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What you do with your Bonus amount?

# Little Savings

Hope by this time, your bonus has been credited to your salary account. What is your plan with the bonus?

I read so many articles on web, how to utilize your bonus amount. 

Few of them suggest, this rule. First pay the high interest loans, then save for any future use. 

But we are all dependents of salary pay-checks, we pay the rents, bills, home loans. And by the first week, our salary accounts go NIL.

We lend money from others, who is in the same situation. I personally experience, at times, by the end of first week, I am with zero balance.

In the year of 2017, I followed this Idea:

I put my bonus amount of INR 65,500 in Annuity Deposit of SBI bank account. And by 7th of every month, an amount of 2000 deposited into my account.

At times, this becomes a savior for me and very needy(As this is year I bought a new home with a loan)

And in the recent years, I can manage without that INR 2000. Now I am planning to put those amount in some Gold Savings scheme.

I suggest, if you receive atleast 3000 every month, you could buy 1gm per month and by the end of your deposit tenure, you could save atleast 2 sovereigns of gold.

So, this idea serves both needy and for future purpose. 

And here is the snippet of my SBI Annuity deposit.


Little Savings - bonus amount
Note: The accumulated interest shown above is only for this month.

If you want to calculate the total accumulated interesttotal amount received for 36 months - Deposit Amount.

2000* 36 months - 65500 = 6500


In the year 2019, I followed this idea:

This year bonus amount has been put into chits.

In the year 2020, I am following this idea:

Due to the Covid-19 impact, we received very less bonus amount.

And due to the job security, I planned to break down into two parts.
  • One for the future use in career
  • One for the Emergency Funds

Little Savings - bonus amount


Career: 
By keep on adding experience to your job, there are less chances for the job security.

So, I decided to add some skills to my career. As part of it, I have started reading about scrum and taken some video courses from Udemy.

Reading is a continuous process. So, put some money for your career(highly recommend for experienced).

If you want learn something on the course, this is the time to upgrade your skills.

Money:
The Covid -19 made me to think about the setting up your Emergency Funds. I am already late in collecting it.

First, I have listed my expenses per month.
  • Rents
  • EMI's for loans
  • Home Expenses include Gas and Power bill etc.,
And after totalling it, I multiplied with 3 times.

There is a thumb rule, that you at least save money for 3-6 months for an Emergency Funds.

I am in the process of setting up my Emergency Funds for 3 months.

So, this is my #LittleSavings idea, And now it's your turn, what is your idea or plan to utilize your bonus amount?


* You can share your views in the comments section.

Comments

  1. 3years ki total interest entha vasthundhi?6500?

    ReplyDelete
    Replies
    1. Yes. In annuity, we have less interest rate. But the idea behind is to have systematic amount per month instead paying loans, which will helpful when needy.

      Delete
  2. Added the segregation sheet to understand the flow of interest and principal in e-annuity deposit.

    ReplyDelete

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