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THE BEST WAYS TO SPEND YOUR BONUS
When we’re seeking a new job, most of us will now factor in benefits packages that include everything from private healthcare to generous holidays and, of course, all-important bonuses. After all, the job market is increasingly competitive, and these things can both help to distinguish the best employers and ensure the happiest financial situations.
Luckily, most modern employers are aware of this, meaning that bonuses up to an average of £2k are now pretty standard across the job market, while the best employers may even extend those bonus benefits with things like the welcome bonus offers you can expect when considering, say, care home jobs as offered by companies like Agincare careers. All of this is great news for your bank balance. Or at least, it can be if you take the wisest routes when it comes to bonus spending.
While there is, of course, some merit in using a bonus for treats like vacations instead of your wages themselves, the reality is that there are far wiser ways to make the most of this money, the best of which we’ll consider here.
1. Apply the 80/20 Rule
Given that your bonus is an extra income, there’s nothing wrong with treating yourself using this money. In fact, doing so is perhaps the best way to enjoy that bonus in the now. However, to ensure that you don’t spend the whole thing in one go and then wonder what you even spent it on, it’s always worth applying the 80/20 rule. By making sure you only spend 20% of what you receive, you can therefore enjoy the best of both worlds, ensuring a well-deserved treat, but also avoiding the guilt of wasting too much money.
2. Boost Your Pension
With the remaining 80% of your bonus, it’s worth considering options with long lasting value, the most obvious of which is to simply use this money to boost your pension. Most employers will allow you to make a one-off additional payment, and may even match some of those additional contributions. Without necessarily impacting your everyday spending, this then ensures a far more lucrative pension package in the long term, particularly if you use your bonus here every year.
3. Find Forms of Investment
Given that it’s extra money that you can afford to play around with a little more, it’s always worth considering forms of investment for your bonus cash. Most obviously, wise investments in the stock market can end up proving lucrative, though you may find that you need a higher sum than your bonus affords to build an investment portfolio in some instances. Still, other forms of investment, including home improvements or expenses paid on things like additional training/out-of-job side hustles can also prove beneficial for ultimately helping you to enjoy larger returns later down the line.
Bonuses can be brilliant as long as you make sure that you’re putting this additional cash to good use by wising up about the best ways to spend this money!
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