New Delhi: Social media channels have been so busy sharing about layoffs that only a few have paid attention to companies declaring bonuses and rewards to retain their employees. Companies have also given bonuses to employees this year to encourage them to work hard in the coming year. While companies use bonuses to motivate their employees, employees can use the same bonus amount to achieve their long-term financial goals.
Looking at the current economic situation, there are many ways one can make the most of his or her recently received bonus amount.
Getting rid of unwanted debts
You must have purchased a variety of items that are currently unproductive due to the easy availability of credits such as “Buy Now and Pay Later” schemes. In the case of inflation, there's a good chance you didn't get to pay it with your regular income. As a result, you must pay off all of your unproductive debts as soon as possible. This year’s annual bonus might be just the option that you had looking for to offload your debts.
Pay your MF premiums
It is normal to miss out on your insurance or mutual fund SIP premiums due to the pandemic and other financial disruptions. This time, your yearly bonus could come in handy. To claim your right, you must pay any outstanding premiums and restart all of your investments.
Increase your emergency fund size
Think about what you could achieve by not spending your bonus amount at all. This year, set aside your bonus as liquid funds for emergencies, as we can see many new startups and large organisations firing employees regardless of their abilities to grow their businesses. What if you become a victim of one of these? It is essential to have additional emergency funds to help you cope with exigencies as and when the need arises.
Learn new skills
You never know when you succumb to your company’s decision to lay off its employees. When we discuss the firing culture of organisations, it becomes necessary that you develop a skill that allows you to earn well while you are not on the job. You can freelance your skills and earn a living from them.
Start investing in the market
It is not easy to know where to invest your money, especially, at a time when the market has been titillating from one direction to another. The fall to extreme lows can result in many investors selling their securities in a panic. In such a case, various stocks have a low PE ratio, indicating that they are trading at lower share prices but have strong fundamentals. You can invest your Diwali bonus in these types of stocks. When the market recovers, your stock will generate profits.
Keeping these factors in mind as you use your recently received bonus to manage your finances better. You must prioritise your bonus amount by becoming debt-free and financially free.