If you’re lucky (and you’re on the good list), you may get the gift of an end-of-the-year bonus from your employer.
Whether it’s extra sales commission, profit sharing or just an annual bonus, it’s nice to get that winter windfall!
Unfortunately, at this time of year, it’s also super tempting to go spend that money immediately on a gift for yourself, especially while things are on sale!
But before you blow that bonus, here are 5 ways to make the most of it:
1. Strengthen your emergency fund. If you don’t have at least a few months of easily-accessible savings, consider putting away that holiday bonus for when you need it. Whether it’s a job loss, a major medical event, an expected car repair or something else, you’ll be glad to have the money later on. You can open up a special savings account at CommonWealth One to hold onto that money!
2. Pay down high-interest debt. If you’ve been carrying a credit card balance or other high-interest debt, you can consider using the holiday bonus to knock some of it down. While you’re at it, you should consider researching lower-interest credit cards or balance transfer offers to help pay off the high-interest debt faster. (CommonWealth One’s website has a handy Credit Card Balance Transfer Calculator that you can use to make an informed decision!)
3. Invest in yourself. Your holiday bonus can also be used to boost your retirement or other investment accounts. Money you put in now can grow in the coming years and turn into much more money down the road. Come in and talk to one of our certified investment professionals at CommonWealth One about your options!
4. Invest in your earning potential. Do you have a side gig or a hobby that you can make money doing? If you need a new piece of equipment, a certification, a new website or something else that will help you earn more money, you can consider using your holiday bonus for that. Just make sure that the way you spend it will really help you!
5. Save for a vacation. Do you have a trip planned or a vacation you’ve been putting off? Vacations are actually important to both your mental and physical health — but you can’t relax when you’re worried about how much money you’re spending to take that vacation. It’s still important to look at deals and budget carefully, but your holiday bonus can help a lot.
We hope you have a season of many, many happy financial returns! If you want to talk to us about your financial goals for the new year, we’re happy to chat anytime this winter! Just call, message us through online banking or stop by a branch. Thanks for being a member of CommonWealth One!
