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. Still on investments, how about you think of setting up a ROTH IRA retirement savings plan? You Can always get a website that will guide you on how you can have the 401(k) become secondary to the ROTH IRA) retirement savings plan. Do you have debts that are causing you sleepless nights, how about you work at bringing several accounts to good standing with your bonus? Ultimately, you will have an improved credit rating that will put you in better standing for future investment opportunities. You can also think of putting up the additional cash into an emergency fund account to cover those unforeseen eventualities such as loss of vehicle, job loss, medical emergency, etc.
No matter how you do it, gambling with your bonus is not a smart move and can be a very costly mistake you will live regretting for the rest of your life. You have to work at ways through which you can build a lifestyle with better control over your odds and great returns for 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. By the same token, you should not use your salary bonus to buy electronics. We all know the high depreciation rate of these items meaning you are likely to lose at least half of your investment within the next couple of months.
You should avoid being extra generous during the holidays when the year-end bonus checks in. Don’t get me wrong here, it’s OK to be charitable and to give out gifts for Christmas, but try avoiding overdoing it and instead lead your normal life as if you didn’t have the cash in the first place. There are so many ways you can make good use of these rare treats at the end of every year.
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