Five Smart Things to Do with Your Work Bonus
When it comes to bonus time at work, there is simply nothing better. All those extra hours you’ve put in over the course of days, weeks, and months finally paid off when you check your bank account.
When you consider all the hard work that went into getting this additional money, it’s a shame to get over excited and blow it the day it arrives. It may sound dull, but it’s worth being sensible with most of your work bonus and to utilize it as best you can.
If you’re not sure where to start, then read on. The below seven tips are all smart pieces of advice surround what you can do with your bonus.
1. Start or add to your savings
This one is first and foremost because having financial savings is crucial. It's beneficial to have at least six to eight months’ worth of money in an account that would see you over if anything unexpected happened, like losing a job.
Ideally, these savings would sit in a high-interest savings account. If you haven’t started saving up yet, use your bonus as the kickstart moment. If you have already got savings, add a proportion (if not all of it!) to your existing funds.
If the unfortunate scenario of a sticky financial situation arises, you will have the peace of mind that you have money to turn to.
2. Think about your pension
Most companies have a pension scheme which you automatically pay into each month. Pensions are a great way to save for retirement without seeing the money first, and it’s completely up to you how much to put away. Most employers will run a matching program, whereas those who are freelance will have to add their own contributions. Either way, saving for your pensions is vital, and any extra income should be added if possible.
Perhaps take 50% of your bonus and add this to your pension, so that you still get to enjoy a proportion.
3. Have a little fun with it
When we say a little bit of fun, that is exactly what we mean. There are even sensible ways of having fun with bonus’s that can help boost your bonus if you’re lucky. Why not use a small percentage of it and try a bet on lottery jackpots? You never know, if you have a lucky streak, you could come away with more than you thought!
If treating a friend, partner, or family member is more your thing, look at booking a nice dinner at a top-rated restaurant. You may as well treat yourself to a luxury experience too at the same time. Whether it’s to say thank you to someone or just to show how much you appreciate them, it will create fond memories too. Just set a budget what you will allow yourself to spend beforehand.
4. Put it aside for a big purchase
There are so many times during the year we long for a new sofa, a killer dress or that new technology upgrade. Then there are times when we don’t long for something, we just need it. Like a new boiler, replacement radiators or a bathroom refit.
If your bonus is quite large, use it as an opportunity to put a chunk of the money aside for the big items you need. It could be 50-60% of the bonus, while you keep the remainder for yourself. By doing this, you will help get a head start on purchasing something you are going to need sooner or later.
5. Invest in yourself
Has there always been a course you have wanted to study? What about an experience to try out? It could even be a new hair cut at a recommended salon, or something more medical and health related, like laser eye surgery. It’s not selfish to spend your bonus on something that will dramatically make you look and feel more confidence.
Just as long as you are sensible about the return on investment, whether it be mental health or an improvement to your physical life.
What would you do with a bonus? How would you spend it?