Big Bonus? Don't Ignore the Rainbow

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:

1. Pay down any high interest debt - credit card, 2nd mortgage, school loans

2. Put new tires on your car

Short/mid term value that you can add to your family

1. Time to upgrade your 10 year old minivan?

2. Remodel the kids bathroom?

Mid/long term investment for your future self

1. Fund an IRA

2. Fund an investment account

3. Buy into a real estate deal

4. Fund your safety cash (3 months of family bills)

5. Fund the kids 529’s

Do something for your self! It’s a bonus, enjoy it.

1. Buy yourself something fancy

2. Buy a gift for your sweet heart

3. Go for a ridiculously expensive dinner/outing

4. Check off an item on your bucket list

5. Hop on a plane for a far away spot for a week

6. Put a down payment on a Tesla

The key points here are:

1. Take care of some short term issues, that keep you up at night.

2. Think about your future self … they will be knocking on your door soon

3. 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!!