What are the best ways to spend your well-deserved bonus? Start with paying yourself first.

Congratulations! You’ve worked hard and are being rewarded with your much-awaited performance bonus. Now that you’re several thousands richer (or more), it’s alright to splurge a little, right? Let’s hold that thought.

Rather than indulging in your desires, why not use this opportunity to get a headstart on your finances? Here’s four ways you can spend your bonus. 

1. Pay off high interest debt

Credit card bills, we’re looking at you. The same goes for personal loans and cash advances, which have one thing in common – high interest rates.

While having credit can be useful, the amount owed can snowball quickly if you do not pay your bills on time. Interest is charged on all outstanding amounts, even if you have consistently paid the minimum sum each month.

Have an outstanding credit card or personal debt? Use your bonus to pay off what you can for less worries in the future.

2. Prepare for rainy days

Use your bonus to start or stock up on your emergency fund. If there’s anything the past two years of COVID-19 has taught us, it’s that anything can happen. 

Make sure you have at least three to six months worth of living expenses in your emergency fund, or more if you’re taking care of others. This way, you’ll be better equipped for unexpected events like an accident, sudden job loss or an unexpected health diagnosis.

If you don’t have an emergency fund, now is the best time to start one. Use your bonus to get the ball rolling and start building it gradually until you’ve reached your goal. 

3. Make your money work harder

If you are debt-free and have sufficient emergency funds and insurance coverage, consider investing your bonus. Instead of letting it idle in a low-interest account, why not invest it for potentially greater gains? If anything, you’ll be able to beat inflation.

Those who have a higher risk appetite, longer investment time horizon and are already savvy investors, can consider instruments like stocks, REITs and ETFs without getting any professional advice.

For those with a lower risk appetite, or are just too busy juggling the various demands of life, you can consider engaging your trusted financial adviser to help you grow your money with a plan that fits your needs.

4. Treat yourself

You deserve a treat for working so hard. With the deals available at the Singtel Shop, you can indulge in the latest gadgets – whether it’s smart watches, phones and tablets, or home appliances – at very competitive prices.

Here’s a look at some of the popular products:

●      Thermomix TM6 – get the smart all-in-one kitchen appliance for $2,398

●      OSIM uDiva 3 massage chair – own the world’s smartest sofa designed for work, play and rest for $2,699

You can also choose to pay with zero-interest instalment plans over 12 or 24 months too!