|
By Lorna Tan, Senior Correspondent
With the economy just picking up, most people are expecting smaller year-end bonuses this year or even none at all.
That could make spenders splurge less on expensive holidays or lavish Christmas gifts, and egg on savers to grow their savings.
Some people too may be nursing investment losses and hoping to recoup them by investing their bonuses.
Whichever the case, caution is the watchword this Christmas.
After all, experts are still uncertain as to how long it will take for the global economy to really turn around.
Still, we need not be a Scrooge, especially if we have worked hard over the past year and wish to enjoy the fruits of our labour, says Ms Yash Mishra, head of private client advisory services at ipac financial planning Singapore.
She recommends spending up to 20 per cent of the bonus on yourself and your family, provided you have dealt with any pressing debts.
Mr V. Arivazhagan, managing director of the consumer banking group at DBS Bank, also believes that you can afford to spend some of your bonus, especially during the holiday season, if you have been managing your money consistently well throughout the year.
'That's well and good if you are comfortable with the level of debt you have and you have put aside a sufficient amount for savings and investments,' he says.
But more likely than not, most people will be relying on this year's lump-sum bonus to shore up their overall financial situation, he adds.
There is no one-size-fits-all solution for everyone, and experts advise that the use of that year-end bonus depends very much on one's financial circumstances.
For those who are getting a bonus this year-end, here are some issues to think about:
| 
