If you get a bonus, what do you spend it on?

Professional Network
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The temptation to splurge your bonus is real, but smart financial planning can set you up for a fantastic, debt-free year. In this article, @Neesa explores the best ways to use that lump sum, suggesting you immediately move it to a ‘hands-off box’ to resist impulse buying.

One suggested strategy is the 50/30/20 split:

  • 50% to pay off high-interest debt (credit cards, retail accounts).
  • 30% into long-term savings (Retirement Annuities, TFSAs, or emergency funds).
  • 20% for holiday and fun expenses.
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No bonus, I am retired. However I DID prepare for retirement. My best advice to all readers, is to not only think of today, think of years to come. Also think of what might happen such as what might happen to you or your loved ones at any time. Being lonely in one’s later years is not nice…..

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