As the year comes to an end, many people begin to think about how their December bonus will fund their plans for Christmas holiday. Do you know how to spend your bonus wisely? Do you see this as a healthy financial planning opportunity or do you just splurge it away?
Please consider these few tips on how to spend your Christmas bonus wisely:
- Debt Payment – Consider a portion of your Christmas bonus as a payment to your debts. While it is advisable to pay for your debts as soon as you can, don't put your entire bonus to debt payment. Have something left for you to enjoy. Be realistic. You’ll somehow feel depressed if you can’t buy even a single gift for yourself this holiday season.
- Form an Emergency Fund: Form an emergency fund if you do not have one. An emergency fund is generally five to six months of your expenses parked in liquid avenues that you can encash easily in case of an emergency.
- Invest: The investment you make could be towards saving money for your retirement or saving money for your children's education among others. You can start investing to your chosen unit investment trust fund which is available on different banks or consider having a home business.
- Insure your assets: Another option should be to look at the need to enhance your life insurance. Start by insuring your life first. There are many types of life insurance policies available in the market so don't get confused by them. The number of policies each individual needs is different, so make sure you make a personal decision to spend your bonus wisely.
- Share your Blessings: Christmas season is the season of sharing. Aside from giving gifts to your families, friends and Godchildren, why not also donate a portion of your Christmas bonus to charity. Share something to your favorite charitable institution or to your nearest church.
- Try to live normal: Try to live normally during the festive season rather than making dramatic changes to your spending patterns. If you have to borrow money, make sure it is for necessities only and ask for a pre-agreement statement and quotation beforehand.
So before spending your Christmas bonus, decide on better things that you can do with it. Don’t let your bonus disappear in just a blink of an eye. Have a merry Christmas!
How to Spend your Hard Earned Money Wisely
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