The month of December has begun, and a new year is around the corner. Now is the right time to start thinking about how to organise your financial plans for the new year.
The entire month of December offers an opportunity to review your investment portfolio. At the same time, it’s important to keep an eye on your income and expenditure.
This is the moment to consider your future goals, which assets to keep or let go of, and everything else related to your finances. Here are the key rules to follow for income, expenditure, and investment planning in 2026:
1. Create realistic picture of income and expenditure
From the start of the new year, keep a record of your monthly cash flow. Identify unnecessary expenses and reduce them. This will prevent budget shortfalls.
2. Build an emergency fund
If possible, save an amount equivalent of three to six months of expenses. During times of economic uncertainty, this serves as an effective safety net and provides a sense of security.
3. Reduce debt risk
Prioritise the repayment of high-interest loans. This will reduce financial pressure and help you escape the cycle of debt more quickly. According to Bangladesh Bank data, as household debt rises, financial discipline becomes essential.
4. Ensure long-term savings and investment
You may plan to buy a flat in five years. So, choose fixed deposits, government savings certificates, or market-based investments that match your goals. Remember, achieving goals requires investing with lower risk.
5. Plan your taxes
Select savings or investment options based on National Board of Revenue (NBR) limits and exemptions. This will reduce your tax liability while increasing your savings. Tax benefits are available for certain government-approved investment channels.
6. Account for the impact of inflation
Inflation doesn’t suddenly drop, so consider recent months’ inflation trends when planning for the next year. Adjust your monthly budget accordingly. Keep your purchasing power intact by regularly updating your savings and investment plans.
7. Secure your family against risks
Have security plans like health or life insurance for family members so that savings aren’t depleted in case of unexpected financial needs.
8. Set long-term goals
Whether if it’s education, buying a home, or retirement, start saving by allocating a dedicated fund and timeline for each goal.
9. Utilise digital financial management tools
Use Mobile Financial Services (MFS) and online banking to simplify transactions, track your budget, and manage bill payments.
10. Review your plan regularly
Update your plan in line with changes in the economy, interest rates, or markets. Review it at least once a month.
