Push Admin

The best money advice this holiday season: do not spend, but save and invest your bonus

Article (news)

Aneth Ng-Lim

<p>One sure way to be jolly when you welcome 2023 is not to spend a single centavo from your holiday bonus.</p><p>It’s that time of year when all workers have received or will be receiving their end-of-year bonus. Whether you work in the private or public sector, there is a mandatory bonus coming to you. It may be called 13th month pay for employees of private sector, or year-end bonus or cash gift for government employees, but there is sure to be an incoming credit to your payroll.</p><p>Sadly, for many workers, by the time they get their bonus, they have mostly spent it with the cash flowing quickly out of their accounts to pay debts. But if you are lucky enough not to have any loans to pay, consider not spending your bonus at all, and instead save to invest it for better returns. Here are five ho-ho-ho reasons why.</p><div><strong>#1 Interest rates are up and going higher</strong></div><p>The Bangko Sentral ng Pilipinas has been generous in hiking its policy interest rate this year. And while they cannot set the interest rate your bank will pay you, their move has certainly influenced market activity. You can find many investment opportunities – including those with guaranteed pay-outs and those that carry risk on principal – that can help you grow your money in the next 12 months or longer.</p><div><strong>#2 Discover the magic of compound interest</strong></div><p>No less than genius Albert Einstein called it the 8th wonder of the world saying “He who understands it, earns it; he who doesn&#x27;t, pays it.” Simply put, compound interest is the interest you earn on interest. By investing your money, and keeping it invested, it continues to earn interest and all the interest you earn will also earn interest. And you should know that all that interest are yours to enjoy, without having to work for it.</p><div><strong>#3 The more you save, the more your passive income grows</strong></div><p>Active income is money you earn from working. Passive income is money you earn from investing, compound interest, and staying invested. A financial planner once explained to me that he envies the rich, not because they have money, but because their money is the one working hard for them. The rich are rich not only because they have loads of money, but because they have reached that point where their passive income is more than enough to meet their needs and wants. You can have this too by investing your bonus today.</p><div><strong>#4 Get started on building your personal wealth </strong></div><p>Wealth has a nice ring to it, don’t you think? We all want to be wealthy, especially when it comes to money. And the road to wealth starts with saving and investing, not spending your bonus. It’s actually harder to start saving or investing with your regular income that you use to pay for bills and living expenses. But a bonus is usually a one-off windfall that you can spend any way you want. During the holidays, some use it for a family vacation, gifts for relatives and friends, or treats for themselves. If you’ve been doing this for years, why not try something new for a change – and get started on building your personal wealth? One year of scrimping won’t make you a scrooge.</p><div><strong>#5 Enjoy the freedom of financial independence</strong></div><p>Those who have it understand the peace of mind that comes from having savings. You could have a medical emergency, lose your job, or face other financial hardships, but will have the confidence that you can turn things around with the help of money you saved up for these unplanned and unexpected events. And if you do not encounter any of these, enjoy the freedom of knowing you can pursue your personal goals or will have a comfortable retirement when the time comes.</p><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1491900" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

One sure way to be jolly when you welcome 2023 is not to spend a single centavo from your holiday bonus.