Why bonuses make us spend first and think later

Bonuses often feel like “free money,” even though we worked hard all year for them. After months of stress and hard work, many of us fall into the “I deserve this, treat yourself!” mindset the moment the payout arrives. Studies also show that spending activates the brain’s reward system, giving us a dopamine hit whenever we buy something we like, which reinforces the habit of spending quickly rather than thoughtfully.

Comparison also doesn’t help. When our social media feeds are full of people upgrading their gadgets, travelling somewhere cool, or buying the latest branded bag, it is natural to feel the urge to follow suit. But long after the thrill fades, real-life expenses, especially health costs, still remain. And let’s face it, we’re growing old. This is when we start seeing more health concerns start to creep up.

Furthermore, year-end sales in Singapore such as 11.11, Black Friday, Cyber Monday, and 12.12 make it easy to overspend. Not to mention the constant alerts from our favourite shopping websites!

Common purchases include:

• New gadgets or appliances
• Year-end holidays
• Fine dining and Christmas gatherings
• Designer items

There’s nothing wrong with treating yourself, but these purchases don’t protect you from:

• Rising chronic conditions like high cholesterol, pre-diabetes and hypertension
• Unexpected GP or specialist visits
• Out-of-pocket bills if your insurance doesn’t fully cover you

We’re not saying don’t spend on items to treat yourself but spend mindfully by setting aside even a small portion for your health so you can enjoy longer-lasting benefits.

The case for rewarding your health

This raises an important question: what if part of your bonus went to things future-you will actually thank you for?

Comprehensive screenings (especially beyond basic subsidised checks), dental or vision care you’ve been delaying, mental health check-ins, and vaccinations or boosters are all “gifts to yourself” that protect both your long-term health and your wallet. Early detection remains one of the most cost-saving moves any Singaporean can make.

In Singapore, early detection is one of the biggest ways to avoid large medical bills. Many major conditions, from cancer to heart disease, are far cheaper to treat when caught early.

A modest investment today can prevent a far larger hospital bill tomorrow.

Bonus hack: Upgrade your insurance while you're young and healthy

Your bonus is the perfect buffer to settle premiums or add protections you may have been putting off. For instance, you can use it to upgrade your Integrated Shield Plan for access to private or A/B1 wards, add Critical Illness Coverage to avoid large financial shocks, or get Disability Income Insurance that safeguards your income if illness prevents you from working. CareShield Life supplements can also strengthen long-term security as you age.

Some insurers may also run promotions, making upgrades even more worthwhile. The younger and healthier you are, the cheaper your premiums, meaning a small upgrade now can result in huge savings later.

For many people, this is the only time of year where cash flow is flexible enough to handle annual premiums or rider upgrades.

Because premiums rise with age and health changes, your 20s and 30s are the cheapest time to secure strong coverage. A small upgrade now can translate into thousands saved in future premiums.

How to split your bonus without killing the fun

This approach lets you enjoy the present without neglecting the essentials.

What to screen for by age (Singapore guidelines)

If you’re using your bonus for health screenings, here’s what to prioritise:

• 20s–30s: cholesterol, diabetes, cervical cancer for women, mental well-being
• 40s: cardiovascular risk, mammogram for women, metabolic health
• 50s+: colorectal cancer screening, bone health, prostate check for men, mammogram for women

These recommended checks help you stay healthy and keep your insurance coverage intact at affordable rates.

Read more about health screenings.

Enjoy your bonus, but future-proof it too

Spending and self-care can co-exist. But before your entire bonus disappears into a 12.12 sale or last-minute holiday (no judgement here, we’ve all done it), set aside a portion for the one thing you’ll always rely on, your health.

A well-planned bonus brings joy today and protection for tomorrow.

To understand your current IP, rider limits or hospital coverage, check your plan using our Coverage Checker.