Thursday, December 18, 2014

Bonus Bonus, What to do with it?

It's the year end, and you guys know what that means... bonus time!

Well, since everyone like to give their inputs for everything, I thought that I'd also share my ideas for what to do with your bonus money. At least, this is what I am doing with mine anyway.

1) Give to Charity

I don't want to sound preachy or give the image of having moral high ground, but giving to charity is in line with my personal life views and values. Consider it!

2) Patch Up Loose Ends

Had an emergency trip to the hospital? Had to attend more weddings / baby showers than usual? Needed to go on an emergency holiday last-minute or else risk going crazy? All are within reasonable limit of happening.

Use this period to evaluate your current emergency fund, and use your bonus to top-up any shortcomings and keep it in top-tip condition! Nothing helps you sleep better at night knowing that if you get fired from work tomorrow, you have the financial ability to sit at home in your underwear for the next few months watching TV and going for interviews.

Also, remember to pay people back any money if you owe them anything!

3) Give Yourself A Treat that YOU Enjoy

You've worked hard all year, why not reward yourself for making it through life an extra year? The point of the life we live in is not to accumulate as much money as we can. Money itself does not bring happiness, it is the things that money can buy! Giving gifts to family and friends also count as giving yourself a treat. You enjoy the act of giving or the after-effects of a closer relationship!

For me, happiness is cheap and comes in many forms, such as giving my friends a treat, buying a shiny trinket from online shopping or even something as silly as buying new stationery for my desk to make work easier to get by! Don't be a sheep and think that a regular and accepted way to spend your bonus and receive a standard unit of December happiness only comes in the form of expensive branded retail therapy or travel to faraway place.

I'm probably happier just turning on the aircon in the afternoon *GASP* and quietly read a book on the sofa than having a staycay~ at MBS and taking selfies at the infinity pool. Not to say that it's wrong, but I know what makes me happy and I know I don't need to spend a lot of money to be happy!

4) Make Your Money Work Out

I would say the best case scenario for the person who has more than ample liquidity would be to do a VC-MA or to do a cash top-up to their CPF SA. Tax savings plus risk-free 4% per annum, how do you beat that?

Another option for those that don't want to get locked out of their money is to do an SRS contribution. It is an investment account that is tax-sheltered! Why not?

Finally, your own good ol' investment instruments could always use a nice boost if you ever have a windfall. However, instead of just plunking money as you would usually do, perhaps use this opportunity to rebalance your allocations?

5) Buy Snacks To Eat While Writing A Blog Post Telling Others What To Do With Their Bonus


Hehe! So, what are you doing with your bonus this year?

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