SG Budget Babe
Asked on 15 Dec 2019
For those lucky ones, what's the best way to make this extra money work harder for the long term?
I don't have any now. But when I used to have it, I would take a portion of it and have a good meal with my family.
There are some things money can't outright buy, and a good meal (and more importantly, the time spent) is one of them. My parents are getting on in age and there's really few opportunities left to really sit with them, what with the pace of work in Singapore these days.
The rest of the bonus was then saved or invested.
I always put all my bonuses into my investment portfolio. Because bonuses are the extra funds and by investing it, i can grow my money faster.
I guess it really depends on you and your goals! For me, I will invest it into solid growth stocks. But with that said, I wouldn't mind taking a small portion of it just to treat myself & my family a little!
For me. The 13th month bonus is an extra to me because i do not have to pay an extra month of expenses (13th month expense)
What I do is that i invest the entire amount into the stock market on a stock which i how done analysis on
Use it to invest in yourself, explore which investment tool will help you to achieve your end goal.
Buy stocks, indices, ETF.
If you don't know what ETF to buy, i will say go for the most global, most standard, most diverisfied of all - IWDA ETF
(can google for IWDA ETF)
buy and hold for long term, for your retirement
Don't have now as current job not entitle to.
If I have, I would split to :
1) 10% to charity (2.5 time taxable income deductable or non deductable)
2) 70% to SRS (reinvest to Robo or Index fund or blue chips) or MA/SA top up (get 4%+ guaranteed)
3) 20% savings for future good investment and strike when see a good deal immediately.
Number 1 maybe good for tax planning if not for good purpose to give and sow a good seed. The rest is all for long and short term investment.
Depends if you got any committments (parents/house/car/child etc), if not allocate a portion for CPF RSTU SA top up, it does it bit to build you retirement fund plus tax relief for next year, do it yearly and it becomes a good rountine of retirement planning.
Investing is great if you have excess, time in the market is always better than timing the market.
$1k to build the baby's CDA, another $1k towards my CIMB account, the rest is in the savings account as I source for an apt gift for the wifey (probably a massage package because she has sore shoulders from having to carry the baby always) (becos as they say, Happy Wife, Happy Life :) )
50% for stuff that gives me tax reliefs, be it CPF top-up, or SRS.
30% will go towards my savings goal for investments. Then I dip into the savings goal when the stocks / reits I want to top-up when there is a sale or decent offer / good rights issues.
10% will go to my Rewards / travel / spending fund.
10% will go towards Family via Angpows.
I would suggest this:
70% - Save or Invest
20% - Spend, enjoy a little
10% - Donate (if not, you can put it as spending)
In this case, you will enjoy guilt-free spending while you "lock-in" your bonus.
I treated it no differently from other months' salaries - when not confident to invest, save. But now that there's seedly, the options have opened up in terms of investment. Personally to me the enjoyment of an expensive meal is quickly forgotten (esp if only once a year) so if want to reward myself, i'd rather get sthing both material and useful for a long time.
Put it into your CPF special account and let it earn higher interest. After all, that bonus is considered as an extra. You have been surviving the past 12 months without it, surely you can survive not spending it too. Put it in there, out of sight, out of mind.
I always spend a portion of it first to reward myself for working another year. It's difficult holding down a full-time job and if you don't find a way to make yourself feel good, you are going to resent working or burn out sooner.
Unless you are the kind that enjoys your work so much that it doesn't feel like a job. Then by all means, go ahead to invest your entire bonus. Otherwise, spend on yourself first but leave a portion as cash savings and the remaining portion for investment.