How to transform your Christmas bonus into potential savings
MANILA, Philippines — Christmas may have passed, but it is never too late to be money smart especially at the beginning of the year.
For whatever it's worth, if you still have money (hurray!) from your Christmas bonus or you're quite disciplined that you were able to hold on to it amid the holiday mark down and sales, here are tips that you can use on how to save and even stretch your money until the next Christmas this end of the year.
1. Anticipate what’s coming.
Any financial guru would mostly likely say this as the first tip to financial literacy. Knowing how much you will get allows you to plan ahead.
If you're one who gets more than the 13th month pay, then you're quite lucky.
Everyone must take note though: There are several types of bonuses that employees can receive during holidays.
Apart from the mandatory 13th-month pay, employees can receive Christmas bonuses, special gifts or rewards, and even 14th month pay.
2. Allot expenses according to necessity.
It's the classic question of need versus want. Every single time that you are out window-shopping, always, always ask yourself, "Do I need this one or is this more of something that I want?"
Now, if you've honestly answered this question, it will be easier for you to decide if you want to spend your hard-earned money on something that you need or something that you fancy.
Just take note, it is always prudent to set some aside for emergency purposes and the rest for potential savings.
3. There is no need to spend it all.
Markdowns and whopping 50% off sales may be tempting, but this should not give you the license to spend all thinking that you've saved on money by buying everything that's on sale for gifts.
That's one big misconception — the best time to spend everything is the holidays.
Any financial literacy sessions will tell you to designate a good portion of your bonuses for savings. This way, you prevent unnecessary spending and even allow for potential profits.
4. Choose to save.
Needless to say, a large portion of your money spent should be spent, if possible at least half of it and the rest will be for expenses and rewards.
There are many opportunities to secure and grow your savings through reliable savings accounts and time deposits.
For example, you can start with EastWest as it offers solutions that allow you to easily manage your savings and money.
Savings give you a cushion and safety net for any situation that may come in the future. It also bolsters your potential funds through interest rates that can grow your money.
