MY friend Anna was overjoyed when she received her Christmas bonus early on November 15. She immediately took the opportunity and splurged on a shiny new phone, trading in her old one to cover the difference. With newfound wealth, Anna treated herself and family with a delicious dinner at an upscale restaurant that same night, followed by convenient ordering of food deliveries for subsequent days afterwards as if it were second nature! But by November 30, all too soon, Anna had nothing left from what began as a generous gesture but materialized into unnecessary extravagance. Now unable to make ends meet until payday came, she's left wondering: Where did my bonus go?

Anna's situation is a common one where many of us often find ourselves in. As the holiday season quickly approaches, it's easy to get carried away by the occasion and spend our bonus on unnecessary items rather than put them toward something more useful in the long run. When Anna came to me with her dilemma, I offered some advice that could help this scenario become a lesson in the future instead of a recurring issue:

1. Make a budget and stick to it. Sit down and make an honest assessment of how much you can comfortably afford to spend without going overboard. This should include not just your bonus but your monthly expenses as well. Then determine how much you can allocate toward 'splurge' items without compromising on other important bills or savings goals.

2. Save first and spend later. Just like Anna, it's easy to get tempted by the bonus when it comes in. But instead of splurging, consider putting away a portion into emergency funds, retirement accounts or other investments. This will not only provide peace of mind now but also cushion you against any unexpected expenses in the future.

3. Be mindful of your 'treats.' Going out to eat and ordering food deliveries are enjoyable luxuries for sure! But it's important to be mindful that these activities can add up quickly if done too often. Consider doing them in moderation or find ways to indulge without breaking the bank, such as cooking at home or enjoying family movie nights.

4. Prioritize your debts. If you have any outstanding loans or credit card debt, use your bonus to make a dent in them. This will not only help you save more in the long run as interest can add up quickly, but it will provide financial relief now.

5. Give something back. Finally, consider giving back to those in need. Whether it's donating to a church or charity, volunteering at an outreach event, or buying groceries for someone in need, giving back can be incredibly rewarding.

With the holiday season just around the corner and Christmas bonuses flowing in now more than ever, Anna's story serves as a reminder to not overdo it. By following these tips, you can successfully enjoy the benefits of your bonus while also keeping your finances in check. As Anna put it, 'It's better late than never!'

Anna may have gone a bit overboard this time, but with good advice and a few changes to her budgeting habits, she can ensure that this won't become a recurring situation. Now that she's taken the necessary steps to avoid overspending in the future, Anna is sure to be better prepared when it comes time for next year's bonus.

I hope this serves useful for anyone else looking to gain control of their finances rather than fall into a financial pitfall as the holidays approach. The important thing to remember is that our bonus does not define us or dictate how we should spend it. We have the power and freedom to decide how to make the most of it. With some careful planning and responsible spending, you can enjoy the luxuries life has to offer without leaving yourself in a financial hole. Here's to making smart money decisions this holiday season!

Janice Sabitsana is a graduate of the Registered Financial Planner program and is the host of www.thepinayinvestor.com blog. To learn more about personal-financial planning, attend the 99th RFP program in January 2023. To inquire, email info@rfp.ph or text at 0917-6248110.