Many of us get our annual bonus payouts this time of the year. Though the in-hand component depends on many factors, but the prospect of a significant sum hitting our bank account makes us go crazy with the planning to spend to it. However, how we make the best use of this sudden splurge in money is what differentiates the wise from others.For me, a major part of it went into Equities this year since they have been witnessing a phenomenal run. Even otherwise, Stock Market would give you (more often than not) better returns than any other investment option. The remaining has been allocated across Travel and ‘Keep-the-wife-happy’ budgets 🙂
Over the years though, I would suggest allocating the Bonus to following categories:
- Pay off your Debt
- Save for Emergencies
- Invest in Future
- Upgrade your Skills
- Have fun with the Leftover
You can read more on each in my post for Money View (MV) blog here.