This is the time of the year that a lot of people feel giddy inside. Of course, that includes me!
I can already smell
the scent of Christmas tree, feel the cold breeze and excited for family
Do you feel the same way too?
How about the
much awaited Christmas Bonus and/or 13th Month Pay? Definitely you
are more excited for this. I believe some of you already received theirs. But
how will you spend it?
Remember, it is
your reward for a year’s work so better spend it wisely!
1. Build up your emergency fund – emergencies do happen whether we
like it or not. As a rule of thumb, you should have at least 3 to 6 months
worth of monthly expenses in the bank.
But if you haven’t started setting
up fund for emergency yet, save your bonus as your emergency fund.
2. Pay off existing debts – it’s
better to start the new year without any debt. So if
you have an outstanding credit card balance or personal loans, instead of
paying for the interest amounting to 3.5% monthly or 42% per annum, better
to get rid of it by paying it all (or as much as you can).
3. Invest for your future – do you see yourself enjoying the same
lifestyle as you are now in your retirement years? Do you think the pension you will be
receiving in the future is enough? Make your money work for you!
to invest your bonus in investment vehicles that will give you higher
returns or better-than-inflation rate. Open a Mutual Funds account, invest
in Stocks, UITF or VUL (insurance with investment plan).
Ask around, read books. Do your research or let me know so I can help you.
4. Protect your greatest asset – and that is YOU! Plan ahead and
protect yourself against life’s risk by getting life insurance or
health/critical illness insurance.
Read: How much insurance you really need?
5. Set up ‘funds’ for your life goals – are there any adventures
that you want to cross off your bucket list? Where do you want to go in
summer next year? Do you have plans of taking up Master’s degree? How
about pursuing your passion by building your dream business?
milestone you want to achieve, set aside fund for
Here’s an effective way on how to do it: the jar system of saving money.
6. Share and enjoy it with your loved ones – since Christmas is the merriest season
of the year so why not treat your parents for a shopping spree, eat out
with your friends or indulge yourself with anything that will make you
Go and celebrate being hardworking this year! After all, it is your
But remember, spend it wisely.
If you have other
smart tips on how to spend it, share it by commenting below.