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 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 wished for
Since the bonus is a reward. So it’s no sin to reward yourself for all the hard work you have been putting in since a year! 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.
Plan a trip with your loved ones:
You can use a limited portion of your bonus to take a vacation with your dear ones. This way you can treat yourself with an amazing experience and come back with renewed enthusiasm.
Invest for the Future
If invested correctly, your bonus can reward you with another bonus! Didn’t get it?
ULIPs 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 high rated funds under ULIP may be a wise decision.
If you are a person who likes to play safe then 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.
It depends on what you want! One of the best option is to ensure a better future for you and your family, would be to find an investment avenue that grows your money. How much you invest is in your hands, but it’s essential to do so every time you get a bonus. As for the rest of it, you must decide which of the above options would suit your finances and also give you satisfaction!