Same annual bonus but different mindsets and habits.
February and March maybe the months some companies distributing bonuses to their employees.
What are you going to do differently with your bonus this year?
The story of how Ali, Ah Hock and Muttu spent their bonuses.
Ali has snowballed credit card bills from last year's impulsive buying and a few "Buy Now, Pay Later" instalment plans running. Hence, his bonus is already spent before he receives it.
Ah Hock is already in a few group chats with his different group of friends planning for a few short getaways and overseas holidays. The bonus is used to pay for flight tickets and hotel bookings.
Muttu looks at the bonus in his bank account and split them into 50/30/20. He set aside 50% into Financial Planning and growing his long term wealth. Then, 30% of his bonus into a short holiday with his family. The remaining 20%, he put into growing his Emergency Fund.
Many years later...... 👨 👨 👨
Ali found himself trapped in this yearly cycle and his credit card debts were never cleared. He is still struggling with impulsive buying thinking his yearly bonus could give him a great Financial Start but it never happens.
What if one year, the company is underperforming and there is no bonus for Ali?
Ah Hock has travelled to many parts of the world but living pay check to pay check. One day, he met with an accident while holidaying abroad, admitted into the hospital abroad unconscious and is in a critical condition. His parents were desperate, hoping to be able to bring him back for further treatment.
They ended up pleading for crowd funding to raise fund for his stacking medical bills after exhausting all their savings. Ah Hock's #yolo behaviour has implicated his parents and the family.
While Muttu has been utilising his yearly bonuses to refine his insurance, retirement planning and emergency fund while still manage to spend time with his family on a yearly retreat. He is able to continue to hustle with a peace of mind clearly aware that the structure he has built can withstand vulnerabilities and unexpected event without implicating his family and friends.
It is never about how much our income but our habits. Most importantly, is for one to come into awareness, take steady steps in understanding our own financial habits.
Seek advice from professionals like Financial Consultant if you don't know how to start. Then, establish a balanced structure that works for you!
There's NO ONE SIZE FITS ALL..