What to do with Bonus Money?
Wow! So you had a great year, and find yourself with bonus money. You’re wondering what to do with bonus money? Sit tight, and keep scrolling to find the suggestions!
This post is about what to do with bonus money.
Let’s dive into the top 5 reasons on what to do with bonus money:
1. Emergency Fund
Is your emergency fund fully funded? No, then throw some of that bonus money into this! You’ll get to the finish line that much sooner!
2. Credit Card Debt
Paying down debt is the next best place to throw your bonus money. Especially if you have credit card debt, with the high interest rate and all. This could be a great opportunity to become more financially set for the year.
3. Mortgage Debt
While having a mortgage means you own property, a mortgage is still debt. If you got bonus money, this would be a great place to put extra funds towards the principle. This could mean paying less towards the interest over the lifetime of the loan!
4. Invest
Always a good place to park extra cash. Have you finished contributing to your IRA or 401k? Finished both and wondering where else extra funds can go? You can put funds into a brokerage account that isn’t tax-advantaged, but allows flexibility in withdrawals without penalty!
5. Treat Yourself
Ah, yes. You’ve gone down the list and with each suggestion, you’ve been there & done that. This bullet might be your favorite point yet: time to treat yourself. You could get yourself something nice that you’ve been eyeing on or invest in a memorable trip.
To reiterate, the top 5 reasons on what to do with bonus money are:
- Emergency Fund
- Credit Card Debt
- Mortgage Debt
- Invest
- Treat Yourself
