What could be more rewarding than the satisfaction that comes with knowing your efforts throughout the year have paid off and you have that highly coveted end-of-year bonus? Whatever percentage of cash that you get as a bonus on your monthly check, that is something you ought to plan accordingly on how best to utilize it. For some people, the year-end bonus is a great boost for retirement and emergency funds investment, and this can be a good choice for you as well as long as you choose the right investment plan. Here are some suggestions on what you can and cannot do with your year-end bonus.
For starters, you can decide to put the money into your 401(k) retirement plan. How about you make it a habit, then that each time you get some extra cash such as the year-end bonus you add some to the retirement plan and track it down from your payroll template? Closely related to the 401(k) plan is to check on putting up a ROTH IRA retirement savings plan as well. You Can always get a website that will guide you on how you can have the 401(k) become secondary to the ROTH IRA) retirement savings plan. You can also use your salary bonus to clear some debt accounts that are giving you sleepless nights. Doing so means you will be working towards bettering your credit rating and also opening yourself up for great investment opportunities. Last but not least, you can decide to set the cash aside and have it into an emergency fund account you know for those unforeseen situations that show up when you least expect them.
Having looked at ways in which you can use your salary bonus, one of the ways you can never use your bonus is to gamble. You have to work at ways through which you can build a lifestyle with better control over your odds and great returns for your hard-earned cash. Take time to read more online on viable investment and saving opportunities for a rainy day. By the same token, you should not use your salary bonus to buy electronics. Of course, the rate of depreciation of electronics is pretty high meaning you will end up losing a lot within a few months.
Be wise when the year-end bonus comes in, and you are tempted to be extra generous with gifts for the holidays. Don’t get me wrong here, it’s OK to be charitable and to give out gifts for Christmas, but try avoiding overdoing it and instead lead your normal life as if you didn’t have the cash in the first place. There are so many ways you can make good use of these rare treats at the end of every year.