Did You Get A Holiday Bonus?
Are you one of the lucky few to get a holiday bonus this year? Fingers crossed that I get one this year!
So… what to do with that extra cash?
If you have a lot of debt, you’re out of luck, no fun things for you. Put it all towards one of your bills. You can put it towards the debt with the highest-interest rate or you can follow Dave Ramsey’s Snowball Plan and put towards the smallest debt you have. But whichever it is- put it there!
If you don’t have any debt (good for you!) then you have some options (isn’t it great to have choices!?)
1. First of all, take off 10% and put it towards charity.
2. Take 15% and put it in your savings ladder
Now this is where the choices and decisions begin:
Here are some questions to help you make your choice:
1. Do you have a fully funded emergency fund? If you don’t, and are not close to having one then put a large amount of your bonus towards this. The emergency fund is one of the most important assets for your financial health and emotional well-being. Knowing that you have money set aside for emergencies can give you piece of mind that not many other things can. So make sure that you are putting as much as you ca, including all or most of your bonus to make sure your emergency fund is in place.
2. Are you barely covering your bills? Is there an “envelope” that never seems to have enough? If bills are creeping up on you, consider placing a significant amount to help bulk up your bills “envelope” and help buffer some hard months. If you have very little money in one of your envelope accounts then consider placing some money in there to bulk that up.
3. Do you have a big event or purchase coming up? I have a family wedding coming up, so any and all bonus money is going towards the expenses associated with that.
4. The best part-splurge! Even if you have to use your money for options 1-3, don’t forget to splurge on something for yourself! Even if its something really small, don’t forget to treat yourself! After all, someone thought you deserved it- that’s why you got a bonus in the first place!