If you’ve received your year-end bonus for the year or you’re expecting it, it can be tempting to consider having a splurge in the name of Detty December or convince yourself you deserve an extravagant treat.

But before you throw caution to the wind and deplete that windmill, take some time to consider how you truly want to use it. No matter the size of your hard-earned bonus, you should think about how it can best serve you and your goals in the short and long term.

Here are 5 ways to use your year-end bonus to expand its benefits into the new year and beyond.

1. Pay off debt

If you have a high-interest debt running, a part of your bonus can help shave a part, if not all of it off. You’ll breathe easy knowing you owe no financial debts to anyone.

2. Grow your emergency fund

2020 has taught us one big lesson- always be prepared for emergencies. Throw some part of your bonus into your emergency fund or use it to create one if you don’t already have it. You want to have a financial cushion in case of life’s unexpected moments.

3. Invest in your goals

Whether those goals include putting aside money for your children’s university education, financing your business, renting a bigger apartment, buying a portion of land, getting an MBA abroad, and more; your bonus will help you get closer to achieving it.

4. Invest in yourself

Perhaps there’s a skill you’ve always wanted to learn – one that could help improve your earning power or land you an entirely more lucrative job? Use your bonus to develop that skill and that’s you investing in your future.

5. Diversify your portfolio

Been thinking of spreading out your investment? Now may be the time to go for it with this bonus. When you diversify your investment portfolio, you minimize the risk of loss such that if one investment performs poorly over a certain period, other investments may perform better thereby reducing the potential losses. You also open different sources for returns while in some cases protecting your capital.

Now, let’s say you’ve got the above-mentioned covered and still have some impressive change to spare from your year-end/13th-month bonus – you can go ahead and give yourself the much-deserved treat and roll into the new year motivated to make a greater impact.

Click here to diversify your portfolio today or reach us via enquiries@arm.com.ng for financial advice.