The annual bonus time is upon us again! It’s quite easy to tell, what with the people around us being quite extravagant and generous than they ordinarily are. I should know – I used to be that way myself. Being a shopaholic, I would be tingling in excitement, anticipating the many things I could spend my money on. The options are aplenty: visit a new country, buy that designer bag I’ve been dreaming of for months now, or maybe a nice new bed and matching Egyptian sheets with a 1,000-thread count?
But that was then. I’m not too sure when I stopped thinking like this. Maybe it’s the wisdom that comes with growing old or the comfort of having multiple sources of income that halted my impulse to purchase unnecessary stuff. I would usually find myself considering space limitations and asking myself: why do I need this again?
Since buying a senseless (albeit gorgeous!) purchase has been eliminated from my options on what to spend my money on, I am now left with a conundrum to solve: what should I do with my windfall?
I’ve made a list and narrowed them down to these options – very mature options, if I do say so myself! Some of them just might apply to you, too.
- Pay my dues in advance. In my case, since I’m paying for my own home, I am making an advance deposit on the account. One responsibility off my back, yes?
- Pay yourself. Something I’ve always considered a necessary expense, “paying myself” is a necessary step whenever I have a huge sum of money come in. Where I used to think that rewards for myself came in the form of red-soled heels, now it means more zeroes in my bank account balance.
- Put the money somewhere it will grow. If there’s anything I’ve learned in the last five years, it’s not about how much you have - it’s what you do with your money. There are a ton of options (from SDAs, the stock market, to TDs to UITFs and mutual funds). Make your money grow. You won’t regret it.
- Charity. Since you have so much money, then why not share it with those in need? After all, as they say, the best investment is where the money builds people. Choose a cause or an advocacy, share your blessings, and be rewarded with things that money cannot buy.
So, have you figured out what to do with your windfall?
Photo used under Creative Commons from Luminous Grey