How to Spend Your Bonus

There are so many ways to spend that fantastic bonus check. But wait. Don't spend in haste. Take some time to consider all your options.

Instructions

Difficulty: Easy

Things You’ll Need:

• Clothes
• Furniture
• Washing Machines
• Airline Tickets
• Brokerage Accounts
• Cruise Tickets
• Event Tickets
• Computers

1. Eliminate debts first. Sure, a vacation would be great, but paying off credit cards saves money and provides peace of mind.
2. Meet with your financial advisor. Consider investing your money in mutual funds within your IRA or 401(k) - $3,000, earning 12 percent interest over a 20-year period, would earn over $32,000.
3. Consider applying your bonus to the principal on your mortgage.
4. Make a list of needs. Do you need a new washing machine? Is your roof leaking? Do your kids need school clothes?
5. Make a list of wants. Are you overdue for a vacation? Would you like some new furniture? Would you like a new computer?
6. Make that final decision. Whatever you decide, enjoy it. Remember, you earned it!

Tips & Warnings

• If the thought of paying off debts or investing your money is painful to you, consider saving a little bit of the bonus for entertainment while using the rest for more responsible causes.
• Have you already got everything you need? Consider helping out a family member or donating your bonus to charity.