Last Updated on Apr 1, 2020 by James W
If you work for a company who gives you salary bonuses every year, you are lucky. Not every company pays their employees bonuses. If you are one of the fortunate ones, you should think really hard about what you are going to spend your bonus on. Since you only get one once a year, you want to spend it wisely. Below are a few good ideas that you should consider.
#1 Home Renovation
If you are unhappy with the appearance of your home, you should consider spending your salary bonus on a home renovation. You could do something relatively inexpensive, such as bathroom renovations Brisbane or a living room or bedroom remodel. If your bonus was a lot of money, you could consider a kitchen renovation.
#2 Pay Off Credit Cards
One great way to spend your salary bonus is to pay off your credit cards. It may not be as much fun as treating yourself to a new wardrobe, but it will save you from making your regular monthly payments. In the end, when you aren’t paying interest, you will be saving yourself hundreds, possibly thousands of dollars each month.
#3 Start a College Fund for Your Children
One of the best things that you can do with your salary bonus is to start a college fund for your children. If you expect to get the same bonus each year, you can continue to add to the bonus. During the year, you can put any extra cash you have in the account, and it will earn interest. It is a great way to plan for your child’s future.
#4 Purchase a New Car
If your car is not running well and you have been wanting to buy a new one, you should use your bonus on a new car. Even if you don’t have enough in your bonus to buy a new car right out, you can use it as a down payment on a new car loan. Between your current car’s trade-in value and the money from your bonus, you should have enough to put a good amount down so that you don’t owe much more on the loan
#5 Treat Yourself
You work hard all year for your bonus. If you live on a budget, chances are you scrimp and save all year. When you get your bonus, you deserve to treat yourself. There is nothing wrong with buying something nice for you or for your family. As long as it is within reason, you earned it.
#6 Catch Up on Overdue Bills
If you are behind on a bill or two, you should use some of your bonus to get caught up. Being behind can be very stressful. If you use your bonus towards overdue bills, you can relax a little and you don’t need to worry about your overdue bills having a negative effect on your credit report.
#7 Save For a Rainy Day
There is no law that states that you must spend your salary bonus when you get it. If you are caught up on your bills, your car is running fine, and your home doesn’t need any repairs, you should put your bonus in the bank where it can earn interest. Having a nest egg or rainy day fund will give you peace of mind that things will be fine if something happens.
When you get your end of the year bonus, there are plenty of things that you can spend it on. If you don’t want to waste the money, you should spend your bonus wisely.
