Year-End Bonus Time Is Coming - Do You Know How To Make MORE Money Off Your Bonuses?
Can money make more money?
It’s coming up to the end of the year. And it’s a great time for Filipino employees as they look forward to receiving their 13th month pay (check here to see a break down of what that is!). And it can be tempting to use that bonus to splurge out on yourself. That’s not necessarily wrong, but there are a lot of options on the table when you think about what to do with extra money. In fact, the bonus could double in size if you know what you’re doing!
7 ideas on what to do with extra money
The Christmas bonus can be a game changer for a lot of people. If you’re in a position where you’re unsure how best to use it, consider these options!
1. Pay off debts
Racking up debt is a common occurrence nowadays. You might have maxed out credit cards and built up debt in different places. Paying it off so you can start the new year fresh is a great feeling.
If you’re thinking of going down this route, we suggest paying off the loan with the highest interest rate first to save on interest charges. And then proceed to chunk away at any outstanding debt in decreasing order.
However, if you feel like you could do more with the money, then you can actually group all your debt and pay it off in single monthly payments. Normally this is done through a debt consolidation loan. The interest rate will be a lot lower compared to credit cards and you get to keep your bonus to spend elsewhere! Speaking of which…
2. Start your own business
If you thought about setting up a business to earn some side cash, how about pouring the money into a startup? In fact, Shanghai Siomai allow franchising through initial capital of Php15,000! If your 13th month pay is about this amount, you could easily start up a successful business!
3. Invest in stocks
As we know, an investment can make money. A lot of people enter into the stock market because of the ease of earning by doing, well…nothing! And you don’t need a lot to start, either. Investing in mutual funds like Philequity Peso Bond Fund, Inc can be done with only Php5,000! If you have a slightly bigger bonus, Unit Trust Investment Funds (UTIF), like Security Bank High Dividend Equity Fund, are also a safe and assured stock to put in your portfolio. If you’d like to learn more about stocks, see our guide here.
4. Build an Emergency Fund
They say to save some money for a rainy day. Life is full of uncertainties, which is why an emergency fund of some sort can be crucial for when unexpected things pop up. It’s hard to tell when something might arise like hospital fees. For Php20,000 you can take out Maxicare’s MyMaxicare Silver Plan per year.
You can also deposit your Christmas bonus into a savings account. We’ve compiled a list for you to see which accounts will draw the most interest over time.
5. Give to charity
Giving back to the community is always welcome. There will be others who need a helping hand, and giving to charity is a perfect way to do so. This can be in the form of buying tickets to a charity ball, or just offering donations. As little as Php1,000 can go a long way!
6. Treat your family to something special
Family first! To those closest to you, maybe your Christmas bonus can go a long way to putting that Christmas cheer in! How about treating them to a fancy meal. Or even better, treat them to a holiday! There are plenty of resorts you can book for as little at Php5,000 and can go up to Php10,000. Day trips are also doable as well depending on your budget. Sticking to immediate family might be easier when planning your treat, though.
7. Pamper yourself!
That’s right! You’ve worked hard for the past 12 months and deserve something for yourself. You can indulge in that new phone you were looking for, or a really expensive watch! Just remember to always stay within budget.
Here are some tips suggestions with what to do with extra money. Share with your friends if they could use some pointers!
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