The Best Way to Grow Your Money and Bonus for 2018

By Elizabeth McLaughlin, Assistant VP, Marketing

The season for giving is upon us, and one of the best gifts any employee can receive is a beautifully packaged…BONUS!

best way to grow your money

Receiving a bonus is one thing, but knowing what to do with it is a completely different ball game. Some people use it for a big 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. In case you’re wondering what constitutes a short-term goal, saving ten percent of income every month would be an example. A long-term goal would be paying off all student loans within five years of graduation. Personally, I would rather take the opportunity to let a bonus benefit my future, but the opportunities for saving are truly endless. Also, what works for me may not work for you, which is why it is paramount to find the personalized financial planning tips that suit your life!

While you have the option to spend and save as you wish, we have 5 things you should consider doing today for the best way to grow your money and make your bonus pay dividends in the future.

5 Considerations for the Best Way to Grow Your Money:

1. Saving is the name of the game. That’s why it’s so important to save for big purchases like a car or a down payment on a house. If you need funds soon, use a savings, certificate or money market account to keep everything liquid and more accessible. Never forget that while we all want the big items immediately there are foundational steps needed to get there. This means that you may have to wait for big ticket items, or adjust the types of accounts you have.

2. Your children and grandchildren are the future, so why not help them out. You can use money from your bonus to start, or add to, a 529 College Savings Plan. Saving a lump sum over a longer span of time gives your money the power of compounded interest. This also lets you make more on your earnings, which can be a powerful tool when you’re hit with those hefty tuition bills.

3. Extra principal payments aren’t dreadful. Make an extra principal payment on your mortgage or other loan and reduce the overall interest. This could potentially save you a significant amount of money in the long run and become a best way to grow your money.

4. Keep that credit card debt at bay. To pay down credit card debt, and consolidate debt overall, get ahead of the game and free up money in the future for saving or other expenses. This can be done by paying down one or more high-interest debts.

5. Retire by the fire. You can start or add to your retirement savings plan and save more on your bonus by deferring taxes in your employer’s retirement plan or by opening/contributing to an IRA. If you keep this in mind when saving, you’ll be kicking your feet up fireside in no time!

Now that you have the 2018 saving know-how, what are you going to do with your year-end bonus? With so many options to save your money away for the future, it’s important to feel enabled and not weighed down by these financial planning tips. Remember, many of these options can be, and should be, used in tandem throughout 2018. However, if you still need help deciding the best way to grow your money in 2018 and beyond, Affinity representatives are great resources when weighing your options.

Visit to schedule an appointment or call 800.325.0808 for personalized assistance.

This information is for informational purposes only and is intended to provide general guidance and does not constitute legal, tax, or financial advice. Each person’s circumstances are different and may not apply to the specific information provided. You should seek the advice of a financial professional, tax consultant, and/or legal counsel to discuss your specific needs before making any financial or other commitments regarding the matters related to your condition are made.   

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