What will you do if you are Pacquiao and you are guaranteed to earn $22 million USD for the fight which may even rise to $30 million once the pay per views and ticket sales come in? WOW!!!!
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Sometimes we feel this way whenever we receive loads of money, as when we receive our 13th and 14th month pay, Christmas bonus, performance bonus, etc. We are one time - big time. We are the king of the world!!!
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The first thing that usually comes to our mind is to TREAT OURSELVES and BUY OURSELVES A PRESENT....after all, we deserve it after weeks or months of hard work. I think there is no problem with this, the only issue is what will we buy? If you're at PACMAN's level, this means a new car, a new house, LV and Hermes bags for Mommy D. and Jinky , new gadgets for the kids, etc. If you're an employee or OFW, its kinda similar to what PACMAN does, only at cheaper prices and smaller quantities. Right?
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Anyway, as a tribute to our "Pambansang Kamao", here are some suggestions on what to do with your bonus or extra money:
M - Make a budget on how will you invest/save/spend the money! Rule of thumb is pay yourself first. So why not allocate at least 20% of your bonus for investment/savings purposes. 10% for charity, tithing, church, helping others, giving back to your community, gift-giving, etc. Then the remaining 70% for your spending (wisely!) purposes.
A - Allocate a portion of your money for self-improvement. Manny is already contemplating what he will do after boxing, how about you? What are your career plans? Why not learn a new skill, a new hobby, a new language, a new sport, a new business venture, a new investment vehicle?
N - Next is health! We need to remain in tip top condition like Manny. So please do your annual executive check-ups, treat any health issues rather than ignoring your ailment, get a health card for yourself and family (kung wala pa), go visit your dentist, treat yourself for a massage.
N - "Nanay Dionisia" factor. For our aging parents, how can we make them happy for the remainder of their retirement ages? I think as they grow old, they appreciate the simpler things in life. Instead of buying them Hermes bags, why not accompany them to the doctor for their own executive checkup. Maybe they need to visit their province of origin, meet up with relatives/friends. Maybe we need to start thinking of purchasing a memorial plan and investing in a memorial lot or start studying about estate planning.
Y - Your family's future. Aside from the material things, our families will appreciate it if we start planning for the future. That dream house, the kids' college fund, you and your wife's insurance and retirement plan.
P - Play therapy. I learned from a parenting seminar that play is very important for kids as they feel empowered when playing. Play refers to physical activity rather than just shoving a computer or video game to a kid to play in the corner. So why not bring your kids to the park or resort or carnival, have a simple picnic, and play together as a family. These little (not so expensive) experiences are what the children cherish.
A - Acts of random kindness. We received so much blessings for the year, what can we give back in return? Who can we help? They say charity begins at home. Maybe a struggling brother/sister or relative? (but don't give them the fish, rather teach them how to fish). There are also a lot of orphanages, home for the aged, cancer-stricken kids, city jails we can visit.
C - Christmas spirit. Are you making your Christmas list already? Who has been naughty or nice to us? I accept that Filipinos love to give gifts! But we just need to budget and avoid overspending and charging everything to our credit cards! The tendency is during Christmas season, the possibility of maxing out our credit cards is highly probable!
Q - Quit smoking. Smoking is just a literary expression of bad habits we need to break. Its time to reassess what habits we need to stop for the betterment of our financial, relational, physical and spiritual health. If we do this, then we can spend our bonus/extra money to other meaningful things!
U - Unli income. Do you want to have unlimited income? Why not spend your bonus or extra money with "earning" assets instead? Your choices include: real estate, business, mutual fund, UITF, stocks, variable insurance, bonds, etc.
I - I love PH. Ask now what your country can do for you, rather what you can do for your country. If we're gonna spend this season, why not support Filipino products. Also, maybe its time to correctly pay our taxes to BIR or pay that overdue SSS or Pag-ibig loan.
A - Ahora mismo! Invest in debt payments as soon as you have your bonus. Before investing in other products or spending on consumer goods, maybe it will be good to pay-out your personal debts first!
Hope this helps.
Ge
Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK. He is also a Certified Public Accountant and a Certified Internal Auditor. Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo).
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