How to Spend Your Performance Bonus

It’s bonus time of year and many of us are fortunate to get sizable chunks of money. But how many of us are looking at investing our bonus? Less than the amount who are pricing out new cars and vacations. So here’s this month’s Buck Builder challenge…

If you get a bonus, buy financial independence.

First, if you have non-mortgage debt, you put all of you bonus against that. No you don’t deserve something new just because it’s a bonus. You already had something new that created debt and you’re still paying that off.

If you don’t have any debt, except your mortgage put at least 80% of your after tax bonus into saving for retirement or paying off your mortgage. Then buy yourself a little something, or better yet an experience.

If you don’t get a bonus then sign up for the newsletter and get ready for next month’s Buck Builder Challenge.