It is the time of year when many people receive a Christmas bonus. This is a great perk that comes with many jobs. Unfortunately fewer and fewer companies are giving a Christmas bonus, and you may end up with a ham or a card. If you are one of the fortunate few, how are you going to use that bonus?
You may be tempted to go and spend the entire amount on Christmas presents. In fact for many, this is the only way that they can afford to have a Christmas. It is important to not become reliant on a Christmas bonus because it is not guaranteed every year. It is better to spend your Christmas bonus on gifts than to go in debt for gifts however. Next year set up a Christmas savings account and plan ahead for Christmas.
You may decide to use your Christmas bonus to pay off debt. This is a great way to use your bonus. This will save you money in interest payments and eventually free up more money down the road. If you go this route you may want to put fifty dollars aside for a nice night out.
Another great way to use your Christmas bonus is to pay yourself. It is easy to invest or save money that never entered your planning budget. This way you are giving yourself a little bit more with the money. You should make sure that you contribute some to retirement. If you are saving up for a new car or a down payment on a house, this will help you get there much faster.
It is important to remember to help others as well. If you can afford it, you can give a portion of your bonus to a charity or purchase a gift for a child. This will help you to experience the joy that comes with giving, while helping someone who is truly in need.
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