Evaluate your financial plans

It is prudent to plot your financial roadmap for the new year, especially if there are major financial commitments on the horizon like a wedding, further studies or welcoming a new child.

With Singapore’s goods and services taxes set to be raised to 9 per cent in 2024, big-ticket purchases will have their price tags bumped up. If you have taken out a loan to fund such significant expenses, it is important to review your repayment and savings plans.

Consider the rising costs of different major expenditures – such as the high certificate of entitlement (COE) premiums for cars and housing prices, to decide when to make these purchases. Sometimes, a slight delay could make a difference. For example, the COE quota is expected to rise in the latter part of 2024, which could result in possibly lower prices.

Cover yourself adequately

Another way to start 2024 right is to check your insurance coverage. Evaluate how your needs have changed over the past year – such as if you have bought a new home or car – and make sure you have the appropriate coverage. For instance, do your policies cover your mortgage and loan payments such that your loved ones are not saddled with debt in any mishap?

You should also ensure that you are protected against unplanned and unfortunate events, and that your insurance policies have not lapsed. Coverage may also change – like the Integrated Shield Plans for cancer patients, which will now only cover cancer drugs on a government-approved list. So it is important to do a regular review to see if your existing plans still meet your needs.

Assess your investments

As life circumstances and objectives change, it is crucial that you reassess and rebalance your investment portfolio.

These could be personal developments, such as retirement or a pay raise. External events, such as sticky inflation, persistently high interest rates and the multiple geopolitical tensions in 2023, also justify careful consideration and a review of your portfolio.

For instance, many investors are de-risking their portfolios after the Israel-Hamas war by buying low-risk government bonds.

Safeguard your future

While you make adjustments and draw up a new budget for 2024, remember to invest in yourself too. But instead of buying things like clothes or good food, consider spending that money on developing your skills.

There are various SkillsFuture courses and training allowances you can tap. To stay relevant in a rapidly changing world, upskilling and reskilling will be key as we enter a post-pandemic economy.