5 Money-Savvy Things To Do With Your Pay Raise Or Bonus This Year

Consider putting your extra cash this year to good use with these smart money tips

4. Consider passive investments for a more comfortable retirement


5 things to consider if you get a pay raise this year

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Now that you have more cash, consider passive investments, such as savings bonds (appropriate if you are older), or blue chip shares and index funds.

These are simple investments, which do not require you to trade (i.e. You do not need to time the market, and buy and sell to make a profit). Singapore Savings Bonds (SSBs) provide savings at a higher interest rate than the bank, with the flexibility to withdraw at any month. Blue chip shares and the Straits Times Index Fund can be acquired for as little as S$100 a month – this service is available from participating banks such as OCBC and POSB.

But remember not to buy anything without advice from a professional – you can get help if your bank offers wealth management services (this comes with certain types of bank accounts, or premiere banking). Alternatively, speak to an Independent Asset Manager (IAM), or a licensed financial planner.