Woohoo! You just got your annual bonus. Time to P.A.R.T.Y!
Or is it?
Of course it’s only natural to want to splurge after a year of hard work. But once the hangover clears up and the bills, you’ll start feeling differently about what that bonus could have done for you.
Here are 5 things that you can do with your bonus and still have a good time.
If your bonus is a substantial amount, you could use it to pay off a Credit Card bill or make a part payment on a Personal Loan or Home Loan. This means that whatever you owe the bank will come down by a sizable amount.
- Get security
No, not bodyguards – financial security in the form of Health or Life Insurance. You could use the money to pay premiums on a policy for good coverage. Considering the high cost of medical treatment and other living expenses these days, this would be a wise way to make sure you and your loved ones are taken care of.
- Cut down on taxes
You could invest the money in a tax-saving scheme like a tax-saving Fixed Deposit. Your money will be safe and grow at prescribed rates while you claim tax benefits for this investment.
- Take a few risks
With this extra cash on hand, you can earn considerable returns by investing a large amount in an equity mutual fund. Icing on the cake – you don’t have to know squat about the stock market to invest in a mutual fund. You’ll still get more on an investment than you would have with small-time investments.
- Invest in the future
It’s never too early to be thinking about retirement and how you plan to fund it. Investing the money in a compounded-returns account like a pension fund or a provident fund will help take care of this. The more you put into your retirement account, the more you’ll eventually have.
So, now that you’ve got your priorities sorted, let’s talk about that party. To fund the party, you just need to do one thing and that is separate your bonus into investment money and party money. It goes without saying that your party money should be a small portion of your overall bonus. But once you figure that out, make sure you have some close friends to celebrate with and an awesome location to celebrate in and you will be set.