{"id":47,"date":"2020-01-05T12:40:43","date_gmt":"2020-01-05T12:40:43","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=47"},"modified":"2020-01-09T12:00:23","modified_gmt":"2020-01-09T12:00:23","slug":"should-i-spend-my-bonus-money-or-invest-it-best-ways-to-spend-your-bonus-money","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/should-i-spend-my-bonus-money-or-invest-it-best-ways-to-spend-your-bonus-money\/","title":{"rendered":"Should I spend my Bonus Money or invest it? \u2013 Best ways to spend your Bonus Money"},"content":{"rendered":"
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Bonus is a token of appreciation that your employer rewards\nyou with in lieu of your significant contribution that results in the growth of\nthe company. It is like an incentive that an employer pays to its employees in\naddition to their base salaries. It could be a holiday bonus, performance bonus\nor annual bonus – take your pick!<\/em> This\nis a bonus season where many people get to see a lumpsum amount other than\ntheir salary credited into their bank accounts as annual or holiday bonus. A\nlittle extra makes us feel different since we\u2019re already mentally allocated to\nuse salary paycheck for living expenses \u2013 rent and food all come out of our\npaycheck. However, the bonus, on the other hand, feels exciting. The moment we\nget our hands on the bonus money, we start ways to spend it on our wishes and\ndesires. <\/p>\n\n\n\n

Some people desire to buy a new iPhone, some plan to go on a\nlong-awaited vacation, and some desires to use it to do shopping. This is not\nto say that you shouldn\u2019t use your bonus money for anything. Besides, there is\nno sense of earning a bonus if you don\u2019t enjoy spending it. But, remember \u2013 \u201cModeration is key\u201d<\/em> and it\u2019s important\nto distinguish between your needs and wishes. <\/p>\n\n\n\n

There are many different ways to put your bonus money or at\nleast part of it as an investment. One can carefully evaluate his\/her financial\nsituation and figure out which aspect needs financial help. There are the best\nways to spend your bonus money or to be precise \u2013 Invest.<\/em> <\/p>\n\n\n\n

5\nBest Ways to Invest your Bonus Money<\/h2>\n\n\n\n

Here we\u2019ve enlisted some best ways to effectively spend\/invest\nyour bonus money:<\/p>\n\n\n\n

Paying-off\nDebt<\/h3>\n\n\n\n

If you have any lingering car loan, home loan, credit card\nloan, or any other sort of debt with astronomical interest rates, that is\nholding you from expanding your investment portfolio then you can use your\nbonus money to pay-off high-interest debt. <\/p>\n\n\n\n

Think about it! If you are already paying 4-5 per cent interest on your credit card then you won\u2019t be able to receive inflation-adjusted returns out of your investments. Some credit card has interest rates that go as high as 15-20 per cent. If you are paying that much interest then it makes no sense investing in the stock market and hopes to beat the interest rate of 15-20 per cent. <\/p>\n\n\n\n

So, better use your bonus to ease off some burden out of your\nshoulders in paying-off your debt. <\/p>\n\n\n\n

Fund\nyour Retirement Plans<\/h3>\n\n\n\n

Paying off your debt is the very nice first move, and the\nnext big move is to contribute to your retirement plans. It would be great to\nadd some of your bonus money into your retirement accounts and plans. As with\nage, you will need money to fund your existing lifestyle, the added bonus will\nface pace your retirement goals and generate you a corpus that would help you\nmaintain your lifestyle when you will be retired. <\/p>\n\n\n\n

Build\nan Emergency Fund<\/h3>\n\n\n\n

Whether you believe it or not, but it is recommendable to\nhave a 6 to 8 month of income as an emergency fund. In any unfortunate event in\nfuture, you will have a buffer to manage your expenses in case you need to\nswitch jobs or any unforeseen event like car repair, air conditioner breakdown,\nmedical expense or something else. <\/p>\n\n\n\n

You can use your bonus money to boost your emergency funds to\nensure your long-term investments won\u2019t be disturbed and you have back up funds\nto cover any short-term emergency. <\/p>\n\n\n\n

Make an Investment<\/h3>\n\n\n\n

You can also use that bonus money to make investments keeping\npresent and future financial security. The bonus that you will use to make an\ninvestment will generate your returns. There are many investment options\navailable in the market like stocks, mutual funds, ETFs, etc. <\/p>\n\n\n\n

Unfortunately, young folks find it hard to look at the\nprospect of investment. But, truth is, it pays to start saving and investing\nearly in life. The best part of investing in young age is that your money has\nample time to grow and compounding works like a charm. <\/p>\n\n\n\n

Invest in Yourself<\/h3>\n\n\n\n

Money isn\u2019t everything! There are other things in life that\nhold great value and can be a great source of life satisfaction. If you desired\nto learn some skill like job-related skill, learning to play a musical\ninstrument, becoming fluent in a foreign language, or developing some\nprogramming skill, you can put your bonus money to good use by allowing it to\ninvest in yourself. <\/p>\n\n\n\n

Not only you will experience great pleasure but will also\nlearn an important skill that will benefit you at some point in your life as\nthis bonus that you received and invested. <\/p>\n

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Bonus is a token of appreciation that your employer rewards you with in lieu of your significant contribution that results in the growth of the […] Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":137,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[5],"class_list":["post-47","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment","tag-bonus-money"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/47","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=47"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/47\/revisions"}],"predecessor-version":[{"id":50,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/47\/revisions\/50"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/137"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=47"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=47"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=47"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}