $7.90 per month with a 12-month contract.
By looking out for these deals and enjoying group discounts, you’ll 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 thatyou 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.