It’s Called Currency

If your employer traditionally pays Christmas bonuses, you may still receive one this year, depending on what the company has had to cut in order to keep up with the current economy. If you do get that extra money, what are you going to do with it? Will you do the same thing you always have? Will you spend it on Christmas gifts or the post-Christmas sales? Will you splurge on a big ticket item? Will you use it to pay on your debts?

Most people view bonuses as “free money” and they race to spend them. They cash the check and head to the store without even consulting their budgets. When they know the money is coming, they may spend several hours or days contemplating what they’ll spend it on. When it is a surprise, they may hold it for a week, contemplating what to buy, but the still end up with no money and some new item in their lives.

But what if you didn’t spend it this year? What if you paid yourself by putting it into savings? Perhaps your Emergency Fund took a hit or two this year and needs some replenishing. Or maybe you know you’re going to need to do some home repairs or major auto maintenance in the coming months. Why not put the money away for a rainy day instead of letting it vanish into the end of the year spending frenzy?

Or, you can pass your bonus along by giving it to a favorite charity. The saying “’tis better to give than to receive” is very true, and giving to those who are in greater need brings happiness to both the giver and the receiver. If you pull a rock from the river, the water rushes forth to fill space it occupied, and so by giving, you will create a space to receive. (This is that “Law of Attraction” stuff that you’ve heard about in The Secret and all those other books of late.)

If your bonus doesn’t come in the form of cash that can be saved, but rather as food or a store gift card, you can still pass that gift along to someone else. Count your blessings and determine if you know of someone else who would benefit from your non-cash bonus more than you will. Donate food to a shelter or a family you know. Pass the gift card along or use it to buy items to donate. Or make a meal and invite a friend that’s been hard hit by the economy over to feast with you.

If you’ve already budgeted your holiday bonus as regular cashflow, take a few minutes to consider other ways of giving yourself a bonus in the coming year. Do you spend your overtime income each month? Try budgeting only your base salary and putting any extra pay to work building your Emergency Fund. Do you get paid every two weeks? That will result in three checks within a calendar month twice each year. Plan to live on your regular two-check month and save the extra for emergencies or big ticket expenses like tires.

What you choose to do with the bonus money that comes into your life can last much longer than the time it takes to spend it. Decide to save or to share and you will reap additional benefits like reduced stress levels and that “warm fuzzy” that comes from helping others or even your own family and friends. Consider just what kind of bonus you would like to have this year.

Tags: giving, priorities, saving // Add Comment »