Christmas is the most wonderful time of the year not only because of Christmas parties, Christmas gifts, and family reunions left and right but also because of the much anticipated 13th month pay or year-end bonus.
If you spend your bonus wisely, your money will go a long way. But it’s easier said than done because of all the holiday bazaars and sales happening everywhere. It’s simply too tempting!
Before you decide to decide to splurge and part with your hard-earned Christmas bonus, here are some of the wisest ways you can spend it.
1. Pay off your debts.
It may not be the most exciting way to spend your Christmas bonus, but it will definitely make you sleep better at night knowing that you no longer owe anyone anything.
It’s such a rewarding feeling to know that you have cleared most of your debts, if not all of them. You’re so much closer to being completely debt free, and you’re so much closer to starting fresh and keeping a better financial standing.
2. Put it in your emergency fund.
If you don’t have anything to pay for urgently or any big purchase that you have in mind, you can simply put your bonus in your emergency fund.
Instead of buying something that you don’t really need, you can put your money to better use by beefing up your emergency savings. No one knows what tomorrow will bring, so it’s best to always be prepared.
3. Open a savings account.
Maybe you are planning to go on a solo trip to somewhere exotic, or maybe you just want to upgrade your laptop or TV at home. You can open a savings account and save your bonus for your big purchases.
This is a much better and more responsible option than swiping your credit card and being in debt for the next few months or so.
RCBC’s Basic Savings Account allows you to open a savings account for just ?500. Even your children who are 21 years old and below can open a WISE Savings Account for a minimum initial deposit of just ?100.
You can also invest in RCBC Savings Banks’s Peso Money Market UITF for a minimum investment amount of ?10,000.
4. Invest in your health.
Now that you have extra money to spend, why not use it to invest in your health? You can get yourself a life insurance policy or a hospitalization plan if you still don’t have one.
You can also get a gym membership so that you will have a bigger motivation to be fit and healthy again.
5. Invest in your future and in your retirement.
It’s never too early to think about your future and the kind of life that you want to live when you’re already a senior citizen.
In fact, the earlier you start, the bigger and better your investment returns will be over time, and the more financially secure you will be in your golden years.
When you get a retirement plan while you’re still young, your premiums are also more affordable. You can easily set your retirement up without paying really high premiums on a regular basis.
6. Invest in a small business or franchise.
Your bonus can work as seed capital and help you purchase a small franchise business or even launch your own startup.
You can venture into online selling and build your own website or use existing seller platforms like Facebook or Instagram.
The good thing about selling online is that there are many ways you can market your business and your product. Everything you’ll need can be found online for free or for a minimal fee.
7. Enroll in short courses or attend trainings and seminars.
Have you always wanted to learn calligraphy, or professional makeup, or crocheting? Do you want to learn how to bake so that you can start selling your own goodies and earn extra on the side?
Now’s the best time to learn something new that will help you improve yourself business-wise or career-wise.
8. Buy meaningful gifts for yourself or your loved ones.
It’s important that you reward yourself for working so hard. However, this does not mean that you should spend everything in just one go.
Remember the 50/30/20 Budgeting Rule and spend only 50% on what you need, 30% on what you want, and 20% on what you need to put into your savings.
Enjoy your bonus and spend it on something fun and worthwhile, but don’t forget to put the bigger chunk of it in savings or investment!