According to this article over at Yahoo 80% of employers are offering bonus incentives this year as opposed to only 51% in 1991. This means a majority of employees will be receiving some sort of additional incentives this year. So are you receiving any sort of bonus this year? If so, what do you plan on spending it on?
The article suggests three areas to target for this windfall:
- Emergency fund
- High interest-debt
This will be my first year receiving a bonus, which couldn’t come at a better time. Even before seeing the list above our plans were to sock a little bit back into savings which recently took a big hit thanks to emergency car repairs. The rest is most certainly going towards debt. That isn’t to say every penny will be used this way as some will be spent on ourselves. I have no idea what it may be yet, but 2006 was a very frugal year for us with very little in the way of “fun” expenses. We deserve to enjoy a little bit of it.
So, I just wanted to ask the readers if they are receiving a bonus and what the plans for that money are. Anyone planning on blowing it all on a new home theater setup? New car? Or is everyone being fairly conservative and paying bills with it?
Author: Jeremy Vohwinkle
My name is Jeremy Vohwinkle, and I’ve spent a number of years working in the finance industry providing financial advice to regular investors and those participating in employer-sponsored retirement plans.
Another possibility is to earmark it for an early January CY2007 contribution to my Roth IRA (anticipating that I'll have some small measure of earned income later in 2007).
No yearend bonus here either, in the temporarily early retired world. To answer the question though, if I were to receive one I'd add it to my high-interest-rate bank account(s), i.e. give myself a monthly raise.