Are you expecting that you will get your Christmas bonus soon and unsure yet what to do with it? Bonuses are usually given by employers to their employees at their own discretion. It’s up to them how much they are willing to give – it can just be a little extra cash or a really big fat bonus that serves as a reward for your good performance for the entire year.
No matter how much extra money you get, this only comes once a year so you should definitely put it to good use. Should you spend this windfall or should you save it? Here are a few ideas on what you can do to spend your Christmas bonus:
1. Pay down your debt. You can improve your financial status by paying down your debt. If you can make a large sum payment, you can lower your principal and reduce the total amount of interest on your loans. Aside from reduced interest, it can also take off a couple of months to pay off your debt.
2. Apply to your financial priorities. It can be a great way for you to set the money aside towards your financial goals. Since this is sort of a windfall, technically you will not notice having that bonus money when you put it to building your emergency funds or retirement funds.
3. Invest in insurance. If you don’t want your family to bear the financial burden should something unexpected happen to you, you can invest your bonus in a life or health insurance protection. The ideal policy is something that should be 5 to 10 times than your annual income.
4. Use for a start-up. If you get a big chunk of cash and you are considering on having your own business, it’s also a good idea to do so for creating additional income. Nowadays, it’s difficult to rely on just one income stream so why not use your bonus to create another source?
5. Spend it on home improvement. This is another way to put your bonus to good use. Can’t find anything to fix or renovate in your home at this time? Then you can set the money aside for a rainy day. If you suddenly find a leak at a later time, you wouldn’t need to worry where you will get the money for repairs.
6. Reward yourself. You know you’ve worked hard for the entire year and you know you deserve your bonus so why not spend a portion of the bonus towards yourself? It doesn’t have to be expensive like going to the mall or going on extravagant vacations. It can be simple like playing online games which can be fun, with a chance to win some extra money and can also keep you entertained at the same time.
Having extra cash sure feels good so whatever you decide on what to do when you spend your bonus, you should enjoy it.
What do you plan to do with your Christmas bonus?