Making the most of your Bonus!
For salaried employees, you might have just received your annual bonus or AWS. How are you planning to spend it? Instead of blowing it all on a single extravagant purchase, we’d like to suggest these 5 steps you can consider, to make the most of it…
Step 1: Erase your debt
If you have an outstanding amount owing to either your bank or credit card company, this is the time to pay it off. Full settlement of your loan or reducing the owed balance with a lump sum payment will ensure your debt doesn’t snowball because of the interest charged.
Step 2: Look into growing your money
Look into diversifying your portfolio with some savvy savings and investment tools. Find out the investment portfolio that suits your risk appetite by exploring model portfolios available on dollarDEX. Best part of this is that there are no fees involved, which also means more money is invested for you!
Step 3: Big picture spending
Saving up for a wedding, home purchase or renovations? This is where the next bulk of your bonus might go to. Even if you’ve been steadily putting away cash on a monthly basis, a large injection of funds is pretty useful and lets you make an immediate deposit.
Step 4: Rainy day funds
Having an emergency fund lets you have more options when making certain life decisions, for example, to have a change in career, spend time at home for health or family reasons, or even taking some time off to find yourself (a real luxury in this day and age!).
Step 5: Then treat yourself!
Following these steps creates a healthy habit of enjoying your cash within your means. So whether it’s a nice dinner out or a solo vacation – revel in it. Because now you’ve really earned it!
Did you find these tips useful? How are you planning to spend your bonus? Or simply start by exploring our model portfolios available on dollarDEX!