What To Do With A Pay Raise And A Bonus?
It’s that time again at work: bonus time!
A couple of months back we had our reviews (which I did pretty well in, if I do say so myself) and now is the time we (finally!) get the fruits of all our hard work.
I received just over $2000 in bonus money and a nice pay raise which works out to be about an extra $60 per fortnight extra in my hand.
This means that not only do I have a large sum of money coming my way, but also an extra $60 in my budget each fortnight.
So, the question is: what do I do with this extra money?
To be honest I have already spent some of the bonus money on clothes. I hate shopping for new clothes and so I rarely do it - maybe twice a year - but it’s been over 12 months since my last good shop so I didn’t feel too bad spending $300 on some new clothes. I figure over a year, that’s a mere $11.50 per fortnight.
I haven’t 100% decided on what to do with the bonus money, but I am planning to head overseas next year for an extended period and so I am leaning towards placing it a high-interest savings account and letting it compound for a year (along with my savings).
The extra $60 I am getting is another issue, but is pretty much a no-brainer. With nothing to spend it on there is really only one choice: save it. And that is exactly what I will be doing with it - adding to my savings.
Which takes my savings percentage of my pay to just over 30%!
It is a good feeling being able to receive a pay increase and not have anything I need to spend it on. And since simplifying my budget I have a much better grasp of how much I need and how much I have left over to save.
What do you do with your bonus money and pay raises?
Image credit: solarnu
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Oh, if I had some extra money I would spend it on various even unnecessary things. Frankly speaking, I’m a great spender and if I have some money I will find what to spend them on.