Thursday, September 29, 2016

[Guest Post] 3 Smart Ways to Spend Your Bonus

Expecting your bonus soon? 

Don't spend it all in one time! Here's how you can spend it wisely.

(This is a guest post from one of my friends from Money Max PH. MoneyMax is the Philippines’ foremost online platform for comparing financial and telecom products and services – fast, comprehensive, and free. Find out more about them hereThanks for sharing, friends!) 


In the usual workplace environment, talking about bonuses is common. You’re probably feeling more hardworking than usual before your performance evaluation. 

A stellar performance review can mean a promotion, a raise, or a bonus. 

If you find yourself getting a bonus or a sudden increase in money, here are 3 smart ways to spend your bonus: 

Photo credits: 401kcalculator.org
Spend for your past 

Have you incurred debt in the past that you have had difficulty paying down? 

Do you feel deflated with seeing the accruing interest charges and feeling like you can’t do anything about it? 

Using your bonus to pay down debt is a great use of the extra money. You can pay your debts down and pay more than the minimum amount required. 

Having zero debt allows you to move forward and think of the future. 


Spend for your present 

What fun is a bonus if you don’t spend a part of it? 

Allocating half of your bonus to your savings and half to your wants is one smart way to spend the extra money. 




If you’re not used to saving half of your income or bonus, you can take baby steps and set a small percentage instead. 

Start increasing the percentage you save once you get used to saving any extra money that comes your way. 


Spend for your future 

Spending for the future means using your bonus for items and services you expect to spend years (or decades) down the road. This will be your expenses during retirement, your future child’s education, or your dream house

So how do you spend for these things? 

Even better, instead of putting the money in low-yield deposit accounts with only a 0.25% interest rate, put it instead in investment vehicles, such as stocks, UITFs, and mutual funds among others. 


Investing allows you to grow your money at a faster rate; however, it’s important to note that investments are not guaranteed. When you’re spending aka investing for the future, this means you don’t expect to use the money anytime soon. 

Leaving your investments untouched for numerous years minimizes your risk significantly and will give you a return on your investments. 

Bonuses are windfalls that needs to be managed and used advantageously. 

Aside from debt payments, using a part of your bonus to treat yourself and invest is a responsible use of the extra money. This will make you happy and financially responsible at the same time. 

-----

Comment below. Where are you planning to spend your bonus? :) 

-----

You worked hard for this money - shouldn't your money do the same for you? 

Protect your family AND invest for the future with Sun Maxilink Prime.