A year-end bonus is considered by many to be a boon to their finances, and that boon only grows based on how big it is. While you might have your eyes on a certain splurge, it’s best to make a lasting investment out of your year-end bonus. Here’s how to invest your year-end bonus regardless of your budget.
Get Rid of Debt
Are you in the negative? Debt can be a beast that seems like it is forever looming over you. With a bonus, you can eliminate or at least make a dent in your debt. The best strategy is to look over what you owe and how much for each bill. The smaller bills should be paid off in full, while you develop a strategy for paying off the larger ones as soon as you can. If you free up money you’ll have more cash flow to invest. If you can get it all taken care of it in one fell swoop, then you definitely should.
Increase your Rainy-Day Fund
Are you getting by? You should already have some kind of emergency savings account in place. However, it can always be bigger. Take a significant portion of your bonus (at least half) and put it into a savings account that will accumulate interest, thereby making your nest egg even larger. Knowing that you have a safety net in case of emergency is one of the best gifts you can give to yourself.
Are you financially comfortable? Your house should be more than where you come after work to sleep. If things are falling apart or just not looking as good as they could, some home improvement projects might be in order. Your bonus can be used to help cover these expenses. Whether it’s a redesigned kitchen or new tiling in your bathroom, you can make your home look better than ever.
Are you ready for the big leagues? If you have 100K to invest you can increase your net worth considerably if you take part in the stock market. However, it’s never a foolproof strategy. You need to find the right product or commodity and make the right decisions from there. Thanks to the constant demand for gas and oil, gas investments are some of the best ones you can make. Take a look at the different investment opportunities for gas and see what kind would fit your bonus budget the best.
Investments are all about the long-term. When you make a sound investment with your year-end bonus, you prove you know just how much a dollar is worth. Taking the time to consider your bonus and investment will help you to make the right choice with this money that you’ve rightfully earned.