Aditya was busy in office, when he received an SMS 📲 You have received a credit in your account. He thoroughly rereads and his face lights up🤩 He has received his bonus amount.
All of a sudden, that vacation to Thailand seems possible or how about that big screen TV.
Bonus money feels different from our salary. Since our salary comes regularly every month, we’ve already mentally allocated it for living expenses. Rent, food, and entertainment all come out of your paycheck.
Your bonus, on the other hand, feels like a windfall🎰—fun and exciting. And unfortunately, easy to spend.
However, our bonus can be effectively used to manage our financial well-being. The following are a few tips on how to fruitfully utilize your bonus money.
- Emergency Funds for a rainy day☀🌂⛈☔ – It is essential to keep some funds aside for unforeseen circumstances. No one can predict the future and emergencies can come up anytime. Build up an emergency fund equivalent to 6 months of your salary.
- Clear your loan – The very thought of debt is a cause of stress for almost everyone. The ones with no tax benefits and higher interest rates go first. It makes sense to clear off high cost loans like credit card payments or a personal loan. We can also use our bonuses to pre-pay part of our home loans.
- Buy health cover for your family👨⚕👨👩👧👦 – Secure your family’s wellbeing if you don’t already have health cover. It is a good time to review your family’s insurance cover and buy more if you feel the existing one is inadequate.
- Make a long term investment📆♟👨🏼🦳 – Start SIPs in an equity scheme through a liquid fund. Park your money in a liquid fund rather than your savings bank account then start an STP: systematic transfer plan into an equity fund. With the funds out of your bank account, you’re less likely to blow them away.
- Reward yourself❣🛫🏖🍹 – Pampering yourself with your bonus money is not a bad idea at all. Spending isn’t evil but try not to go overboard. Set aside about 25% for a vacation or a special treat for yourself.
A rupee is a rupee, 🤑 whether it comes from your salary or bonus. Invest strategically so you can splurge when you want!
