Clean Up Your Finances for the Year of the Dog

Prepare to start the Year of the Dog a great year by setting financial goals. Before reviewing your cash flow for the year, set goals to keep you motivated throughout the year. Think of anything you can do to increase your income, or come up with specific ways to decrease your expenses.

An important Chinese New Year tradition is to pay all your debts so that you start the year fresh. While it's not always easy to pay off debt, you can at least honor the tradition by committing to a payment plan to lessen the money you owe.

If debt is less of an issue for you, set goals that will help you increase your assets. You can build up your cash reserves by saving more each month, put money towards buying vul investments, or put funds aside to future-proof your family.

Eating fish, wearing red and wearing polka dots are all traditional ways of bringing health and good fortune during Chinese New Year. But even before the festivities begin, secure your financial wellness for this year and beyond by making Life Ready Plus, part of the BPI AIA health and wellness programs, an integral part of your financial plan.

You can enjoy an upfront 20% additional life coverage and supplementary benefits by making healthy choices with the AIA Vitality program. Boost Vitality Status and get to receive up to 50% additional coverage on the succeeding years. Plus, avail of discounts from a range of partners as a reward for living healthy.

To find out how you can take the first step in living longer, healthier, and better, read more about the BPI AIA health and wellness programs here.

The next step is to know where you stand today. You can get a clear picture of your finances by taking inventory of your assets and liabilities, and then determining your income and expenses for the year.

To make a list of your assets, start with the simple question: What do I own? Think of anything that can fall under one of these groups and write it down: cash equivalents (cash in bank accounts or the cash surrender value of any insurance plans), investment assets (stocks, bonds, business equity or real estate purchased for investment purposes) and personal use assets (personal items that can be sold for a significant amount of money like cars, your home, furniture or jewelry). Assign a cash value to each item on your list and add the numbers up.

To make a list of your liabilities, write down everything you owe money on, such as bank loans, installment payments, mortgages or credit card debt. Total up your liabilities and subtract them from your total assets to get an estimate of your net worth.

Knowing your net worth is a great starting point, and from there you can project where you will end up financially this year by estimating your income and expenses. Total up all the income you expect to make this year by listing all money you are sure to earn, such as your salary after taxes and fixed interest on investments. To be on the safe side, don’t include any income that is not guaranteed, such as bonuses at work.

Then, add up all your projected expenses by figuring out your monthly expenses the year before, and add in payments and purchases you expect to make this year, such as tuition fees or plane tickets for a planned vacation.

Once you have subtracted your projected expenses from your projected income, you will have your cash flow for the year. Will you increase your assets and add to your net worth? Or will you decrease it because your expected expenses are greater than your expected income?

Let BPI AIA and AIA Vitality help you boost your financial health! Visit a BPI branch near you and talk to a Bancassurance Sales Executive.