There is nothing wrong when the word “bonus” is used in a sentence.
When it comes to money this is even better.

According to Zippia.com 33% of companies in the U.S. offer year-end bonuses and 40.5% of all U.S. workers have access to nonproduction bonuses.

In addition, with Great Resignation, many companies are offering sign-on bonuses to attract new talent.

So this leads us to the point of managing your employer retirement plan including 401(k)’s, Roth 401(k)’s, 403(b)’s and 457(b)’s.

When receiving a bonus, check with your HR department to see if the are subject to the automatic withdrawal arrangement for your retirement plan.

If so, it is important to factor this money in your budget if you didn’t intend for money to be withdrawn.

The easy way to prevent this, is to adjust your withdrawal amount to 0% or as desired for that pay period and then modify it back to normal arrangement.

On the other hand, if you can afford the additional money in your account, this only benefits your future.

Keep in mind that you should strive for a 15% gross investment goal from each paycheck which typically should put you in good shape for future retirement.

Additionally, if you have debt that is charging you more in interest than what you are making on investment income, then you are actually losing money so budget this accordingly.

The bottom line is that you should strive to treat bonuses as bonuses meaning this money is not accounted for in your budget so that you can take advantage of the extra money.

Website:

https://www.somethingonmymind.net/

Social Media

https://www.instagram.com/somm.podcast/

https://www.youtube.com/channel/UChec5qcZBcGkIhUU3belNDw

https://www.tiktok.com/@somm.podcast?lang=en

https://www.facebook.com/somm.podcast

https://twitter.com/Somm_podcast