It’s always a great surprise to receive that well-deserved bonus during Diwali, after all, Lakshmi ko kaun mana karta hai? But spending that bonus is the trick most of us struggle with.
Don’t worry, LXME will teach you how to spend bonus money and how to invest bonus money.
Let’s follow the 50, 40, 10 rule for this, shall we?
You will invest and save 50% of your bonus to be financially secure. You will spend 40% of your bonus on yourself, your health, and your skills. After all, you earned it! And the remaining 10% to spread smiles and give back to society.
The 50%: Investing
Are you always stressed about having enough money? Then, 50% of your hard-earned bonus should be saved and invested smartly. Firstly you should assess your current financial situation including your existing savings, emergency fund, outstanding debts, and overall financial goals. Once you are done evaluating, create a budget to know how much you can save and how much of your bonus can you invest.
The next step involves setting up an emergency fund since all of us by now know how unpredictable life can be. This should have three to six months’ worth of living expenses saved in a readily accessible account like LXME’s Gulluck. It is a digital piggy bank for smart savings where you can easily invest and redeem. Once you have set up an emergency fund, you should focus on paying off bad loans, that is if you have a very high interest charge, your first priority should be to pay it back as soon as possible, e.g. Credit card bills, and SME loans against collateral. A good Credit Score will help you get lower interest rates, so pay all loans on time. And finally, you can start investing and growing your wealth to be financially free and retire early. For this, you can check out LXME’s expert-curated mutual fund portfolios and invest as per your short-term and long-term goals.
The 40%: Self-care
A bonus well deserved requires a celebration loud enough to get that serotonin hit that lasts for days. So, treat yourself like the princess you are, and good job on working so hard.
Take yourself out on the fancy dinner at that restaurant you have been eyeing for months now. Attend a music fest or a concert and dance the night away with your girlies. Or take that short trip that you have been saving reels of, give the wanderer inside you a surprise, and explore the unseen. You can also go shopping, or get that outfit that has been in your cart for weeks now. You can also avail discounts on your shopping when you pay using Dream Card.
You can invest in your personal development, and upgrade your skillset with courses or books. This is also a great opportunity to elevate your lifestyle and get appliances or products that add to your productivity and comfort.
The 10%: Spreading Smiles
Giving back to society is a noble and rewarding way to make a positive impact on your community. So, why not invest 10% of your bonus into this and make Diwali special for the less privileged too?
You can identify causes and nonprofit organizations that align with your values & interests and donate to support their missions. These can include environmental causes, humanitarian causes, orphanages, and pet shelters.
Your contributions can make a meaningful difference and help create a better future for those in need.
Now you know how to spend bonus money and where to spend it as well. Share it with your friends who might need it.
Where should I invest my Diwali bonus?
You should allocate 50% of your bonus to build an emergency fund, pay off debts, and invest in mutual funds according to your goals. You should spend 40% of it on self-care and donate the remaining 10% to charity.
What is the best way to use a bonus?
The best way to use a bonus is to follow the 50, 40, 10 rule. You should build an emergency fund, pay off debts, and invest in mutual funds with 50% of your bonus. You should spend 40% of it on self-care and donate the remaining 10% to charity.
Should I spend or save my bonus?
You should spend and save your bonus. You should build an emergency fund, pay off debts, and invest in mutual funds with 50% of your bonus. You should spend 40% of it on self-care and donate the remaining 10% to charity.
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