Checking your bank account and seeing your bonus come in may be one of the most anticipated moments in your working life every year. While you have plans lined up for that money, hold your horses for a little bit and ask yourself, “Is this the smartest thing to do with my extra money?” If it’s not, have the courage to hijack your plans and do some of these instead:
Fund Your Future
Setting aside some money may be the most unsexy and boring way to get rich, but boring works. Using some of your bonus to beef up your 401K or other retirement savings plan is one of the most responsible things to do. Your future self will thank you later for affording the quality of life you’ll be enjoying just because you had the discipline and self-control right now.
Pay Off Debts
If you have some outstanding student or credit card debt, now is the best time to get away from paying thousands of dollars in interest. Aside from the chance to get yourself out of the red sooner than expected, you’ll be amazed at the massive savings you enjoy in terms of interest.
Invest in Yourself
You are your greatest asset. That’s why it makes perfect sense to invest in yourself by signing up for a seminar or training that will further your knowledge and education. In addition, investing in your health is wise. You can sign up for yoga classes or gym membership using the extra money that comes your way.
Invest in Your Kids’ Future
College education is getting more expensive with time. If you have kids, setting up a savings plan to fund your children’s education is one of the most meaningful gifts you can give them. Not only are you saving them from the dreaded high-interest student loan, but you’re also setting an example that they can emulate to make them financially wise.
Renovate Your Home
Making some changes to your home may seem like a luxurious expense, but in some instances, it can be an investment. Some renovations add value to any property. Updating your kitchen, for instance, could help increase your home’s resale value. If an investment is on your mind when you ring up an expert in kitchen remodeling in Fort Wayne, it’s still money well spent.
Give Some Away
Money, as it turns out, can buy you happiness. That is if you spend it on what matters. According to studies, people who spend money on others or those who donate to charity experience greater joy than when it’s spent on material things. Investing in others is an investment in your emotional well-being.
Consider Other Investment Vehicles
There are other investment vehicles you can use to build wealth. For instance, low-cost index funds have been hailed even by investing legend like Warren Buffet. You could also start a side business or invest in one.
Taking care of your finances is one of the most responsible things you can do to take care of your future. Start exercising discipline with your bonus now and reap the harvest later on.