6 Tips to Financial Freedom

You still have a couple of days to get your act together, before 2007 ends. Have confidence that you can still finish the year on a high note.

1. Align Your Investment Strategy to world economic movements

Re-balance: With all the market volatility this year, take a look at your Investment Strategy and see if you need to make any changes.

If you were planning to sell a fund, consider doing so just before it declares dividends. Prices normally drop after distribution. And you can generally find out when a fund expects to make its distributions by going to the fund's Web site. But of course, if the strategy taken is long term, you might want to hold and let price appreciate.

2. Increase Savings

It is always good to save up for retirement. Most of us tend to overspend at the holidays. This year, before you go for more shopping, why not spend some time thinking about how much you can really afford to give? Money may not be the most important thing: Pleasant memories last much longer. So, get creative about how you show your appreciation to your loved ones. That requires planning! Have a Plan on how you want to spend, add a list of how you want to give, holiday decorations, travel expenses, so forth. Finance, if planned early, can maximise savings.

3. Get your Will ready.

This would really be difficult. After all, who really wants to think about death? The most difficult bit seemed to be whom you pick to be guardians for your kids or trustees for your assets. Pick the best qualified person you can trust.

4. Have an Early Plan for the Kids' Education

Plan each step carefully starting from kindergarten expenses to Primary School expenses. Have discussion with your peers especially those with kids. They can save you alot of money and may even give alot of good advices.

5. Do a Tax Projection for the year

You need to know how much to "give back" to the government. From the TV tax to Property Tax to Personal Income Tax, you need to know how much is expected of you. And you need to get this ready before the taxman issues the letter. This can also help save alot of money as too much procrastination can result in forgetting to pay... and thus getting a fine as a result. Such heartbreaks are needless. Also cerain things are tax-deductible. Things like education can be tax-deducted. So if you are undergoing further education, please fill it in the tax forms.

6. Cut Down on Expenses

Know where the bulk of your expenses go. If possible, list all monthly expenses down and then try to reduce it. For example, if you can help it, refrain from taking cab rides. Take public transportation instead.