Year End Bonus – Save It or Splurge?
There’s something about receiving a year end bonus that brings sweet relief.
If you receive a tax refund or bonus from your employer for good performance, what will you do with the money?
The holidays are a time to splurge, and year end bonuses offer the world’s most perfect timing to do just that…but (here it comes…) should you?
If you’ve wracked up a bit of credit card debt because of the holiday splurge factor, a smarter way to utilize your temporary cash flow might be to pay the cards off – or at least, pay them down. When you do, you’ll be able to reduce the principal amount of the balance and minimize the corresponding interest as well. It’s a sacrifice on your part, but a sacrifice worth making because you minimize your chances of swimming in a pool of debt. And friends, a pool of debt is no way to start off the New Year.
The key here is to take it one step at a time. Repaying your credit cards (or any loan, for that matter) can’t always happen overnight, but always remember that every payment matters. So this year, pay it off so you don’t have to it pay later. Your July self will thank you.