travel & lifestyle blog by ruth dela cruz


Smart Ways to Spend Your Year-End Bonus

October 30, 2014

What do you do the moment you receive your bonus (be it an incentive or 13th, or 14th month pay)? When I was still receiving bonuses, everything went to my savings account. It is a joy for me to see the figures in my savings account increased little by little. It is the same system that I do whenever I receive my monthly salary (we used to get paid monthly, and then bi-weekly). A fixed amount went to my savings account. But, it is not all about saving money for me. I also treat myself to fun trips and shopping spree at times. Oh, how I missed receiving monthly salary (and bonuses!).

Photo Credit: Jordi Labanda

I have resigned last year, and when I handed my resignation letter, I have decided to do more volunteer work and travel (guess, I was dreaming BIG!). So for 11 months, I am doing different things, and although I am not earning much money, I just tell myself (and my friends) that it is good to earn experiences.. but reality bites, I missed looking at the figures in my bank account every 14th of the month!

In a way, my smart way of saving money allowed me to live comfortably everyday and every single day even after I resigned. My friends are surprised at how I maintain this kind of lifestyle for a year without a regular job and just doing several projects on the side. I have to tell you, I made a few lifestyle adjustments. Before, I could easily spend a few hundreds for coffee, or a few thousands for a nice top. I can no longer do that.

Anyway, back to bonuses.. during the event yesterday hosted by, Fitz Villafuerte, blogger and Registered Financial Planner, talked about how to spend your bonuses wisely.

Click Read More to know how you can wisely spend your bonuses..

I know some who are like one-day millionaires thinking of ways to spend the bonuses by buying new gadgets, having a feast, and shopping.

Fitz shared a great formula..


He shared that there are no short-cuts for this. You have to do it one by one.

In saving money (or bonuses) it is ideal to allot 30% of your monthly salary.
Protect means to get a protection for you and your family especially if you are a breadwinner. This is specially true for freelancers like me (who no longer have HMO coverage). Breadwinners should also get life insurance. Don’t forget the emergency fund – which should be your monthly salary x 6.
To grow your asset means to invest. Your investment should be an untouchable money. This should not be your emergency fund. I have invested money last year and when I opened it, I considered this a lost money or untouchable.

It was a short and simple presentation by Fitz but very helpful and enlightening. I think I have jumped from save to grow, and totally missed the protect step because I always relied on the HMO coverage.
 Anyway, for those who want to learn more about investing, you may want to get Fitz’s new book – Guide to Investing 🙂 Thank you Fitz! Awesome to see you!
Ed Uy won a copy! Woot!
He said that it is more of a text book and not inspirational book 🙂
Get a copy at for only Php 500
How do you spend your bonus?

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