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