Every year many employees and workers are expecting to receive their 13th month pay. It is also a very tempting time to increase their spending power at the last quarter of the year. Now, the dilemma is many of the regular employees are clueless on how to properly spend it in such a way that they won’t be guilty after. Here are 13 ways you can maximize your bonuses wherein you won’t be disappointed and guilt-free.
- Pay all your debts – There are lots of corporate employees who can afford to own a credit card especially in urban places but there’s also a tendency of getting lured not only to have one credit card but owning 4 cards in a row. A huge bait in having a massive debts may occur. So once you receive your bonus, make that amount a means to pay your debts, if not enough still it could lessen your burdens.
- Create a rainy days fund– Murphy’s Law says that whenever you don’t have rainy day funds the rain always keep on coming. In order for you to prepare for those untimely problems a simple rainy days account must be established. It must be three to six months worth of your monthly needs expenses. Without it, you may experience big debts since you don’t have any safety net once you got hit by an unexpected catastrophe.
- Open a savings account – Some of the Filipino employees sad to say, only owns a payroll account and aside from that nothing .Open a savings account but you need to maintain it. The main purpose of it is not for your money to sleep but to have proper allocations to important priorities so that you can save for the things that really matters to you.
- Buy books and attend financial seminars –Either you are earning big or small, you should still increase your financial IQ in order to remove your fear. Those things that you don’t know, you will hate and when you are not open to learn new things, you are pushing all your dreams backward. Building your Financial IQ brick by brick can change your life.
- Get a life insurance– An old joke says, “The only reason why you don’t need life insurance is when no one is going to cry when you die”. Indeed, you need one since you have a family that needs to be protected in case of your unexpected demise, sickness or accident. You are highly valuable; your ability to earn funds is irreplaceable.
- Invest for your future – Whether it is a stock, mutual funds or real estate, it is a must that you need to prepare and strategize. You won’t be a millennial traveler forever if you keep on draining your savings. If you cannot sustain the cost of having that lifestyle ‘till 60 years old start changing your habits. Check your priorities and look at your financial goals according to your resources.
- Buy a business or franchise – Franchises nowadays have a ready made system. You can easily go thru with it but you still need to be on the business to look at the possible projections. I just want to emphasize that there’s always a risk in every business and is not an automatic success. You need to take care of it like your handling your own child.
- Enroll in short courses – Short courses is getting popular nowadays, either it can be online or in a real classroom, you will surely learn something new. The money you invest in this course can give you another edge especially if you will earn a title in your name. It will not only increase your competence but will give you a really good brand.
- Have a health insurance – 90% of the millennial that I interviewed would like to retire in between 45 to 55 years old. They didn’t see life working ‘till their sixty and many would love to have a second career as an entrepreneur. If you have that kind of perspective, it would be better to enroll yourself with another health cards while the premium is still very low, compare to getting it when you finally retire.
- Hire a financial advisor– When you hire a coach, you will not only get his expertise but also his experiences. You must capitalize other people’s talent in order for you to manage the risks and to minimize the mistakes you may encounter. Let someone create a plan for you and encourages you to save a lot of money in a long run.
- Give a gifts to your love ones – This quarter is also known a season of giving and you can exercise being compassionate by finding a charity, a local church or sponsor a non-profit organization to make their projects a reality.
- Invest it to social enterprise– I’m a big follower of social entrepreneurs today. They are customer driven and also uplift a certain community in the country at the same time. A company called “Cropital” whose technology is serving farmers who needs to get funds to have a capital to grow their crops, and after a couple of months, the investors will receive a dividend from the earnings the farmers got.
- Use it for a vacation fund– There’s a study in the United States that as a human being, travelling helps us to grow and opens up our mind to different perspectives. But do not invest all your bonus to a vacation fund since this will also be an excuse fund for you if you haven’t prepare for the rainy days.
David Isaiah Angway is a Registered Financial Planner, Chartered Wealth Advisor and financial consultant for IT-BPO-Banking, Health Care Industry and Manpower Agencies. He is the CEO and founder of WinLongTerm Financial Consultancy, that helps organizations retain their top key employees such young urban and educated millennial (Gen Y) by teaching practical money management in the workplace. For more information and concerns subscribe to winlongterm.com, Facebook page or contact him at firstname.lastname@example.org, mobile number 0932-445-0145
This was also published in BusinessMirror