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Bonus Burning a Hole in Your Pocket?

June 15, 2022

It’s very easy to lose sight of the value of a dollar when you suddenly see a single ACH deposit in your checking account equivalent to your entire year’s salary. Are you the type of person who takes a step back, thinks logically, and transfers the majority of that bonus payment into your savings account? OR are you the type of person that sees this as an opportunity for a spending spree? We’ve seen both types of people and everything in between.

But, if you’re the green-light spender, here are some tips to avoid unnecessarily spending that annual bonus:

  1. Take care of any high interest debt, such as credit card debt
  2. Pay-up on any large financial obligations that are only billed annually or semi-annually – homeowners insurance, auto insurance, school tuition, etc.
  3. Siphon some off for savings – retirement plans, 529 plans, traditional savings accounts
  4. Lastly, if there’s anything left over, get yourself a modest gift as a reward for working so hard for that bonus!