LearnYou’ve worked hard for your bonus, now let’s let it work hard for you! Below we look at a handful of options for spending or saving your hard earned money…
Chip away at debt
It might not give you the same feeling as spending it on something nice, but using some or all of your bonus to clear a chunk of debt might make it go further than any of the other options below.
Overpay on your mortgage
Although they tend to be less expensive and less flexible, mortgages are still a debt. If you can afford to, then overpaying on your mortgage could save you some money and get you mortgage free much sooner.
Boost your retirement savings
Contributions to a retirement account are highly tax efficient and redirecting some or all of your bonus to your retirement account might also qualify you for additional contributions from your employer.
Put it towards next year’s vacation
Why not save your lump-sum for next year’s vacation? You can usually secure a better deal the earlier you book, so perhaps now is the best time to start looking and booking!
