If 2015 is like last year, 78% of workers can hope for some kind of year-end bonus from their employers. If you’re like most people, you’ve probably decided how you want to spend your end of the year bonus before you even have the check in hand. Maybe you’re planning to take off on a shopping spree, host an unforgettable holiday party or even jet away to a luxury vacation resort in the Bahamas. Certainly these all sound like fun ways to spend your bonus-but don’t kid yourself into thinking they’re the smartest ways to use your extra cash.
This year, consider saving or investing your year-end bonus rather than using it to fund a few fleeting moments of fun. You’ll be much better off in the long run when you handle your holiday bonus responsibly, and-trust us-your future self will thank you for it later. Read below to learn more about how you can get the biggest bang for your buck when it comes to your bonus.
Assess the amount of your bonus. Figure out what your bonus check means to your personal financial situation. Is it an extra day’s pay? A week or even a month? The more money in your bonus the more strategy you will need.