I hope everyone is having a fantastic week. This week was work evaluations and bonus distributions. It’s a nerve-wracking time, sitting through the evaluation hoping you have done everything right. For me, I did okay with only one area of improvement to address. While it shaved a couple of hundred dollars off my bonus, there was still some left to spend. If you are like me, you are mindful of the money you spend and try to be responsible. If you are struggling, here are a few things you can do with your work bonus.
If you can, try to save some of your money. I put a fourth of what I earned into my savings account. Instead of your basic bank savings, I dropped it into a high-yield one to generate extra income on it while it sits. While saving your money isn’t exciting, it is beneficial. It can be used to beef up an emergency fund or to help with a future expense like a home purchase or car.
If you are operating with debt, it’s time to attack it. A bonus is like a windfall. You may or may not receive one, and it should never be tallied as such in your budget. Use the windfall to attack outstanding debts. You can put some money on the debts with the highest interest rates or attack the debts you can pay off in full. I put a fourth of my money on my mortgage principal and a car loan for peace of mind.
If your can, invest some of your money. It could be in the form of the stock market, real estate, crypto, or other sound investments. You can place some in fun accounts or into your IRA. Over time these funds build up and can help put you onto the trajectory of early retirement, or at least a comfortable one. I invested $45 into my Acorns account to hit my target number. I also invested in a Fidelity mutual fund.
You worked hard for your bonus, so don’t give it all away. You should do at least one nice thing for yourself aside from investing in your future. I am putting my money towards an acupuncture session, a new outfit, and a shoe rack for my closet. What will you buy?