Pay off your debts
Being debt free should be your first priority in the New Year. Start paying off interest-bearing debts first, followed by debts taken from family and friends. This should be on top of your financial priorities list more than anything else. Keep in mind that it is not a good idea to start the next year with debts, so use the extra money you have and pay off your loans.
Start an emergency fund
This Christmas, make sure you start setting up your emergency fund, which should be at least six months-worth of your monthly salary. In case something happens, this Emergency Fund could help you get through for at least three to six months and help you get back on track.
Don’t combine this with your usual account to save you from touching it.
Start a business
The best way to stretch your Christmas bonus is to start a business, or if you have an existing business you can use your Christmas bonus to buy additional equipment for your store or other business.
Share your Blessings
The true essence of Christmas is really to share from the heart – to those who need it the most. It’s been months (or even years) since you last saw your family. Since you’re home for the holidays, why not treat them for a change? After all, Christmas is all about family and togetherness. It is understandable that one gets carried away easily in granting family’s requests, so the best way to go about it is to impose a specific budget only.
After all the hard work and sacrifices you did to be able to provide a better life for your family, don’t feel guilty if you indulge yourself into something, like new shoes or a new phone. You deserve it! Pay yourself for a year of hard work! If you have been saving all year round, then this is the time to reward yourself.
Don’t get carried away. Christmas could mean bonus, but this doesn’t mean you’ll forget about your financial goals. The key here is to plan your expenses so you could use your Christmas bonus wisely.