11 Ways to Spend Your Holiday Bonus
If your employer surprised you with a holiday bonus this year, you might be at a loss of how to spend it. Since a year-end bonus is not guaranteed, you probably didn’t include it in your monthly budget. Check out these 11 ideas:
- Add it to your retirement account.
- Pay off credit card debt or student loans.
- Add it to your emergency savings fund. Read also: Do I Need an Emergency Fund?
- Start a 529 savings plan for your children’s education.
- Save it for a bigger purchase, like a house or car.
- Enroll in a course that will help further your career. Read also: Take Control of Your Own Career Development
- Donate it to your favorite charity.
- Add it to your Health Savings Account (HSA).
- Finish that home improvement project you’ve been putting off.
- Make a lump sum payment on your mortgage.
- Splurge on a massage or nice dinner to reward yourself for all your hard work.
Tips for spending your holiday bonus
Your check might be burning a hole in your pocket. Depending on how you spend it, it could make a significant impact on your financial health.
- Create a budget – When you receive your bonus check, create a budget for it, so you avoid spending it all on something you don’t need just because you have some extra cash. By creating a budget, you can help relieve some of the stress and fatigue you might feel at the end of the year if you’re pinching pennies and trying to make ends meet.
- Prioritize your spending – When you’re creating your budget, determine where the money would be most useful to you. For example, if you have a large balance on your credit cards, it might make the most sense to pay off some of your debt so you can improve your credit score.
- Spend some money on yourself – It’s easy to burn out if you’re trying to meet your financial goals, so splurge a little to reward yourself. You’ve earned it!