How I'm spending my 2022 year-end Bonus

It's December again! 

The time of the year where some of us get our year-end bonus or more commonly called in Singapore, the 13th Month Bonus. This is because for most people, this year-end bonus is usually one month of salary on top of the salary for the month of December.

The year end Bonus in 2022 is especially welcoming for me since I have been sort of living from paycheck to paycheck with minimum savings for 2022. This is largely because a big part of my income goes into paying off the mortgage of my new property as I am using cash instead of CPF for the payment.

Of course the high inflation in 2022 didn't help either. There was quite a substantial increase in household expenses due to the high inflation environment as well. Fortunately, myside income does cushion some of these impact and certainly the year-end bonus is a welcome addition.

So here is how I am spending my 2022 year-end Bonus… a balance between spending some money to enjoy now and parking aside some money to build up wealth for my retirement.

First, I will be using a portion of the money for a short vacation to Indonesia, Bali. Unlike the past 2 years, the world (except China) has pretty much opened up for travel again.

So we decided to travel this year before China opens up causing air ticket prices to shoot up. Fortunately, we managed to book the air tickets early with a budget airline and so the total damage for the trip was still manageable.

Next, I will be using a portion of the money to top up to the Basic Health Sum (BHS) for my Medisave Account (MA) which is what I had been doing for the past few years as well.

The BHS for 2023 will be increased by $2,500 from $66,000 to $68,500. This increase allows me to top up my MA on the 1st January 2023 before the MA interest gets credited to the MA. This top up will enjoy a 4% interest and also tax relief.

Finally, I will use the remaining money to top up my Mum's CPF account 1st January 2023. This again will enjoy a 4 - 6% CPF interest and also tax relief for me and forms part of my strategy of giving my Parent's allowance the smart way.

Get your free $35 NTUC vouchers and more with Trust Bank here. 

Check out the CPFcalculator to plan for your retirement now!

As always, thanks for reading and do support me on my referral page. Stay Safe and Happy 2023!