5 financially wise ways to use your bonus

You have got your bonus. You are rejoicing. Extra cash is always worth rejoicing. You spend your bonus purchasing gifts for your loved ones or buying essential items for your home. But a year-end bonus can also be a chance to budget wisely.

Repay Loans

Take this time to repay your loans. It may seem less exciting, and the huge bonus can seem tempting but don’t get carried away. The sooner you can repay your loans, the better it is for your financial independence. And let’s face it, being debt-free is a feeling you certainly want to experience.

Invest More for Retirement

It may seem too soon, but it’s never too early to start saving up for your retirement. The best way to get a head start on your retirement fund is to begin investing. And if you’re already on the investment wagon, it’s time you started investing more. Diversify your portfolio if you feel that’s important, read up more on investments, speak to the right people and figure out to invest more.

Start a Side Hustle

The initial years of your career should be strictly reserved for hustling. Doing your regular job won’t suffice anymore, especially if you want to build your wealth portfolio. Find an interest you’re passionate about and dedicate your time and effort to hone in on your skills until you can make a sustainable living out of it. Continue to learn and grow in your knowledge by taking online courses.

Build an Emergency Fund

It’s always wise to have an emergency fund. This helps you prepare for life’s many uncertainties. Build your emergency fund by setting aside a dedicated amount each month. Consider growing your savings through a savings account such as the IDFC FIRST Bank Savings Account that gets you monthly interest credit on savings.

Plan for Short Term Goals

You could use your bonus to fulfil more immediate needs and short-term goals. If you’ve been eyeing a motorbike for a while now, wish to upgrade your laptop, want to get a new phone, you could use the money to meet these needs instead of emptying your savings.

The new year brings new promises. Use your bonus for things that are important and could help you in the long run. Start the year on a great note by utilising your bonus wisely.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.