How to Spend Your Christmas Bonus Wisely

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Image Credit: @ibecs

Indeed, December is the busiest time of the year for Filipinos. And what comes along with all the excitement and bountiful gatherings are expenses and seemingly never-ending purchases.

Even though you may say one month worth of salary won’t go that far as a bonus, everyone seems to be rushing every now and then to buy things – Christmas decors, presents, and gifts for themselves and their families. To add delight to the special vibe of Christmas in the Philippines, all employees receive government-mandated 13th-month pay while some also get an additional Christmas bonus. More money could also mean more budgeting.

While most employees think of a shopping spree, here are our tips to a well-budgeted Christmas bonus:

1. Pay off debts.

Being debt free should be your first priority in the New Year. Start paying off interest-bearing debts first, followed by debts taken from family and friends.

2. Invest a part of your bonus.

Your Christmas bonus should be considered revenue or a profit out of your hard work. Invest at least a portion of it in instruments with long-term pay-off such bonds or mutual funds.

3. Start an emergency fund.

It doesn’t matter how much; start building your emergency savings by opening a new savings account that will grow with regular contributions. Don’t combine this with your usual account to save you from touching it.

4. Share your blessings

The true essence of Christmas is really to share from the heart – to those who need it the most.  If you don’t know any, you can reach out to a lot of organizations and foundations in the country of your choice.

5. Pay yourself.

Pay yourself for a year of hard work! If you have been saving all year round, then this is the time to reward yourself. Get yourself a makeover, a gadget, or even couple of days of alone time in a resort.

To sum up, though it’s perfectly human to enjoy the rewards of your life, try to control the expected impulses that you will regret spending for. Plan for your bonus well so you could enjoy this year’s gift for more years to come. Make it count.

The post How to Spend Your Christmas Bonus Wisely appeared first on Financial News and Advice in the Philippines.