It’s the most wonderful time of the year!
As the song lyrics go, Christmas is the time of the year for sharing and giving.
It’s also the time when most people have lots of extra money due to bonuses like their 13th-month pay and Christmas bonus.
It’s good to be generous and it’s also not bad to treat yourself once in a while but as a Financial Adviser and Financial Planner, this season is one of the most advantageous times to have extra cash to get your financial life in order.
Watch the video below where I enumerate the Five (5) Ways to Smartly Spend your Bonus:
Here are the 5 ways again:
- Pay off your debts – allocate a portion of your bonus to reduce or pay off your high-interest debts. If you have lots of debt, pay the one with the highest interest first. If your debts have the same interest rate, pay the smallest debt first so you can eliminate it from your list the soonest.
- Build up your safety fund – if you don’t have at least 3 months of your monthly expenses set aside, this is a great opportunity to have your safety fund started or completed. Your safety fund (some call it emergency fund) is where you get money for health emergencies, home and vehicle emergency repairs, and also in the unfortunate event of losing your job. This fund should always be maintained to avoid getting into unnecessary debts.
- Consider getting life insurance – always remember that you can only invest in life insurance when you don’t need it so better get one as soon as possible. A professional financial adviser can help you design the appropriate life insurance package that fits you and your family’s current needs. What’s great about new life insurance products is that it already has a savings component that you can use for long-term investment objectives such as retirement or college education funding for your children. It’s like an all-in-one plan!
- Invest – if you already have a safety fund in place, allocate some of your bonus cash to your future self by investing! Talk to me so we can properly plan your investment and objectives. Keep in mind that every investment should have an objective. We don’t just invest just because we want to invest. It should be purposeful and planned out carefully.
- Enjoy – don’t forget to share your blessings and also treat yourself! Just make sure you spend it wisely and you don’t spend it all in the present moment, leave some for your future.
Any more tips you want to share? Want me to answer other personal finance related questions? Comment below!
To our success in all areas of life,
Argel Tiburcio, CIS, RFP Graduate Member
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Featured image source: http://www.theaccountancy.co.uk/
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