How to make the most out of your bonus

Even for diligent and smart budgeters, a sudden windfall can be tempting to spend. It may be your bonus from work, or a payment for that project you almost forgot about. Suddenly, you’re flush with cash you haven’t allocated yet, and it feels like a free pass to finally buy all of the things on your online cart. Besides, we all deserve to indulge ourselves from time to time, right?

You're totally right — we all deserve to treat ourselves now and then! But here's the deal: you still need to be savvy about how you spend that money. Don’t worry, though! There are ways to reward yourself without messing up your budget. Here's are some tips: 
 

1. Divide and conquer.

The best thing to do with an unexpected influx of cash is to allocate it. Set a budget for indulging yourself with and then put away the rest. If you don’t know what amount to start with, begin with how you budget your monthly expenses and savings — think of it like you just got an extra month of income.

2. Get ahead.

You can also spend your newfound cash to get ahead. If you have any existing debt, you can use this money to pay it off in full — or at least pay down a significant amount — so you don’t have to think about it in the coming months. Whatever’s left, spend on yourself.

3. Invest in the future.

If you haven’t already, now would be a great time to start investing. Use the cash to invest in stocks and make the money work for you. The money you earn from investing, you can use to treat yourself, or better yet, reinvest — that way, you’ll get a compounding effect and keep your money growing passively. View this article for our guide on how to start investing.

4. Go pro.

If you’re still in doubt, go to the pros — don’t be afraid to consult with a financial expert. They can teach you the best way to stay on top of your finances and make sure you’re not wasting a good opportunity to grow your wealth. Visit a BPI branch to learn more.

Want more practical financial advice? Read more at The Program by NEXT.