While we look back on our best moments this year and look forward to the well-deserved bonuses after months of hard work, it’s an ideal time to make sure your life insurance and financial protection keep up with your goals. Without meaningful budgeting, those extra funds can easily slip away between gift exchanges, family get-togethers, and last-minute shopping.

Through the 50-30-20 rule, your bonus can benefit your long-term security and protection needs during and after the festive season.

Why the 50-30-20 rule work?

Introduced by U.S Senator Elizabeth Warren and Amelia Tyagi in “All Your Worth: The Ultimate Lifetime Money Plan”, this rule is still a practical budgeting framework today.¹

1. Needs (50%): Keeping Your Foundation Solid

Dedicating half of your bonus to essentials situates you ahead of recurring expenses.

• Settle upcoming bills such as rent, tuition, utilities, or annual fees.
  
  
• Manage existing debts or credit card balances.
  
  
• Prepare for early-year obligations so you can start next year with less strain.

Handling your most important responsibilities first gives you room to enjoy the season without worry.

2. Wants (30%): Celebrating Responsibly

Yuletide is exactly the time to enjoy life, treat your family, and make memories.

• Use this portion for gifts, family gatherings, travel, or festive treats.
  
  
• Choose a few meaningful experiences rather than trying to indulge in everything.
  
  
• If spending feels heavy, revisit your priorities and align them with what truly brings you joy.

When you celebrate intentionally, your spending reflects not pressure, but purpose.

3. Goals and the Future (20%): Planting Seeds for Tomorrow 

Rather than letting your extra funds fade after the festivities, channel part of them into life insurance or policy upgrades that strengthen your financial protection.

Consider:

• Enhancing your existing coverage to match your current lifestyle.
  
  
• Adding riders that provide extra layers of security for you and your loved ones.
  
  
• Starting a protection plan that allows your money to grow while safeguarding your future.

Including life insurance in your early holiday planning ensures your efforts work for you even beyond the holiday season. Protection isn’t about holding back; it’s about securing the future you’re working hard to build.

From holiday spending to year-round stability, let your bonus go beyond the season’s celebrations. Celebrate meaningfully, plan wisely, and invest in protection that allows you to live freely today, with the confidence that your tomorrow is secure.

References

1. Warren, E., & Tyagi, A.W. (2006). All your worth: The Ultimate Lifetime Money Plan. Freepress