Christmas bonus stories:
“Tara kain!”
“Uy, sale sa department store!”
“Samgyup tayo mga besh!”
The next day: “teka nasaan na pera ko?” Usually pag nagkakaroon tayo ng additional income eto yung mga naririnig natin.
Pero tama nga ba na dapat gamitin ang buong CHRISTMAS BONUS pang good time? Don’t get us wrong. It’s very important to also have a portion of your income spent on enjoying life. All of us work extremely hard to not only provide for our families but to also live a quality lifestyle. However, how much spending is TOO MUCH?
If you’ve been watching our Personal Finance Series here on Investagrams, you may recall our first episode where we tackled the state of the Philippines in regard to financial literacy. To cut it short, we’re still a long way from where we need to be as a nation. Let’s talk about a topic that often gets overlooked: HANDLING YOUR 13TH MONTH PAY.
You may be wondering, “Why focus on the Christmas bonus?” You’re right, there are so many other aspects we can focus on. We can talk about saving tips, budgeting strategies, and much more. However, we’re zeroing in on how to handle your Christmas bonus because it’s that time of the year again. While it’s just a bonus, it is still money that you can make the most out of. Rather than using it all on luxuries, let’’s tackle how we can be smart about it; while still enjoying the bonus for the holidays!
HOW TO HANDLE YOUR CHRISTMAS BONUS
1. PAY BACK ANY LOANS OR DEBTS
This may not be applicable to all. But, if you owe some money then it may be best to hold back on your samgyupsal cravings for a while. Take the Christmas bonus as an opportunity to pay off debts and lighten the burden on your shoulders. On a side note, try your best to avoid borrowing money from other people especially if it’s only to satisfy your wants. Eating out is great, but definitely better when you don’t have any debt worries after!
2. GIVE BACK TO THE COMMUNITY
Christmas time has always been known as the season of giving. Donating to charities or simply doing a kind deed for someone in need can go a long way. Of course, you don’t have to give your entire bonus away. Even small amounts can go a long way to impact the life of someone less fortunate. It’s also just something nice to do, especially around this time of the year. Humans are social beings, so helping out a fellow human should come naturally.
3. ADD IT TO YOUR EMERGENCY FUND
If you don’t have one yet, then now is the best time to start! Conventional wisdom says that you should have an emergency fund greater or equal to at the very least six months worth of salary. Not everyone can set aside cash for an emergency fund since we all have different circumstances. However, setting aside just half of your Christmas bonus can be a great start! Always remember, we will never know when a black swan event may happen. Better to be prepared than face the consequences.
4. INSURANCE. INSURANCE. INSURANCE
Speaking of black swan events, we will never know what may happen to us or any of our loved ones at any moment. As we’ve said, it’s best to always be prepared. You can use your Christmas bonus to begin investing in insurance. We won’t go deep into the different types since that would take up a whole article of its own. But, as early as now you can start doing your own research on them. There are many kinds and there should be at least one that fits your current situation.
5. MAKE YOUR MONEY WORK FOR YOU
Rather than spending your Christmas bonus on “luho,” why not invest it? It can be a great way to jump-start your investing journey! Anyone can learn how to invest, all you need is effort and dedication. To help everyone get started, we’ve released some guides to help you understand the basics. Of course, you can go over our vast resources to find information on fundamental analysis, technical analysis, and many more!
6. INVEST IN YOURSELF
One of the best investments you can make is an investment in yourselft. No matter what you do in life, there’s always a way for you to improve. May it be in the form of training videos, seminars, or books, investing in yourself is always a great idea. If you’re a trader, one of the ways you can invest in yourself is getting the PRIME ADVANTAGE. If you want to take your trading to the next level, attain your most powerful trading partner in the form of the InvestaPrime+. Curious about how it works? Check this out:
CONCLUSION
Again, it’s okay to use your Christmas bonus on stuff you enjoy. However, it’s not okay to splurge it all and then come back to your worries once the new year starts. We’re just pointing out that you shouldn’t spend ALL OF IT on impulse splurges. The importance of using your Christmas bonus wisely is that it forms DISCIPLINE.
If you can apply the same discipline in your day-to-day road to financial freedom, ‘edi solid diba? Always remember, it’s not just about how much you MAKE, it’s also about how much you SPEND.
Spend wisely, ka-Investa!
