3 Personal Finance Actions You Should Take By 31 December 2024

With just a couple of weeks to go in 2024, you may be looking forward to the festivities and celebrations. You’ve come to the exact wrong place if that’s what you had in mind, because we’re about to saddle you with 3 more things you can do for your personal finances before the end of the year.

Our promise though, is that these actions will not only leave you feeling good about your personal finances, but will also put you on firmer footing come 2025.

#1 Reduce Your Tax Bill For YA2025

The amount of personal income tax that you have to pay in Year of Assessment (YA) 2025 depends on your chargeable income in calendar year 2024. This leaves you with a few more weeks to do something about lowering it.

Firstly, you need to calculate how much personal income tax you may have to pay. For example, someone earning $6,000 a month or $72,000 a year may have to pay over $1,700 in income tax in 2025. 

You can reduce this personal income tax bill by topping up your CPF accounts and/or Supplementary Retirement Scheme (SRS) account. 

Each year, you can enjoy a dollar-for-dollar tax relief when you contribute up to $8,000 to your CPF Special Account, Retirement Account or MediSave Account. You can also get another $8,000 in tax relief for top-ups to your loved ones’ eligible CPF accounts.

You can further reduce your personal income tax bill by contributing up to $15,300 (for locals) or $35,300 (for foreigners) to your Supplementary Retirement Scheme (SRS). 

Read Also: Why You Need To Start Thinking About Tax Deductions For YA2025 Before The End Of 2024

#2 Spend Your CDC Vouchers

This year, Singapore households will also have 2 tranches of CDC Vouchers – worth up to $800 – expire on 31 December 2024. They were given to households in January ($500 worth of CDC Vouchers) and June ($300 worth of CDC Vouchers).

As you may already know, half of this CDC voucher amount can be used at the supermarket, while the other half can be used at heartland stores, including the hawker centres.

Another tranche of CDC Vouchers, worth $300, will also be disbursed in January 2025.

Given that CDC Vouchers can be used as the supermarkets and hawker centres, it can reduce key household expenses on food and groceries.

From 1 December 2024 until 31 January 2025, you can also donate your unspent CDC Vouchers 2024 (January) and CDC Vouchers 2024 (June) to a participating Institution of Public Character (IPC) of the CDC Vouchers donation campaign.

The CDC vouchers would be donated to the charity in cash value instead of vouchers. Tax deduction may be provided by respective IPC, depending on the respective IPC’s policy on issuance of tax deduction, which will be reflected in the Year of Assessment 2026.

Read Also: Step By Step Guide To Redeeming Your CDC Vouchers

#3 Make Your Dental Appointment

Besides mandatory healthcare benefits that companies provide, many employers also offer dental benefits. You should take some time in December to make the most of your dental benefits before they expire for the year.

Even if you do not have a dental issue to fix, the common advice is to see the dentist every 6 months. Moreover, you can also use your dental benefit to do a routine cleaning and polishing to keep the shine in your smile – which can be beneficial for your professional image.

The last thing you want to wait for is to have a dental issue go unnoticed for too long – especially when you already had your dental benefit to fall back on. Waiting until a real issue arises may lead to less than ideal outcomes, including more painful and costly treatments.

Read Also: Cost Guide To Common Dental Treatments At Private Clinics In Singapore

Do Not Buy In Advance Just To Enjoy A Cheaper Rate

Unlike in December 2022 and 2023, when you knew that the GST was going to be raised by 1% the following year, there is no such uncertainty today. Nevertheless, it will not stop businesses from raising prices if they need to review escalating costs they face, especially those accustomed to doing so on a yearly basis.

You should not go out of your way to pay for a purchase in advance just because you’re offered a cheaper rate this December. 

If it’s for an expense you’re unsure of, you may be better off just avoiding it entirely. On the hand, if it’s for an expense that you are already going to pay, such as for a car or for a home renovation, you may also want to hold up. Firstly, you may still end up changing your mind on the purchase. And secondly, you can invest your money in a cash management account to enjoy higher than 3% p.a. interest rates to offset some of the savings you feel you may be leaving on the table.

Read Also: Why You Should Never Prepay For Big-Ticket Items (Even If You Get Big Discounts)

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