Indispensable Tips and Ideas on Making Good Use of Year-end Bonus
Wouldn’t it be nice to know your efforts in the year have been recognized and are being appreciated with a year-end bonus? Of course, this is cash like any other, and unless you make smart choices before you receive the cash, you risk losing it all in a whim. You can decide to re-invest the cash as most people do. The following are some basic ideas on how you can make good use of your year-end bonus.
Have you ever thought that you could use your salary bonus to add onto your 401(k) retirement plan? The beauty of this is the fact that it will always be showing up in your pay stub template showing how much you have put aside on the plan. Closely related to the 401(k) plan is to check on putting up a ROTH IRA retirement savings plan as well. Find a website that will show you how to make this your main retirement fund and then complemented by the 401(K) one. Do you have debts that are causing you sleepless nights, how about you work at bringing several accounts to good standing with your bonus? 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.
On the flip side of the coin, you should never gamble with your year-end bonus. A sure bet would be to be smart enough to create a sustainable lifestyle with odds that will help you get the most out of your hard-earned cash. That is why it is highly recommended that you read a lot here on retirement plans and savings for a rainy day. Avoid buying electronics with your year-end bonus. 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. It is OK to gift your special loved ones, but not at the expense of having your entire bonus finished on gifts alone. There are so many ways you can make good use of these rare treats at the end of every year.