1. Review your spending habits and big-ticket purchases

A $9.90 meal is now $10.80 after tax. Singapore’s goods and services tax hike to 9 per cent this year means your daily expenses, from groceries to household goods, have increased. This calls for a health check on your finances.

Start by examining your spending behaviour this year. Did you purchase a big-ticket item or spend on new streaming subscriptions? Review the changes in your fixed expenses like bills, food, and transport. Consider how your variable expenses, like shopping, travel, and entertainment, have changed throughout the year too.

For example, if you had planned on buying a car in 2024, you would have seen the drastic fluctuations of Certificate of Entitlement prices in Singapore, from S$65,010 to $103,799 within the year. With just one factor capable of changing projected expenses so much, it’s important to know what and how much variability your budget can withstand.

If your review shows that you’ve busted your budget, try putting in place a budgeting method to help you stay on track in the new year. You could implement the 50-30-20 budget rule, which recommends that 50 per cent of your income goes to needs, 30 per cent goes to wants, and 20 per cent goes to savings.

2. Check whether your insurance covers a rainy day

But no matter how well you plan your budget, life could find a way to derail it. That’s where insurance comes in, to mitigate possible costs incurred by unforeseen changes.

Review your policies to make sure that your coverage is adequate. Do you have life insurance, which could be a source of retirement income or financial support for your dependents? Or what about health insurance, in case of illnesses and accidents? On the flip side, it also may be worth reviewing your coverage to ensure your premiums are not too high based on your life stage, budget or expenditure. A common guiding rule is not to spend more than 15 per cent of one’s salary on insurance protection.

With Medishield premiums increasing by as much as 35 per cent in the next few years, it is also an opportune time to take stock of your existing coverage, even as government support will help offset the additional premiums for most Singaporeans. 

3. Take stock of your investments

Now that you’ve factored in emergencies, it’s time to think about additional income. How did your investment portfolio do after the recent US elections? When Trump’s victory was announced, the dollar rallied and US equities soared, but did you manage to sell before the slump?

If the volatility of the stock market unnerves you and you are not sure where to start, check out Maybank Goal-Based Investment, a tool which helps you create a personalised investment plan based on your risk profile.

The year ahead may be uncertain, bringing with it new challenges. But with sound financial planning, you and your family will be able to weather any storm.