The Lunar New Year begins on 12 February, as we usher in the year of the Ox. Ancient Lunar New Year traditions are believed to encourage health, wealth and prosperity, so why not create your own good fortune with our guide to help you get your finances in order?

Have a financial spring-clean

Part of the traditional preparations for Lunar New Year includes cleaning the house—making room for good fortune and letting go of the past. It’s an ideal time for a financial clean-up. Start with your budget and create a solid foundation for building wealth this year.

A budget records the money you have coming in to your pocket (income) and the money you plan to spend (expenses). Think of it as a map of your personal financial situation.  Remember that a budget isn’t just a way to keep track of your own spending habits. A good budget will also outline your personal financial goals and what steps you need to take to achieve them.

Build your wealth

The third day of the Lunar New Year is considered a good day to visit the temple of the God of Wealth and have one’s future told. Instead, you could make your own luck by planning ahead for the future and tucking some money away in a rainy day or emergency fund. Your emergency fund is just that – a safety net. It’s not a chunk of money for planned everyday expenses or a holiday you want to take (that’s what your savings account is for), so you shouldn’t touch it until you need it.

Think about reducing your debt

Just like an ox is known for working hard on the field, sowing the seeds of wealth often begins with paying down debt. While it may not be possible to be completely debt-free this year, set yourself a goal to work towards – perhaps you can aim to pay off a personal loan or credit card debt during 2021?

Be super wise

An old Chinese proverb says it’s wise to “dig the well before you are thirsty”. This can also be applied to your super. Making additional contributions into your super could be a great way to try to boost the amount of money you have to live off after you finish working. What’s more, the sooner you start, the greater the impact could be.

Ask an expert

Consider making plans to see your financial adviser so you’ll be financially on track to make the year of the Ox your best yet.

Happy New Year!

Source: AMP