Here're the five sensible money moves to make before the year ends

Tying up loose ends now will enable you to start 2019 on a sure footing financially

December is a good time to look back at the bygone year and plan for the coming one. Says Shilpa S Wagh, a Sebi-registered investment advisor: “It’s a good time to take stock of your money matters.” In fact, year-end is also an excellent time to make a few money moves and fix bad financial habits so that you start 2019 on a surer footing. 

Claim rewards: Over the course of the year, you may have earned rewards points when you shopped using your debit or credit card. These points lapse if they are not redeemed within a stipulated time. This is a good time to redeem these points, either for goods, cash back or even as air miles. Also, don’t forget to redeem any discount vouchers you may have. However, don’t go overboard to claim the points. Says Wagh: “It’s good to redeem rewards, but be cautious. If you have to pay extra for that, it’s alright to let go of a few points.” But, claiming debit and credit card points is simple and straightforward. Remember that by not claiming what’s rightfully yours and letting them lapse, you will lose out on your own money.

Get annual health check-up done: This is also a good time to get an annual medical check-up done. If you haven’t got it done yet, set December as the time when you will do so every year. Make it a calendar event. Says Mumbai-based certified financial planner and chartered accountant Balwant Jain: “Getting a preventive health checkup done is a good idea so that the New Year health resolutions fall in place a little early. You also get tax benefits under Section 80D of the Indian Income Tax Act-a deduction of up to Rs 5,000 for preventive healthcare checkup.”  Do save the bills from your annual health check-up and attach them while submitting your investment proofs.

Collect and update documents: Decluttering and organising items is a good idea when it comes to financial documents as well. Says Wagh: “It’s a good time to collect all your financial documents in one place and start exploring tax saving options like Section 80C a little early, rather than waiting till the end of the financial year.” Once you have collected all the documents in one place, move to check all your emails which financial institutes have sent you during the year. After filing the important documents, physical as well as soft copies, throw or trash the junk. According to financial planner Deepali Sen of Srujan Financial Advisors LLP, “Once you have collected all the documents, check if they have the latest updates and details about you. For instance, check all nominations, beneficiaries, addresses and the like. In short, update all your records annually.” You will have enough time in 2019 to take all the necessary steps to update documents. Just collect and review the documents to know what needs to be looked into in 2019. Says Sen: “Also keep an updated file for all passwords used for banking or finance-related matters.”

Close all unused financial relationships: Close all your dormant and inactive accounts. Cancel all debit and credit cards that you no longer use. In short, tie up all the loose financial ends, to be able to get a headstart in 2019.

Direct debits and auto-pays:  A single household easily has six-eight utility bills to pay each month, besides a few credit card payments. And if you miss paying a bill due to oversight, you end up with late payment fees ranging from Rs 300 to Rs 500. This December, activate a monthly auto-pay or direct debit facility with your bank. This will make your money life easy, especially for recurring bills.

Once you have done all of this, you can move to more serious financial tasks. Says Wagh:  “December is a good time to set up financial goals as well.”  In short, nudge yourself to make these sensible financial moves this December. They will help you kickstart 2019 on the right note. 

Does your portfolio need a tweak?

• Take a close look at your financial portfolio to see if your asset allocation has got skewed
• This year equity funds have given negative returns, so check if you have become underweight there
• Besides asset allocation, check your allocation to various categories as well
• Due to the correction in mid- and small-cap funds, check if you have become underweight in these categories
• If you need to exit an asset class to which you have become overweight, try to minimise the impact of exit load and taxes