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Got a Bonus at Work? Here’s What to Do First
Experts say workers can split bonuses into savings, debt repayment and fun spending using a 50/30/20 formula.
- A Reddit poster recently asked how others plan to spend work bonuses, with responses ranging from paying off debt to splurging on luxuries like scarves and styling appliances.
- Skip Skolnik, senior planner and founder at Skolnik Retirement Solutions in Amherst, Ohio, recommends using bonuses to build a safety net covering two, four, or six months of expenses.
- Experts suggest allocating 50% of bonuses to savings or investments, 30% to high-interest debt, and 20% to fun spending, mirroring the 50/30/20 budgeting framework.
- Kelly Gilbert, fiduciary advisor and owner of EFG Financial in Grand Rapids, Michigan, states, "Where are you in your bills, your savings? After that, it's fun."
- Bonuses differ from other windfalls and require tailored strategies; NerdWallet, Inc. emphasizes this guidance is for educational purposes only.
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13 Articles
InsideNoVA.com+12 Reposted by 12 other sources
Got a Bonus at Work? Here’s What to Do First
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.A Reddit poster…
Coverage Details
Total News Sources13
Leaning Left0Leaning Right2Center5Last UpdatedBias Distribution71% Center
Bias Distribution
- 71% of the sources are Center
71% Center
C 71%
R 29%
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