Where to Put Your Christmas Bonus

by Gily Tenorio on December 14, 2011

in Personal Finance

One of the benefits of being an employee for a company is the bonus that is given away during Christmas season. Although not all companies give bonus, still there are many companies that are generous in giving bonuses to their employees. In my current company, I do not receive bonus because I’m only a contractual employee, only regular workers are given that privilege. In addition, my company is a South Korean so they basically don’t celebrate Christmas as like a Philippine or American company.

It’s a good thing to receive bonuses during this season because you can have enough money to give and spend for your family. Not all people are given this kind of “free money” every year so you should be thankful if you already receive yours. If you’re thinking where to put some extra money from your bonuses, you can see some of my suggestions below.

1. Put it on your savings account

Saving your bonus can be one of the best ways to use it. You can put it temporarily in your saving account so when you need it in the future, you have money to use and you will avoid borrowing or use cash advance of your credit card. I know that many people spend their bonuses on stuffs and giveaways, and it is not bad. You must also enjoy what you are getting and earning and the fruits of your labor. However, it would be better if you could set aside at least 10% of your bonus and put it in your separate savings account so when tough times come or emergency needs, you have money that you can use.

It would be better if you could open another account where you will put the money that your getting aside from your payroll account. You should also hide the ATM or do not bring it so you will not be tempted to withdraw the money that’s in there. You may try also to open an automatic savings account at BPI by going to this link: How to Open a BPI Automatic Savings Account

2. Give some amount of your bonus to charity or organization

Share your blessings. I think this is a good time to help other people because you have better capacity through the money that you get from your company. It’s time to reach out other people or support an organization that you want. It could be your church, the community your living, orphanage or any organizations that you might think that needs financial support.

I’m planning in the future to support World Vision and FEBC. To start with, I would like to promote these two organizations in this blog and I put a link to WV’s website located at the right side bar of this blog.

3. Invest your money

There are many ways to invest your bonus without requiring large amount of money to start with. One example I want to recommend is mutual funds that only requires P5,000 for initial investment. Most of the mutual fund companies require this amount and you could open an account and start buying mutual funds. Furthermore, requirements is not also hard to get because it is like opening a bank account.

However, before opening a mutual fund account, study first how mutual fund works, which type of mutual fund you should invest and which company to choose. There are many MF companies now in the Philippines so you should study which one is the best. Personally, I would recommend these  companies: FAMI, Philequity, BPI and Sun Life since they are the top performers in mutual fund investing. To learn more about mutual fund, you could visit some of my posts about it here: Mutual Funds

4. Pay Your Debt

You shall pay your debt. Firstly, pay the debt you owed to people especially friends and relatives. It is very bad to forget your debt. If you will get bonus this Christmas, I would recommend first to pay all of your debt if possible rather than spend it in buying new smart phones or digital cameras. It is better to start the new year debt-free!

Lastly, pay your credit card debt because it has high interest. As much as possible, pay the whole bill if you have enough money to do so. Don’t pay only the minimum because you know that as the time goes by, your bill will become bigger because of interest.

 

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{ 4 comments… read them below or add one }

mnc January 5, 2012 at 19:42

can u invest in mutual funds while working abroad?

Reply

learnfe January 10, 2012 at 09:06

Hi mnc,

Yes you can open a mutual fund account even when you are abroad. You can also invest after opening an account. It is better if you have a BPI, BDO or Metrobank account which you can use to buy mutual funds.

Reply

Matthew Andreus Narca December 26, 2011 at 01:58

Hi,

How much of my bonus would you recommend as an initial investment in MF?

Reply

learnfe December 26, 2011 at 03:50

Hi Matthew,

I will recommend at least 10% of your bonus or the minimum initial deposit of P5,000 for opening a mutual fund account. But if you can invest more, just do it.

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