If you’ve been working hard and you’re a valuable member of the team, your boss might reward you with a big end of year bonus. When you get all of that extra money, you can go two ways; you can either blow it all on something frivolous, or you can use it wisely to help secure your finances. The latter is always the more sensible because you can give yourself more expendable income in the long term, rather than just having one big blowout with your bonus. If you’re not sure what to do with your bonus, here are a couple of ideas.
People don’t like the idea of using their bonus to pay off debts because they think it’s just money down the drain. The thing is, when you’ve got debts, you’re burning money every single month with those interest payments. If you pay off those debts, all of that money you were spending on repayments suddenly becomes disposable income that you can spend on luxuries for yourself. When you get a big bonus from work, it’s an opportunity to clear those debts completely or at least get rid of a big chunk. That way, you’ve got more money to spend every month rather than just spending the bonus on one luxury item.
A lot of people would like to invest money but they don’t have the spare cash to do it. When you get a big bonus, that’s an opportunity to invest it and hopefully see it grow. You don’t need to be an expert to invest in the stock market as long as you do a bit of research first. One of the hottest areas to invest in right now is the artificial intelligence industry because things like driverless cars and automated shopping services are becoming more popular. Just look at the botz stock price history and you can see how much stocks in this industry have already risen. Before you invest, it’s a good idea to get some professional advice so you can make sure that you’re investing your money wisely and don’t risk losing it.
Start An Emergency Fund
Sometimes you’ll be hit with an unexpected expense like a broken down car or serious home repairs that need doing. If you haven’t got any money saved, it will throw your budget out of whack and you could end up in financial trouble. Most people end up having to borrow money in these situations which leaves you in a bad position. That’s why it’s a good idea to have an emergency fund so you can pay off these expenses right away. If you haven’t got one already, getting a bonus is a good opportunity to start one. You don’t have to put it all away but it’s worth considering putting at least some of it aside. Once you’ve got a bit in there already, you’ll be more likely to keep adding to it.
When you get a big bonus you should see it as an opportunity and make sure that you don’t just waste it.
Beth is a 30-something, self-employed Mum rediscovering her connection to British History and nature. Her loves include the discovery of knowledge, walking in the woods, and writing, among others. Beth is a Virtual Assistant at The Happy VA.