What to Do with Your Holiday Bonus
Hey, we get it. You work hard for your bonuses. It’s only natural to want to spend your “free money” on something big, something fun. Pulling a Clark Griswold and putting in a swimming pool is not entirely off the table. And while your bonus is yours to do with as you please, we’ll act as the voice of reason and offer up some alternative options to put your extra cash to good use. Before you cash your check, below are a few wise ways to utilize your annual bonus this year.
Pay Down Your Debt
This is the gift that keeps on giving all year long. Arguably more valuable than a tangible gift, making a dent in your existing debt is a decision that will help you make palpable progress for the new year and give you some confidence in your financial position.
Save it for a Rainy Day
This option doesn’t shine as brightly as a fancy, new car, but investing in your future is a hidden gem that will prove its worth in time.
This is a great way to grow your bonus, whether it be saving for retirement, your children’s college tuition, or any other future goals. As a reminder, Valley Credit Union is not an investment professional. For investment-related decisions, always consult a financial advisor. And, if you’d like to earn competitive dividends with guaranteed returns, learn more about Valley’s share certificates.
While investing helps you grow your money for the future, assembling an emergency fund helps you eliminate financial stress when unexpected expenses arise. If you already have an emergency fund in the works, now’s the perfect time to give it a little extra love and care. Or, if you need help getting started, check out these steps.
Take Care of the Necessities
Do you need new tires this year? Are there any annual membership fees coming up soon? Some staple expenses have a way of sneaking up on you every year. Your bonus could be a great opportunity to knock out a few before the bill appears.
Allocate to Your Wish List
Don’t forget to save a portion of your bonus for some well-deserved fun! Stashing away your entire bonus is unrealistic and can lead to burn out in your financial goals. You can prioritize your needs AND allocate a modest amount to something you’ve been looking forward to. If you’ve been saving for a big purchase – such as a vacation, a home remodel, or even a swimming pool – now is the perfect time to add a few more drops to your savings bucket.
There are many ways to use your holiday bonus – many more than we’ve even listed – but the right move is dependent solely on your individual situation. From lessening a financial burden to kickstarting a goal, we hope your decision brings you a little extra c