IF YOU GOT A $10,000 BONUS, WHAT WOULD YOU DO?

Updated: Sep 17, 2018

HOW TO PLAN YOUR WINDFALL FINANCES


What do you do with your bonus?


Before you start spending it all remember these key facts:


1. You will get less than $10k after payroll taxes are deducted.

2. Set aside something for the tax man – Depends on your tax situation. Here's a suggested order of use: a. Fill up your emergency cash

b. Pay down credit cards – Start with the highest interest rate and work your way down

c. Pay down other debt due in the short-term, i.e., within the next 12-months

d. Pay down other high cost debt, perhaps a personal loan or car loan e. Pay down student loans f. Pay down mortgage. Invest in wealth building assets h. Consider a donation to your favorite charity. Buy someone you love a gift. Watch that Broadway show that you always wanted to see – Make sure to keep this expense to no more than 10% of your take home amount of bonus. So maybe not Hamilton 😊, at least not this time.

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