Instead of regarding a bonus as “extra money” that falls outside traditional income and can therefore be spent freely, investing your bonus will not only reduce stress, but could also pay handsome dividends
If your household budget is under pressure, the best thing to do is to use a bonus to reduce the pressure. The less you owe, the less you have to pay out of your hard-earned salary at the end of every month. In fact, using extra money wisely means that you can think about starting a savings plan for the benefit of the family.
There are several ways to put a bonus to work for you:
* Pay off debt. Pay off debts that attract the highest interest first. Usually this means tackling credit card debt first. Credit card interest can be 18percent a year or more, so by reducing your balance - or preferably getting it to zero - you will be saving money.