Get the most out of your Christmas bonus
December 15, 2006
It's that time of the year again. You probably have received (or will soon receive) your Christmas bonus but before splurging and spending everything, take time to think how to put that extra money to work.
Here are some suggestions from the Personal Finance section of the Philippine Daily Inquirer.
1. Start saving for a big-ticket item. Have you been dreaming of that cool car or relaxing vacation for too long? Then use your bonus to kick off a smart savings plan. You may also use your holiday money for other medium-term goals, like graduate studies or a pad of your very own. If you don’t start now, that dream will slip farther away.
2. How about a business? They say a job gives you stability. Entrepreneurship, on the other hand, is the one that will make you rich. Don't think that you need a lot of capital to start a business. With just P5,000, you can start making polvoron and other sweets then sell it at the office. You can also use that P5,000 to start a business making handmade beaded jewelry. Find out what you like to do and what you are good at. Who knows? Your business may take off and you could end up leaving your job and going into it full-time.
3. Get insured. If you don't have health insurance benefits at work, it's a must that you get your own health insurance coverage. There is never a convenient time to get sick. Use your bonus to pay for the premiums for next year.
4. Pay off debts. Use part of your windfall to pay your credit card bill in full, or that personal loan with the bank. Consider this your most creative gift to yourself. Not only will this allow you to sleep more soundly this coming year, you will also be taking a step further to being more financially stable.
5. Give to charity. You can share your blessings by giving to your church or a favorite charity. You might be surprised to realize later on that the blessings will come back to you.
6. Grow your savings. If you've decided to practice delayed gratification and save for your future, it's not enough that your money is tucked away safe in a savings account. There are many places you can park your cash where it can grow even more through higher interest rates. Here's an article to help you decide where to invest your money.
Still, don't forget to give yourself a reasonable treat. You definitely deserve it!
Have a Merry Christmas and a Prosperous New Year!