Dear Boss Myself
You just received your end of year bonus for the first time at the new company that I joined more than a year ago. You sort of know this money needs to go somewhere. McDonald’s and that new couch really do sound quite attractive. Or a Christmas party for you and your friends. Or even better, how about a trip to Istanbul? You know you deserve this. We all have these voices in our head telling us that we need to spend money on things we need and don’t need. I would like to focus on the things that might help us tonight sleeping better.
Things to spend your bonus on:
Things for others:
Owing people money?
Why not pay your debt off to friends, family and/or business partners?
I love the old saying: Don’t owe anyone anything but love.
Things for your money and your future:
Are you owing the bank money?
Owing on store cards?
Why not kill that credit card debt with your bonus – this will allow for more cash flow from your monthly income. Owing on your mortgage? Remember that something like R100 makes a very very big impact in the bigger picture – this is the power of compound interest.
Paying in extra money on your bond could let you pay it off years faster. Why not invest in shares or another type of investment? The world is big and there are loads of different types of investments – from real estate to stocks, bonds and other funds (ETFs, unit trusts, etc. etc.) – why not explore these opportunities?
Warning: Check out the fees and know what you are buying in to!
Things for you
If you have some money left after investing in the above – getting rid of debt and investing in your future, then you can invest in yourself a little bit.
My suggestion is investing in things that add value to your life – don’t buy things that will have no or little value later on (such as the newest bestest Porche), but invest in things you will remember for the future – or the little things that will make you feel human again.
Do you owe yourself a side hustle?
It’s always good to invest in a side hustle – something on the side that you love and would love to do. Why not invest in the book ‘The Lean Startup’ and get something off the ground.
Do you owe yourself an emergency fund?
You owe it to yourself to have an emergency fund for in case something goes very wrong. If you have three months of expenses to cover if you get retrenched or your car breaks down irreparably, you should be able to sleep a lot more comfortably.
My conclusion is this – think about how you spend your money.
Pay off your debts so you can have better cash flow.
Invest in your future, so that you will not have need.
And invest in yourself today, as you do work hard for your money.