To avoid last minute, hasty, and incorrect decisions.
Each April, we usually wait for our employer to send an email or notice asking us to declare the way we would like to structure our salary allowances (usually called flexible or variable benefits). We also usually procrastinate on this task till our employer sends a “last reminder” email or notice, then hastily plan out these allowances (most often copying what your colleague closest to you has done), and regret later in the year.
Instead, you can begin this activity right now. Today. You already know what your allowances were for this financial year and given the economic situation these probably will not change in the coming financial year. You also know what mistakes you made this year. Put together all these, spend some time this weekend, and plan out your salary allowances.
Don’t wait for that “last reminder” yet again.
Tip Tuesdays is my initiative to share practical personal finance tips — every Tuesday. I’d be delighted if you could share a tip or two from your own experiences. Drop a comment to submit your tip. And, as always, do spread the word if you find this useful.
Further reading:
- Tip Tuesdays: Why You Should Opt for Employees’ Provident Fund (EPF) as Part of Your Salary if Your Employer Offers the Option
- Tip Tuesdays: Why It Makes Sense to Have a Higher Basic Pay as Part of Your Salary?
- Tip Tuesdays: Why You Should File Your Income Tax Returns Every Year?
- Tip Tuesdays: File Your Income Tax Returns on Your Own this Year
- Tip Tuesdays: Why You Shouldn’t Rely on the “Bonus” Component of Your Compensation
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