Having a sufficient income that satisfies your needs is a privilege. Not everyone can land a job that actually pays enough for all their expenses. Research reveals that wage is the top reason why Americans are not satisfied with their jobs. The study was conducted by online employment company Zippia.
If you’re earning enough to meet your needs and wants, you may have an idea of how to manage your finances. But since your salary is enough, this may affect the management of your bonuses. The same goes for your incentives.
You’re allowed to spoil yourself using your bonus and incentives. However, you should remember that these compensations can be spent on something better. See how you can use these additions to your salary wisely by following these tips.
Spend it on benefits and insurance
The greatest thing you can invest in is your future. Put your bonuses and incentives in useful benefits that you can utilize years from now. One of them is a retirement plan. If your company offers a 401(k) retirement plan, you should take advantage of it. On the other hand, you can discuss your IRA options with your trusted bank.
Another benefit that you can invest in is a health savings plan. This way, you can prepare for any medical emergency that may cost you a lot. Health savings are very beneficial, especially if you have a family of your own.
Save some for house preservation
Home damages are one of the most expensive to finance. But they are completely avoidable if you know what preventive measures to take. So before damages actually happen, you have to reduce the risks of them happening. Say your air conditioning system. You don’t wait for it to get damaged. You should call HVAC maintenance services to have a scheduled check.
This way, you’re going to save a lot rather than having it fixed when it’s already broken. The biggest roadblock that prevents homeowners to fix house damages is the budget. So for you not to touch your main salary for this purpose, you can use your work bonuses instead. Your incentives are perfect for home preservation such as lawn mowing, landscaping, and many more.
Put them in a college fund
If you have children, one thing you know you should save for is their educational funds. Funding college savings can help you avoid the pressure of supporting your children once they get into college. Financing their education in real-time can be stressful. It’ll make you do all the exhausting budgeting. The only way to prevent this is by allotting some of your bonuses to your children’s college fund. Open another savings account specifically for this purpose. Stash whatever incentives that came with your direct deposit. You should have them transferred immediately to the college fund savings. Do this before you spend anything from your salary.
Finance your next travel
Fulfilling your dreams of stepping foot somewhere else could be attainable. That is if you know where to put your incentives and bonuses. Use these funds to save up for your next travel and adventure. It’s better to use your bonuses for this purpose rather than getting a chunk of your hard-earned basic wage. This can also give you control over your wanderlust. It’ll make you limit your travel since you can only do it if your bonuses are enough.
This little practice can save you a lot of money. It’ll teach you to not spend your main salary on leisure and have separate funding for it. The bottom line is, you get to pay your bills on time and have a vacation only if your funds are enough.
Spoil yourself a little
Most of the things mentioned above are all about spending your bonuses wisely. But this doesn’t mean that pampering yourself using your work bonus isn’t wise spending. Spoil yourself with little purchases that you know won’t affect your savings. Compute your money and see if you’re able to afford that phone you’ve always wanted. Get yourself a present for your birthday. A new pair of shoes or a brand-new hand mixer won’t hurt your incentive much.
These are just little things that you’ve always wanted to buy but didn’t get the chance to. Now that you’ve worked hard and got the incentive, this may be the perfect time to add those items to your cart. Don’t hesitate to click that checkout button. You deserve every single cent of that work bonus.
One of the best traits a person could have is being financially responsible. This will ease all the challenges of being an employed adult. It’ll be a great help in shaping your future. If you know how to use your main salary, you should also treat your bonuses and incentive similarly.