The Best Ways to Spend Your Holiday Bonus

Congrats! You worked hard this year. You have survived some difficult days (or weeks or months). And now, if you’re lucky, you might get a holiday bonus.

But before you can turn your hard-earned boost into revenue, it’s worth thinking about how you want to use it. There are a few things to remember.

  • Avoid headaches later. Americans have learned to anticipate the unexpected, so they are saving more this year. But if it’s been a while since you last replenished your emergency funds, it’s never too late to get started. Aim for a fund that can cover at least 3 months of cost (and 6 months or more in the best scenario).

    Everyone encounters financial problems on the road, such as roof damage from a sudden storm, a late-night trip to an emergency room, or a car that doesn’t start. In that case, having a fallback bonus is a great relief.

  • If you have it, shake off the debt. As the holiday season approaches, we expect more than one in three Americans to take out additional debt. You don’t have to be in them.

    Repayment of debt with bonuses, such as credit card debt, car loans, and tuition payments, is a common option. That’s not surprising. It feels good to repay a large amount of debt at once. In addition, it frees up future cash by reducing the amount of interest.

  • Give a gift to “you in the future”. Whether it’s college, home financing, a bucketlist trip, a comfortable and worry-free layoff, whatever you’re looking forward to, plan now to ensure a smooth voyage for years to come. ..

    Already in addition to your savings? Then enhance your bonus with a responsible, low-risk investment. From certificates of deposit to high-yielding savings accounts, many simple options allow you to relax and enjoy the season while your money is growing.

  • It’s not all or zero. “Saved penny is a earned penny” is a good motto to live.But that doesn’t mean you have to save every day The penny you earn.

    Your bonus should be a reason to celebrate. Remember to set aside some for savings, debt repayment or long-term goals and then treat yourself with the rest.

At Axiom, it’s all about finding a way to make your daily financial decisions a little easier. That’s why we offer different ways to save, invest and manage your money – and give reliable professional guidance at all local branches of our community banks.

Axiom Bank, NA, a nationally chartered community bank headquartered in Central Florida, offers retail banking services such as checks, savings, money markets and CD accounts, as well as commercial banks, financial management services, real estate and business. We offer commercial loans for the purpose of. ..

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