Year end bonuses

It is that time of the year when salaried workers collect their year end bonuses. A couple of weeks ago, the government had also declared 13th month and 0.70 month variable bonuses for all civil servants. With the world economy still in the doldrums, I believe most Singapore workers’ year end bonuses would be modest, in view of anticipated moderated growth for Singapore economy.

This year will be the 7th time I am collecting year-end bonuses. I will be receiving 2.5 months of bonuses, excluding 13th month. The amount is not big, but substantial enough for me to settle my renovation and insurance loans. I also intend to set aside some money for some investments and my baby’s endowment plan. I targeted to settle my car loan by next year-end, using next year’s bonuses. With that, I would only need to worry about my housing loan.

It is important for me to settle these loans as soon as possible as I am currently the house hold sole breadwinner. For those in the same situation as me, you would understand the pressure I am facing. On looking back, this period marks an important milestone for me as I embark on my wealth journey toward financial freedom. It has not been an easy ride but I am glad to have overcome this challenging chapter of my life.

Most Singaporeans had already made plans on how they are going to use their bonuses. Some planned to go for overseas holiday while others planned to buy big-ticket items like car or house. My advice for those who had just started out working is to exercise financial prudent and use your bonuses to pay off your study or any other loans. The interest incurred, especially for credit cards. can be scary if you keep rolling the loan. So always aim to pay off your debt as soon as possible. And year-end bonuses offer the best life-line to you to finish off your existing debt.

How much bonuses are you collecting this year and how you plan to spend it? Care to share?

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Magically yours,

SG Wealth Builder