Five Smart Financial Moves

Earning a bonus can be an exciting financial boost. Deciding how best to use it could prove challenging. You best know your own financial situation. While there is no one-size-fits-all answer, here are five tips on what you can do with a bonus.

1. Pay Down Debt

   Paying down debt whenever possible is always a smart money move. It’s a good idea to start with higher-interest-rate debt. Paying down debt can save you money on interest and improve your overall financial health.

2. Build Your Emergency Fund

   You can’t predict the unexpected, but you can plan your savings for it. An emergency fund is crucial for stability. Using a bonus to add to an emergency fund can provide a little extra peace of mind.

3. Invest in Your Future

   Consider investing your bonus in a retirement account such as a 401(k) or IRA. Your wealth could grow over time and earn compound interest. A small difference now could make a big difference later. For more short-term investing, consider a Certificate of Deposit (CD).

4. Save Toward a Large Purchase

   If you are planning a large purchase in the future, like a home or auto, setting aside your bonus can help you reach your goals faster. You can use it toward a down payment or reduce the total amount you need to finance, saving you money on interest in the long run.

5. Treat Yourself

   Being fiscally responsible is a top priority. It’s also okay to reward yourself once in a while. Whether it’s a special treat, a fun gadget, or a weekend getaway, sometimes you just want to enjoy the fruits of your labor. Consider treating yourself. Just don’t go overboard.

Only you can decide the best way to use funds from a bonus. By considering these options as a starting point, you can start planning your next move.

Ready to let your bonus money work harder for you? A CD from Cadence Bank offers a safe and risk-free way to grow your savings. Visit CadenceBank.com/CDs to get started!

Sources:
https://www.businessinsider.com/financial-planner-never-recommends-bonus-2024-12
https://www.msnbc.com/know-your-value/career-growth/7-money-moves-every-woman-make-2025-rcna185867
https://www.forbes.com/sites/truetamplin/2023/12/28/8-tips-for-transforming-your-year-end-bonus-into-future-wealth

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.