2018 End-of-Year Financial Checklist

Pens and stack of coins with the words 2018 end-of-year financial checklist.

This post is about the 2018 end-of-year financial checklist.

It is now almost the end of 2018. Coupled with the school holiday, many of us will be taking a long break from work to spend time with loved ones.

Or perhaps just to be away from work to rejuvenate before the start of the new year.

End of year is a perfect time to take a look at your financial matter

This is also a perfect time to take a look at your financial matter.

For some of us, I know this sounds so not cool. But, it is something wise to do. After all, it just takes a few hours of your 365 days in a year.

So, in this post, I am going to make it easier for you. Because I will be sharing some of the important 2018 end-of-year financial checklists.

I will cover these 4 end-of-year financial checklists:

PRS Youth Incentive worth RM1000
Twenty Percent (20%) discount on full PTPTN study loan settlement

Geran Sepadan (GS500) worth RM500 for your eligible kids
Utilize your tax relief to the fullest

Continue reading for more details. Or you can jump to any section related to you.

Listed below are some of the important end-of-year financial checklists which you need to take action by 31 December 2018.

It does not matter whether you are a student, a working adult or a parent, these end-of-year financial checklists will help you to enjoy great savings and discounts over the long term.

1. Grab the PRS Youth Incentive worth RM1,000

On top of my list for the 2018 end-of-year financial checklist is PRS Youth Incentive.

Malaysian youth can utilize PRS Youth Incentive to grow from RM2K into RM56K*

In my earlier post, I wrote about why Malaysian youth should grab this opportunity by 31 December 2018.

I also shared how Malaysian youth can utilize the PRS Youth Incentive to grow from RM2K into RM56K*.

Recently, a check on the PPA website revealed that PRS Online Enrolment is unavailable from 24 December 2018 until 1 January 2019.

So, those interested in enrolling for PRS should contact PPA for further information.

2. Make full settlement of PTPTN study loan to enjoy a 20% discount

Then, second on my list of 2018 end-of-year financial checklists is the discount on the PTPTN study loan settlement.

In Budget 2018, the government announced that PTPTN borrowers who make full settlements will enjoy a 20% discount on PTPTN outstanding balance.

Enjoy 20% discount on PTPTN settlement by 31 December 2018

This special discount is available from 27 October 2017 until 31 December 2018.

If you plan to make a full settlement in January 2019, you will not be able to enjoy this 20% discount savings anymore.

For those PTPTN borrowers who can afford to make a full settlement, you should highly consider this offer. The discount of 20% from the PTPTN outstanding balance is quite a lot.

Take an example, let’s say you still have a balance of RM10,000 PTPTN study loan. If you settle this RM10,000 study loan by 31 December 2018, immediately you will save RM2,000.

On top of that, you can proudly announce that you’ve settled one of your debts too.

Personally, I also enjoy a 20% discount off my PTPTN balance when I settled my PTPTN study loan back in 2014.

That was when the government offer a special PTPTN discount which was valid from 10 October 2014 until 31 March 2015.

Even though the discount amount is not huge (because I almost completed my PTPTN payment schedule) but I am thankful for the discount given.

3. Grab the free Geran Sepadan worth RM500 (GS500) for your kids

Next on my 2018 end-of-year financial checklist is Geran Sepadan worth RM500 (GS500) for eligible school kids.

During Budget 2018, the government announced the RM250 million budget for 500,000 primary school children aged between 7 to 12 years old.

This incentive is under Skim Simpanan Pendidikan Nasional (SSPN).

For this incentive, parents who have deposited a minimum of RM500 in SSPN for their children aged between 7 to 12 years old or who are currently in primary school between 1 January 2018 and 31 December 2018 are eligible for the free RM500.

There is no need for parents to apply for GS500. All eligible SSPN account holder who meets the criteria will receive the RM500.

GS500 Incentive worth RM500 will be based on first come first serve basis

Since the allocation is RM250 million or 500,000 primary school children, the priority will be based on a first come first serve basis.

If you have kids between the age of 7 to 12 years old and you are an existing SSPN depositor, you just need to make a minimum contribution of RM500 from 1 January until 31 December 2018 to be eligible for the GS500 incentive.

Alternatively, if your kids are eligible but you have not registered for an SSPN account, you can register your SSPN account online (referral link).

All you need to do is to make a minimum deposit of RM500 by 31 December 2018 to be eligible for the GS500 incentive.

As an added advantage, the RM500 that you deposited into SSPN is entitled to tax relief.

Currently, the maximum tax relief given is up to RM6000 per year. This incentive is only available from 1 January 2018 until 31 December 2018.

So, take action now and grab the opportunity before the end of this year.

4. Fully utilize 2018 tax relief

Lastly, among the 2018 end-of-year financial checklist is to fully utilize 2018 tax relief.

Before the end of 2018, tax-paying Malaysian should take a good look at 2018 tax relief.

Then, from there, see how you can fully utilize the tax relief before 31 December 2018.

To make your life easier, here is a list of tax reliefs for YA 2018:

Tax relief of up to RM6,000 on net savings in SSPN accounts (extended to YA 2020)
Tax relief up to RM3,000 on PRS contributions (up to YA 2021)

Up to RM6,000 tax relief on life insurance and EPF INCLUDING not through salary deduction
Up to RM500 tax relief on complete medical examination for self, spouse or child
Tax relief up to RM2500 on lifestyle for self, spouse or child:
(i) Purchase of books journals, magazines, printed newspapers and other similar publications (except banned reading materials)
(ii) Purchase of a personal computer, smartphone or tablet
(iii) Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997 (excluding motorized two-wheel bicycles) and gym memberships
(iv) Payment of monthly bill for internet subscription

Tax relief up to RM3000 on insurance premium for education or medical benefit INCLUDING not through salary deduction
Tax relief up to RM1000 on childcare fees to registered Child Care Centre or a Kindergarten
Up to RM1000 ta relief on the purchase of breastfeeding equipment (for working women with a child aged up to 2 years old and claimable once every 2 years)

Tax relief up to RM5000 on medical expenses for parents

For complete details on the above tax relief, you may refer to the official LHDN website.

Final thoughts

Hopefully, with my 2018 end-of-year financial checklist above, you are more aware of the great deals and savings which will end by 31 December 2018.

If you are eligible for any of these great deals such as PRS Youth Incentive or GS500, take this opportunity for long-term benefits.

For those who wish to fully utilize tax relief for the assessment year 2018, do take action before the end of this year.

Let’s plan and do things ahead of the due date to be more financially ready for 2019.

*This is an illustration only. Investment involves risks. Invest at your own risk.