Educational
10 Ways To Use Your Holiday Bonus Wisely
January 1, 2025
If you received a “thank you and good job this year” holiday bonus from your employer, it’s essential to think carefully about how you’ll use this extra cash. Whether you’re expecting a small token of appreciation or a more substantial sum, Peoples Savings Bank is here to help you make the most of your holiday bonus.
1. Pay Off High-Interest Debt
If you have outstanding debts with high interest rates, consider using your holiday bonus to pay them down or pay them off entirely. This can save you money in the long run and free up more of your monthly income for other expenses.
2. Invest in Your Future
If you’re already on top of your debt and emergency fund, consider using your holiday bonus to invest in your future. This could mean contributing to a retirement account, such as a 401(k) or IRA, or investing in a tax-advantaged college savings plan. Check out our easy-to-use calculators to see exactly how much your holiday bonus will help your retirement fund, click here!
3. Take Care of Necessary Expenses
If you’ve been putting off necessary expenses, such as car maintenance or home repairs, consider using your holiday bonus to take care of them. This can help you avoid bigger costlier problems down the line.
4. Take a Course or Get Certified
Investing in your education or professional development can pay off in the long run. Consider using your holiday bonus to take a course or get certified in a new skill. Or perhaps there’s been a fun but pricey hobby you’ve wanted to pick up like home brewing or sewing. Use your bonus to buy all the necessities to get started!
5. Save for a Big Purchase
If you’ve been eyeing a big-ticket item, such as a new TV or a down payment on a house, consider using your holiday bonus to save up for it. This can help you avoid going into debt when you’re ready to make the purchase.
6. Treat Yourself (Responsibly)
Let’s be real – it’s okay to treat yourself to something nice every now and then! Just be sure to do so responsibly and within your means. Consider setting aside a small portion of your holiday bonus for a fun experience or purchase.
7. Home Improvements
Investing in your home can increase its value and improve your quality of life. Whether it’s a small renovation or a major upgrade, using your bonus for home improvements can be a wise choice. Check out our home equity line of credit options to help finance those larger projects! Home Equity Line of Credit
Here’s more info on valuable home improvements: What Raises Property Value The Most? Top Home Improvements To Boost Your Investment Peoples Savings Bank
8. Give Back
If you’re in a comfortable financial position, consider donating a portion of your bonus to your charity or local non-profit. Giving back can be incredibly rewarding and make a positive impact on your community.
9. Build Your Emergency Fund
Having a cushion of savings can provide peace of mind and financial security. Consider using your holiday bonus to boost your emergency fund, which should cover 3-6 months of living expenses.
10. Consult a Financial Advisor
Finally, if you’re not sure what to do with your holiday bonus, consider consulting a financial advisor. They can help you create a personalized plan for using your extra cash wisely.
Team Up With Your Local PSB
Congrats on the holiday bonus, you deserve it! Whether you can finally update your bathroom, treat yourself to an all-inclusive spa, or put it away for your future self—it’s your money and you worked hard for it, so take charge and spend it how you see fit.
Feel free to reach out to us at Peoples Savings Bank for more tips and guidance on managing your finances. We’re committed to helping you achieve your financial goals!