I want all your Diwali Bonus back…

If you work for Diamond Polishing company or Diamond Jewelry company in India, you are on leave right now and probably you will read this only when you are back from holiday.

Diwali Bonus - Are you spending or saving ?

Once upon a time - I got some bonus

Most of the employer in Indian Diamond market give bonus on Diwali. You worked hard for company for whole year and now its your employer’s turn to say thanks. Bonus by definition means extra pay due to good performance.

We look at money we get in a regular salary and money we get in Bonus differently. This doesn’t make sense, because any money you spend is reducing your total wealth. But there is something strange about money we get in Bonus. In most cases we end up spending Bonus money in things we would have never bought using our regular salary.

Spending is spending – it doesn’t matter whether money is from your salary or from bonus money.

Here’s one tip on how to decide if you really want to spend that bonus money.

Ask yourself – “Would I buy this using regular salary ?

Let’s say your salary is 20 thousand per month; you get a bonus of 50 thousand rupees; do not think of this 50 thousand as extra money or free money; instead think of this 50 thousand as your 2.5 months worth of salary.(since your monthly salary is 20 thousand, 50/20 = 2.5 months of salary)

Ask yourself – “Would I spend my 2.5 months of salary for something I am planning to? ”

And if you are not sure about the answer then chances are you are buying something you can avoid.

Other problem with bonus money is we consider it as a small amount and think it hardly makes any difference to your financial status. A 50 thousand in or out – is not going to make me rich or poor. Well I have a good/bad news for you and the news is – You are doing it wrong!!!

Have you heard a saying – “boond boond se sagar banta hai“. People who are wealthy consider small and big amount equally. Cash is king save it and use it only when time is right. By spending that bonus money easily you are not doing anything wrong but you are not doing anything rite either.

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