The Beginner’s Guide to

How to Utilize Your Year-End Bonus for a Rainy Day

Wouldn’t it be nice to know your efforts in the year have been recognized and are being appreciated with a year-end bonus? Even so, unless you are smart enough in the choices that you make with your year-end bonus, you may end up in more financial trouble than before. You can decide to re-invest the cash as most people do. Here are some suggestions on what you can and cannot do with your year-end bonus.

For starters, you can decide to put the money into your 401(k) retirement plan. The beauty of this is the fact that it will always be showing up in your pay stub template showing how much you have put aside on the plan. The other alternative when it comes to retirement is to look at the 401(K) retirement savings plan. Find a website that will show you how to make this your main retirement fund and then complemented by the 401(K) one. You can also use your salary bonus to clear some debt accounts that are giving you sleepless nights. Doing so means you will be working towards bettering your credit rating and also opening yourself up for great investment opportunities. You can also think of putting up the additional cash into an emergency fund account to cover those unforeseen eventualities such as loss of vehicle, job loss, medical emergency, etc.

No matter how you do it, gambling with your bonus is not a smart move and can be a very costly mistake you will live regretting for the rest of your life. You have to work at ways through which you can build a lifestyle with better control over your odds and great returns for your hard-earned cash. Take time to read more online on viable investment and saving opportunities for a rainy day. Year-end bonus is also not cash that you will use to buy electronics. We all know the high depreciation rate of these items meaning you are likely to lose at least half of your investment within the next couple of months.

Year-end bonus is also not the cash to use when you want to be charitable during the festivities. Don’t get me wrong here, it’s OK to be charitable and to give out gifts for Christmas, but try avoiding overdoing it and instead lead your normal life as if you didn’t have the cash in the first place. There are so many ways you can make good use of these rare treats at the end of every year.

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