5 smart ways to put your cash to use
As many as 80% of employers offer some kind of year-end bonus to their employees. If you’re one of the lucky workers who will receive a significant amount of cash at the end of the year, here are some ideas for what you can do with it:
Pay off credit card debt. Don’t let debt linger if you have the means to get rid of it. Paying off a credit card with a $5,000 balance (the average debt many of us carry these days) could save you about $3,100 in interest if you are currently making only the minimum payment.
Fund your retirement. Boosting your retirement account can mean better living in your golden years—or even starting those happy times a bit sooner, especially if you’re not currently maxing out your contributions.
Create a rainy day fund. Experts recommend that we should have anywhere from three- to six- months’ worth of expenses socked away in an emergency account. If you haven’t funded a rainy day account yet, or if yours is a little anemic, that bonus is a great way to get back on track.
Start saving for a major purchase. If you’re planning to make a large purchase, say, a new car, adding to the kitty can mean achieving your goal that much sooner.
Have a little fun. Don’t deny the benefit of using a small portion of your bonus to do something fun, like getting away for the weekend or splurging on a fancy dinner out with the family.
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