What to Do with Your Holiday Bonus
Updated: Dec 24, 2022
The holiday season means holiday bonuses. There are some smart financial moves you can make with that extra cash.
Your holiday bonus is a great, unexpected amount of income. It won't make or break your budget, but it can help you kick off a healthy financial year! Read on for some great ways to use that holiday bonus.
One of the best things you can do with your bonus is pay off debt. Your debt is losing you more money each month due to interest. Pay off more this month with your extra bonus, and enjoy the reduced amount of interest in the new year! This also means to try not to use credit for your holiday shopping.
Put down an extra payment into a large loan, like your car loan or home mortgage. If going into a home mortgage, the extra payment will go 100% into principle! Go, go for starting the new year on the right foot!
Save it! Depending on the amount, you can invest it or put it into your emergency fund. These are always the very best options if you don't have immediate debt to pay off.
Buy holiday gifts. Of course, it's unfortunate to spend your entire bonus right away, but you can also use it to purchase necessary holiday gifts or hosting goodies, without harming your December budget!
Or, invest in something that's important to your goals for the New Year. Maybe you want to start a business or get healthy... use this extra bonus to invest in that! Find a trainer, purchase a website hosting plan, or buy that course. You'll be glad you did.