I have been asked for suggestions on what to do with a nice fat bonus check (or a big pay day from a sales/legal win). It always depends on your particular situation. However, there are some high level things I would suggest thinking about. First, have a plan!! I would go into it with split among your goals, Eg: 20% - short term, 60% - mid/long term, 20% - fun.
Short term issues that alleviate worry:
Pay down any high interest debt - credit card, 2nd mortgage, school loans
Put new tires on your car
Short/mid term value that you can add to your family
Time to upgrade your 10 year old minivan?
Remodel the kids bathroom?
Mid/long term investment for your future self
Fund an IRA
Fund an investment account
Buy into a real estate deal
Fund your safety cash (3 months of family bills)
Fund the kids 529’s
Do something for your self! It’s a bonus, enjoy it.
Buy yourself something fancy
Buy a gift for your sweet heart
Go for a ridiculously expensive dinner/outing
Check off an item on your bucket list
Hop on a plane for a far away spot for a week
Put a down payment on a Tesla
The key points here are:
Take care of some short term issues, that keep you up at night.
Think about your future self … they will be knocking on your door soon
HAVE SOME FUN
Warning: Don’t let your “bonus” fund your life.
If you are counting on your bonus to pay your bills, or keep you afloat for the year … please, pretty please with a cherry on top, you need to reevaluate how you are allocating your monthly income. Use this next bonus check, to catch you up. And lets go ahead and set up a plan, moving forward, so that you are focusing your spending on the things that matter to you. And not throwing money at things that don’t. Schedule a quick call or coffee!!