Tip Tuesdays: Why You Should Plan Your Salary Allowances for the Next Financial Year Right Now?

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.

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