Genius Ways to Spend Your Holiday Bonus

If you work at a company that doles out holiday bonuses, count yourself lucky. Make the most of these extra funds by getting a plan in place. This time around, put those hard-earned dollars where they can do the most good.

Invest in your future
In addition to building your retirement fund, get the benefit of a tax break on deposits made to your 401(k), health savings account or traditional IRA. Depending on your age and which fund you want to add to, there may be limits or other qualifications. Talk with a financial advisor about your options to make an informed decision.

Reduce your holiday debt
Exercise some damage control and enter the new year with a little less debt. Paying down, or paying off, your high-interest credit card debt can really make a difference. Even just one extra payment before your bill arrives can significantly reduce the interest you’ll be charged.

Build your emergency fund
Most financial advisors will tell you to keep 3­–6 months of expenses in an emergency fund. They’ll also probably tell you to build your emergency fund before you contribute to your retirement account. Knowing you’ll be okay financially through a job loss, home renovation or car repair is well worth giving up that piece of autographed sports memorabilia!

Invest in education or boost your professional skills
Gain the additional earning power for which you’ve been looking, whether you’re eyeing a promotion at work or considering breaking into a new field.

Invest in your health
Pay for services that promote good health, such as organic foods, a personal trainer, gym membership or nutritionist. These investments can mean fewer medical bills and health problems in the future.

Increase the value of your home
That big screen TV would definitely look amazing in your den, but spending your bonus on something that will continue to have value is a much better choice. Make necessary home updates or repairs to immediately improve your quality of life and add long-term value to what may be your largest asset.

Buy some peace of mind
A recent study by Caring.com found that 78% of millennials and 64% of Gen Xers have no will or living trust. Estate planning includes documents like your will, power of attorney and healthcare proxy. So, for such important decisions, why are so many people putting it off?

According to Caring.com, 46% hadn’t gotten around to it and 29% said they didn’t have enough assets to leave to anyone. Assets aside, these documents can also make clear things like who you want to raise your children in the event of your death, who should make your medical decisions and what your wishes are for burial and funeral planning.

Save some for you
You don’t have to put all of your bonus toward these practical endeavors. Enjoy life and celebrate a job well done while saving for your future. Take a little bit and do something fun—then live your life reaping the benefits of everything you’ve saved!

Have you considered a certificate account? If you’re not sure what you want to do with the money or don’t need the funds for several months, a certificate account may be just the ticket! Earn higher dividends than a traditional savings account while your money chills in this account anywhere from six to 60 months. Mountain America Credit Union even has something we call Growth Certificates.* This account lets you add money to the account throughout the life of the certificate. What a great way to save for something special!

*Federally insured by NCUA. Early withdrawal penalties may apply.