9 JAN 2017
Make The Most Of Your Bonus By Investing & Saving The Right Way
With every years bonus comes loads of happiness! You can finally go on a vacation, gift your mom that jewellery set she always wanted or you can buy that expensive gadget you always wished for.
The lumpsum money in your bank account may tempt you to splurge it on things you always wanted. However, there’s one way you can make your bonus count, that is by investing it or utilizing it in the best manner. Below are some suggestions you can consider;
Pay off debts/EMIs:
Do you have a credit card or a personal loan? Are you yet to clear the outstanding amount. With the increasing inflation rate it is common that most of us have a credit card. Now you can use the bonus to reduce your outstanding EMIs significantly. This will help you save on the interest amount gradually. You may choose to pay your EMIs and wish to utilize your bonus differently. However, it is advisable to pay off debts early as this would reduce financial burden and also give you peace of mind.
Buy that product you always wanted:
Since the bonus is a reward, why not reward yourself? Utilize the bonus to reward yourself by purchasing that product you always wished to buy may be a gadget, a two wheeler etc. You can also gift your loved ones something special like jewellery for your mom, watch for your dad, etc. In this way your loved ones can also enjoy the rewards of your hard work. You may invest atleast 10 to 20% of your bonus on bringing a smile on your loved ones face.
Renovating your house:
If it’s a while that you have renovated your home, then this is the right time where you can renovate/beautify your house. You can buy the appliances and furniture you aspired to make your house look vibrant and stylish.
Go on a vacation:
You can use your bonus to take a vacation with your friends and/or family. This way you can treat yourself with an amazing experience and come back with renewed enthusiasm. It is advisable to limit expenditure on holiday.
Invest for the Future:
If invested correctly, your bonus can reward you with another bonus! Didn’t get it?
Now if your have a risk appetite then you can invest your money in mutual funds or ULIPs. These plans also have an option to invest basis your risk appetite that is if you want to opt for low, balanced or high risk funds. ULIP provides both investment and protection. Investing in five star rated funds under ULIP may be a wiser decision.
If you are a person who likes to play safe and you are looking for guaranteed benefit then FDs or an endowment plan is a good option. The benefit of an endowment plan is that it provides good returns i.e. is equivalent or more than FD and also provides protection. One such plan is Edelweiss Tokio Life – Wealth Builder, it provides guaranteed returns with loyalty additions. It also provides a life cover, tax benefits and loan facility.
You should look at investing or saving not just your bonus but also some part of your income. The reason is that this will help you to be financially prepared for the future. Choose a plan that leads to a maturity pay-out that you can receive as a lump sum to meet your desired goals in the future. It is important that you consider all eventualities that can financially impact your life early in life so that you are prepared for the rainy days.
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