What To Do With Christmas Bonuses? Yes, Plural With The -es

In some industry, employees are fortunate enough to receive bonuses this Holiday Season. People have been saving more because of the recession which started in 2007. But despite the unfavorable economic landscape, one can't help but celebrate and that includes spending money on gifts.

I love giving gifts and I love receiving gifts more! The part I dislike most is choosing the gift. Shopping eats up a lot of my time so instead of tiring myself in search for the perfect gift, I just give them cash or gift certificates. This, in my opinion, is the practical way of gifting.

Now, going back to gifts, the bonus kind you receive from a year of hard work. What do you do with the excess money? Two things: save and pay off debts.

I save a big chunk of the money I receive and pay down my credit card debts. While it's tempting to splurge more during the holidays, I have learned that the urge shall pass. There will be other sales in the future and since retail hasn't been doing well in the recession, the promos will be all year round. There's no need to rush in buying stuff. And as for paying off loans and debts, if I have more than enough money saved, I pay a hefty amount on my credit card.

I'd rather enjoy life's simple pleasures than be cash-starved after the holidays. This has been a common trend among my peers. I'd love the idea of wealth but not the one-day rich kind. I've been there and I know how it's like. Well, enough said. I hope you enjoy the Holidays and your bonus or bonuses!

Tough times ahead

Power rates are up. There is a rice shortage. Grocery bills steadily increasing despite the same items are bought every week. Tuition fees will again, increase this year. That said, school supplies, books and uniforms will inevitably follow. What’s next?

I’m hoping that I get a pay increase to level-off the rising prices of basic commodities. I have made belt-tightening measures myself to cope up with all sort of price increases that is happening lately. I’ve cut down on my taxi, lunch outs, out of town trips, and other unnecessary expenses like lending money for free (go figure).

Credit-wise, the banks have maintained the same rates, which is good (based from the POV of a borrower). No recent notices from them as to when they'll increase/adjust existing rates.

Earlier, I was talking to an old friend regarding our work and finances. In his company, for example, they are forced to take their vacation leaves since their company was cutting down on expenses. Not good. Their industry is not doing well in the market anyway. People would rather buy imported goods as they are cheaper in cost. Locally produced products are more expensive.

On top of that, his family has been hit with crisis after crisis – illness then eventually the demise of a loved one. It has literally taken a toll on their finances. Being a double income family should have made their financial position more stable but it did not. Debts piled up one after the other: mortgage payments, education, previous medical expenses, loans, credit cards etc etc. I would’ve retorted my ever-famous perfunctory “that’s life” comment but prevented myself from doing so. I would’ve come across as dismissive and insensitive again. Instead, I suggested that he consider getting a debt consolidation program with one of the local banks. It would save him the hassles of paying multiple creditors. However, he must study this option carefully because from what I know, debt consolidation programs require collateral.

That is one option. Other alternatives could be any of the following:
1. Get another job that pays more.
2. Ditch the car and go back to commuting.
3. Increase savings by reducing or eliminating unnecessary expenses. Focus only on the needs.
4. Kick loafing relatives out of the house.
5. Get a job overseas that has an option of relocating the whole family.

I highlighted item #4. Let’s see what happens next.