Next, it’s important to keep stock of your liabilities, to know where your primary commitments lie. Most liabilities young people tend to have are debts, which may include PTPTN student loans, hire purchase/car loan, mortgage, credit card debts and other outstanding debts. Keeping track of the payment frequency is one of the most crucial things to take note of while doing a financial health check, as most debts or liabilities will incur interest if you miss your payments. The interest may seem small at first, but remember it is compounding and it will snowball its way up if not kept in check.
If you have been a good payment master, paying each bill on time, this should be an easy thing to do. If you have not been paying on time, this is how you can start: Make a list of each debt/bill/loan and the amount owed, together with the minimum payment or instalment, the due date or date of the next payment and the interest on late payment. This gives you a bird’s eye view on which you should tackle first, by the due date and by the interest rate. Then, prioritise which payment you need to focus on paying off each month. This helps you to better allocate your resources for the coming year.