It's bonus time of the year! I believe most of you are happier this month because of the extra cash in your bank account. No matter how small or big is your bonus, it must be used wisely to avoid regret and improve your life.
Here are the wise ways to use your annual bonus:
Try to clear as much debts as possible, especially high-interest ones.
2. Setup Emergency Fund
Ideally you should have equal to 3-4 months expenses in your account in case there's unforeseen circumstances happens. It's good if you have 6 months amount.
3. Start Investing
If you haven't started investing, maybe you should start considering it. With high inflation rate and low interest in your saving account, your money won't grow. Only with investment you can at least see that your money 'working harder' for you. If you're afraid of losing your hard-earned money, opt for low to medium risk type (i.e., mutual funds). Always remember to do research or get knowledge before you're investing. Or alternatively, get opinion from financial planner.
4. Health and Life Insurance
Health is your number one wealth. You must always protect your health and life for yourself and family. Getting insurance is the way to do it. Choose reputable insurance that has greater coverage and benefits from your premium.
5. Improving Your Health and Wellness
Taking care your health and wellness is an important thing to do. Healthy body and mind can lead to higher productivity at work and in the end will bring wealth for you. Use your bonus for something that can improve your health and wellness. Here are some ideas:
- Health screening
- Dental treatment
- Good pair of glasses (get PC glasses to protect your eyes from harmful blue light that comes from digital monitors)
- Gym membership (and make sure you fully utilize it)
- Massage cushion
- Healthy food
- Good mattress and pillow
- Comfortable shoes
6. Improve Your Skills
Use your bonus money to upgrade your skills. You can take up professional courses, language courses, soft skill courses or other life skill courses, like baking, swimming, driving, etc.
Ok, you can splurge a bit on your hobby and interest now.
8. Travel or Vacation
It's definitely a wise way to spend your bonus. Set aside some portion for vacation. You deserve it.
9. Treating Family and Friends
You can show your appreciation to friends and family for their support.
Last but not least, donate some portion of your bonus for charity or good cause. Let's make the world a better place.