5 Smart Things You Can Do Today To Make Your Bonus Grow
By Elizabeth McLaughlin, Assistant Vice President, Marketing
I don’t know about you, but one of my favorite times of year is BONUS TIME!! But what also comes along with that joy is the nagging question:
What should I do with my bonus?
Some people use it for a big one-time spend, like a vacation, but the way I look at it--a bonus gives you the opportunity to meet some of your short- or longer-term financial goals. Personally, I would rather take the opportunity to put my bonus to work for my future.
Here are 5 things you should consider doing today to help make your bonus pay dividends in the future:
1. Save for a big purchase like a car or a down payment on a house.
- If you will need the funds soon, use a savings or money market account to keep your money liquid and more accessible.
- If you have more time, consider putting the funds in a certificate account that matches the timing for when you expect to need the funds. You’ll likely get a better rate and it will help prevent you from using the money for something else.
2. Start, or add to, a 529 College Savings Plan for your children or grandchildren. Saving a lump sum over a longer span of time gives your money the power of compounded interest and lets you earn money on your earnings, which can be a powerful tool to saving more for education.
4. Pay down credit card debt. Get ahead of the game and free up money in the future for saving or other expenses by paying down one or more high-interest debts.
5. Start or add to your retirement savings plan, save more on your bonus by deferring taxes in your employer’s retirement plan or open or contribute to an IRA1.
So what are you going to do with your bonus? Need help deciding? Affinity representatives are super helpful in helping you to weigh your options. Visit affinityfcu.com to schedule an appointment or call 800.325.0808 for personalized assistance. Good luck