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. For some people, the year-end bonus is a great boost for retirement and emergency funds investment, and this can be a good choice for you as well as long as you choose the right investment plan. Here are some suggestions on what you can and cannot do with your year-end bonus.
Have you ever thought that you could use your salary bonus to add onto your 401(k) retirement plan? How about you make it a habit, then that each time you get some extra cash such as the year-end bonus you add some to the retirement plan and track it down from your payroll template? The other alternative when it comes to retirement is to look at the 401(K) 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? Doing so means you will be working towards bettering your credit rating and also opening yourself up for great investment opportunities. The other viable way to make good use of your salary bonus is to put it into an emergency fund account for a rainy day in case you have a medical emergency, job loss, loss of vehicle, etc.
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. Find a website and read more on viable investment opportunities and how gambling can mess you up big up. 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.
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. Find a website that has such details and get to go through the ideas, and you are sure to utilize it for a rainy day.