As the year comes to an end you may be thinking of your 2018 financial resolutions. But hold on, it is not time yet. Before the year ends, there is some work to do to ensure that your 2017 resolutions and financials are on track.
What do you have pending? Cleaning up your finances may seem like impossible when just a few weeks are left in the year. But here are a few ways to ensure that you get on track before ringing in the new year.
Follow these three ways:
Review your debt
Check out your credit card debt as well as any other debts like personal loans, auto loans, home equity loans, etc. Are you up to date on your payments? If the answer is yes, you can proceed with your planning. If not, you need to decide what you will do about your debt. Credit card debt can be transferred to a new credit card that gives you a grace period with no interest for several months.
Other debts – combined with credit cards – can also be consolidated and repaid over a longer term. Refinancing a loan to reduce its monthly payment can help you get back on track. So visit your bank, and discuss how you proceed with payments that fit within your budget. Of course, if you owe money to family or friends, that debt must be settled first.
Review your tax obligations
If you live in the UAE, you don’t have to pay income tax. But you might be required to pay taxes in your home country if you’re an expatriate. Check out the regulations and make sure that you’re setting the amount of taxes aside.
In addition, you must know how you will get your taxes filed and get a sense of the amount that you might end up paying. You might need an accountant to help you out. This is an additional cost that could be worthwhile if you’re unfamiliar with the process. Knowing the amount of taxes that owe for 2017 can also plan ahead for the next year.
Review your resolutions
Remember the excitement that triggered some financial resolutions last January. Summon this excitement now to review your resolutions. If you have accomplished some, like buying a house, saving consistently, or getting out of debt, celebrate your success.
If your resolutions have fallen through along the way, think of the reasons. It could be they were unrealistic in the first place. Instead of just carrying over your resolutions from one year to another, consider more realistic, and smaller steps that you can take toward financial well-being.
And this is certainly the time to get on completing an achievable goal that you have set for yourself, if you haven’t. Donate more to charity? You have got nearly three weeks to get this done. So don’t procrastinate.
Review your budget
Before you judge into celebrating the new year and setting new goals, have a clear picture of where you’re financially. Your budget should be a living document. Review it to make sure that it reflects reality and to find out your potential spots for savings and investments.
This review process also could help you pinpoint areas of increased spending. You can find for example that you have developed a habit or two that are draining money. Or you could find that an increase in your income is not helping because of how you have stretched your spending to fit your income.
Come up with a review of your budget, and take time to shop around some of your regular expenses, like insurance, television and internet packages, etc. By doing so you might be able to come up with disposable income that an be channeled into any new year resolution.
The writer, a former Gulf News Business Features Editor, is a Seattle-based editor.
End this year right
Sort out your debts
Know your tax obligations
Finalise your 2017 resolutions
Refresh your budget
—R.O.