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An annual bonus is usually based on overall company performance. This means you may get a large or small bonus (or no bonus at all) depending on how successful your organization or specific department was that year, as well as how big a part of that success you were. This can also be considered profit sharing. Here are nine ways to use a bonus to extend its benefits into the new year and beyond.
1Pay off debt. ... 2Max out your retirement accounts. ... 3Invest in an index fund. ... 4Check in on your emergency fund. ... 5Contribute to a 529 plan. ... 6Invest in yourself. ... 7Move that bonus into a high-yield account quickly. ... 8Save for your next vacation.
An annual bonus is usually based on overall company performance. This means you may get a large or small bonus (or no bonus at all) depending on how successful your organization or specific department was that year, as well as how big a part of that success you were. This can also be considered profit sharing.
Here are nine ways to use a bonus to extend its benefits into the new year and beyond.
1
Pay off debt. ...
2
Max out your retirement accounts. ...
3
Invest in an index fund. ...
4
Check in on your emergency fund. ...
5
Contribute to a 529 plan. ...
6
Invest in yourself. ...
7
Move that bonus into a high-yield account quickly. ...
8
Save for your next vacation.
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