What Singapore’s Top Financial Bloggers Think You Should Do With Your Year End Bonus
It’s that time of the year, where you receive your well earned year end bonus. For many, this bonus is like a small windfall. Depending on the industry you work in, you may even receive a bonus of up to 6 months! What exactly should you do with this sum of unplanned money then? Sure, it’s a reward for all the hard work you have put in along the year, but does that mean you should splurge it all? Most definitely not.
As some of our fresh grads get their first bonus, we were curious and decided to ask some of Singapore’s top financial bloggers what they’d advise us to do with this amount.
SG Young Investment – Enjoy it, spend it, and save it.
Enjoy the first bonus – Yes saving up is important but so is rewarding ourselves since this is a first bonus. Setting aside 10-20% of the bonus to give ourselves a treat won’t hurt that much
Spend it on our loved ones – Having the first bonus is a great feeling. Sharing it with our loved ones is also a great feeling. Why not give our family or partner a treat or even a vacation to spend some quality time together?
Save a part of it – Bonus is an extra sum of money where after spending, there should still be left over for some savings. It could give our savings account a boost and help us reach our savings goals earlier. Consider saving at least 10-20% of the bonus and grow it through investing.
Cheerful Egg – 45/45/10 ratio
I would save 45% of it, invest 45% of it, and splurge the remaining 10% on something ridiculously unpractical and awesome 🙂
15 Hour Work Week – It shouldn’t be considered a bonus!
The 15HWW household feels these bonuses are actually part of the annual package to compensate us for the “blood, sweat and tears” in the office. The 13th month bonus should not even be considered a bonus. We are paid for the days/weeks we work. However, if you’re feeling miserable because all your colleagues are all out there splurging their bonuses, perhaps you could use the “additional 0.2-0.4 months” that was above the expectation to give yourself a small treat. That’s probably what I would do. =)
BudgetBabe – Put your money into a fund and watch it grow.
If you’ve just gotten your first year-end bonus, CONGRATULATIONS! If I were you, I would take 25% to buy myself a good meal, and then put the remaining 75% of my bonus into an index ETF fund. I’ll then sit back and road as I watch it grow over time into an even bigger amount to give me my future bonuses! Once you taste that feeling of accomplishment in being able to let your money work for you, you’ll never look back. Now, just think about all the possibilities if you invest 100% of your future bonuses? You’re welcome!
Dollars & Sense – Purchase some equities to last you a longer time.
Instead of seeking immediate gratification by spending the money on some electronic gadgets, luxury items or an expensive holiday, why not consider “spending it” on something that doesn’t depreciate? These could include the purchase of some equities or bonds in the financial market. Or even saving it towards a big-ticket item such as a future home renovation. This way, your bonus will be able to last you a much longer time (hopefully a lifetime!)
That said, if you wish to give yourself a simple treat for the year-end, go ahead. But practise moderation, 10% of bonus to buy something you really like should suffice.