Apart from all the Christmas prezzies you’ve been getting left, right, centre, December’s paycheck is probably the most awaited gem of the year because it spells B-O-N-U-S! Hold your horses though because this little windfall does not mean you can blow it all off on an expensive pair of shoes or a some extensive extensions on your locks.
Sure, you totally deserved it because it’s your company’s way of saying thank you for a whole year of hard work but you don’t want to wake up a month down the road wondering where all that money went.
Here’s what you should and shouldn’t do to make sure your bonus goes well spent:
Don’t go on a swiping spree starting from October onwards expecting to pay all of it off with your bonus because honey, you never know what you’re gonna get. Plus there are taxes to think about and annual payments such as your medical checkup, car insurance and road tax. Plan your expenditure after you receive your bonus so for the time being, live like this is your last paycheck.
If you have more than one bank account, plonk your bonus into the bank that you rarely access to, to keep the bonus out of sight, at least until you figure out what you plan to do with it. Otherwise it might tempt you to spend it.
Pay off your debt before you start spending more. Use your bonus to pay off any personal loans, education loans or credit card debts because those can accumulate interests with time and only result in you spending more. Start your year debt free and keep it that way.
You know that saying, save your pennies for rainy days. That’s right, it’s never too late to start saving and financial planners will tell you that if you need RM1000 a month after retirement to fund the next 20 years of your life, you would need a minimum of RM240,000 saved by then. Even so, that RM240,000 of yours may only end up being valued at RM60,000 due to inflation by the time you retire so in actual fact you ought to save up to RM1,000,000 by 60! It’s much more important for a woman to save money because in the event you leave your job to become a full time mother, it will be difficult for you in the event you lose financial support.
If you’re debt free and have saved money everyday since you started work then we urge you to take a pinch out of your hard earned bonus and have some fun! Go ahead and get yourself a massage, a nice dinner or a holiday with your other half. You never know if any of your gadgets or equipment will breakdown so having some money tucked aside will be a life-saviour when you need it.
Give some to charity and help someone else in need. From floods to tsunamis, there are people out there who need a little help rebuilding their lives and you never know when you’re going to need help yourself in the future.
With the extra money you can also start saving for your wedding, your future home or invest a small portion into a business you’re interested in. The opportunities are limitless if you put your mind to it, sure its tempting to spend but don’t give in to instant gratification only to have lifelong worry many years down the road. Congratulations on a bonus well earned by the way!
