What Should You Do With Your Christmas Bonus?
This article is posted under Personal Finance.
The first week of December is upon us and for almost everyone working in the corporate world, it means that their 13th month pay and Christmas bonuses have already arrived.
For a lucky few, there would also be the 14th month pay and beyond – along with other year-end bonuses.
With this much money, I’m sure you’re already daydreaming of the many things you can buy.
But I’m sure you’re now also hearing a little voice inside your head… telling you that you should save that money or invest it in something to make it grow. I know because I heard that little voice too when I was still working as an employee.
And let me tell you now… before you spend that money on anything this Christmas, that you should listen to that little voice because indeed – the best thing you can do with your Christmas bonus is to save it.
“That’s it?! Save that money? Isn’t it better to invest it?”
Technically yes, it would be better to invest it – but ONLY IF you already have six months worth of emergency funds.
Do you have six months worth of emergency funds?
If your answer is “No”, then saving that money is your best option.
“What about paying my debts?”
That’s also a good option, but I won’t recommend using everything to pay your debts. I’m a big believer in saving money and paying debts AT THE SAME TIME.
If you want to understand why, read this: Should You Save Money If You Have Debts?
“I have an emergency fund, and I have no debts, so I should invest, right?”
Yes, you should invest the money, but you should INVEST IT IN KNOWLEDGE.
Seriously, if you have six months worth of emergency funds and you have no debts, but you don’t know where to invest that money, then your best option is learn about investing.
Read books, attend seminars, visit finance and business websites – feed your mind and have a better understanding of how investments work.
Do this and I’m sure, the next time you see an article with the title, “What Should You Do With Your Christmas Bonus?” – you’ll just smile and not bother to read it because you actually already know the answer.
When that happens, then you’re already one step closer to becoming rich.
Photo courtesy of Eliane
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