Christmas is the time for giving, and what better way to show your appreciation for the year than by splurging on yourself with your Christmas bonus? Whether it’s a small amount or a large sum, there are many ways to make the most of it. Whether you choose to invest in yourself, give to charity, or save it for a rainy day, there’s something to be said for making the most of your bonus. Here are some of the best ways to spend your Christmas bonus, whether you’re looking to save, invest, or just have some fun.
Invest in yourself
When people think of spending their Christmas bonus, they often think of spending it on luxury items, experiences, or even gifts for others. But there are plenty of investments that are worth making. Whether it’s going back to school, learning a new language, or studying for an industry-recognized certification, investing in yourself is the gift that keeps on giving. Whether you decide to take an online course or attend a university, there are so many ways to increase your skillset and open new doors in your career — and your wallet, too.
Another great way to invest in yourself is to go to the doctor. Many people wait to visit the doctor, but there are medical visits that are worth the cost. Visiting a doctor for a full checkup, including blood work and any necessary screenings, is a valuable investment. A doctor can catch any health issues, such as high cholesterol or high blood pressure, before they turn into something more serious. A doctor can also recommend any necessary health screenings and vaccinations, such as the flu shot. Investing in your health now can help prevent any long-term issues down the road and save you money in the process. Get a massage, a standing desk, an at home gym, or anything else that you may need to perform better throughout the year. Now is the time to step back in invest in things that could help you feel healthier or happier throughout the year.
Invest in your home
If you’ve been thinking about making some upgrades to your home, now is the perfect time to do so. Whether it’s a new couch or bed, or installing new flooring or appliances, now is the time to invest in your home. The best part of investing in your home is that it’s a long-lasting investment and it can increase the value of your home. Whether you decide to hire a contractor or do the work yourself, there are plenty of home upgrades that are worth the cost.
If you’re a handy person, you can do some of the upgrades yourself, like replacing flooring or installing new cabinets. If not, it’s worth investing in an upgrade you won’t want to do twice. Other upgrades worth the cost include adding a heating and cooling system, a new roof, and new appliances. These upgrades are long-lasting and can increase the value of your home, which is a bonus.
Give to charity
It’s easy to get caught up in spending your Christmas bonus on yourself, but it’s also worth considering giving to charity. Charity gifts are a great way to give back to your community, and the more money you have, the more you can give. While you can always donate money to charities, there are other ways to give back. If you have a skill you’ve been wanting to put to good use, volunteering at a charity is a great way to do so. If you don’t have a skill you’ve been wanting to put to good use, volunteering at a charity is a great way to find one. Volunteering is a great way to meet new people, learn new skills, and give back to your community. If you want to give back, but aren’t sure where to start, there are plenty of charities that accept donations and volunteers.
Invest in your career
Another way to spend your Christmas bonus is to invest in your career. Whether it’s taking an online course in your industry, signing up for an executive mentorship program, or taking an industry certification course, these are all great ways to invest in your career. A certification is an investment in your career that pays off quickly. These programs can help you advance in your career, learn new skills, and even open up new opportunities within your company.
If you don’t have time to take an industry certification course, there are plenty of online courses that can help you advance in your career. Online courses allow you to learn at your own pace, which makes them ideal for people with busy schedules. There are courses on a wide range of subjects, including management, marketing, and sales. Whether you want to advance in your current career or switch industries, there is likely a course worth your time.
Invest in passive income
If you’re looking to make a major investment, now is a great time to do so. As long as you are mindful of the amount of money you have available to spend. A great way to make the most of your Christmas bonus is to invest in passive income. Investments like stocks, real estate, or businesses are great ways to make money while you sleep. While these investments are always risky, they are worth the investment if you know what you’re doing. If you don’t know what you’re doing, it’s important to team up with a financial advisor. A financial advisor can help you decide what investments are worth your time, money, and effort. Additionally, a financial advisor can help you determine how much you can afford to invest and what percentage of your income is a good amount to put towards your investments.
Invest in long-term savings
Your Christmas bonus is a great time to invest in long-term savings. While you can always invest in long-term savings, it’s worth investing in long-term savings while you have a large amount of money at your disposal. Long-term savings include things like a retirement account like a 401(k) or an IRA, or a health savings account. While it’s always good to invest in long-term savings, it’s even more important when you have a large sum of money at your disposal.
Your Christmas bonus is a great time to invest in long-term savings because you have the funds available now, but you probably don’t need to use it right away. Investing in retirement accounts at a young age is an excellent way to ensure that you’re prepared for retirement later down the road.
Retirement savings aside if you have ambitions to purchase a home or a car soon making large contributions towards those goals with bonuses can be a great hack to fully funding those sooner rather than smaller contributions throughout the year.
Invest in experiences
Another way to spend your Christmas bonus is to indulge in experiences. While it may not be a traditional investment, experiences are priceless. Experiences can range from a tropical vacation to attending a music festival. There are plenty of ways to spend your Christmas bonus on experiences that will last a lifetime.
If you want to spend your Christmas bonus on experiences, it’s important to be mindful of how you can do so responsibly. While it’s nice to treat yourself, it’s important to be careful not to go overboard. For example, you may want to invest in experiences that can be shared with friends and family, like a vacation. This way, you still get to enjoy the experience, but the cost is spread out between the people you travel with.
Invest in hobbies
If you have a hobby you’ve been wanting to invest in, now is the perfect time to do so. Hobbies are great ways to relax, unwind, and have fun. While investing in hobbies is always a good idea, it’s especially important when you’re spending a large sum of money. If you want to spend your Christmas bonus on a hobby, make sure you’re spending wisely.
If you want to spend your Christmas bonus wisely, it’s important to do research on the hobby. For example, if you want to invest in photography, it’s important to learn how to do so properly before shelling out money for expensive equipment. This way, you’re making sure you’re spending your Christmas bonus wisely and you’re investing in a hobby you’ll actually use.
Save it for a rainy day
Your Christmas bonus is a great time to save for a rainy day. Whether it’s for an emergency fund, a car repair, or even a vacation, rainy day savings are important to have. While it’s always good to have rainy day savings, it’s especially important when you have a large amount of money.
If you want to make sure you’re putting your Christmas bonus towards long-term savings, it’s important to set a strict budget. Establish a budget for how you want to spend your Christmas bonus, and make sure your spending falls within that budget.
An emergency savings fund is essential to avoid taking on high interest debt in the case of an emergency. First consider building up a savings of at least $1,000, then 3 months worth of expenses, and finally build up to 6 months worth of expenses. You can use your emergency savings for things like appliance repairs, car repairs, job loss, or medical emergencies. You won’t always need these funds, but when you do you will be very thankful that you won’t have to take on high interest debt to cover that emergency that popped out of nowhere.
Spend it on something special
Planning on getting engaged soon or maybe have a wedding come up? Save up for that special ring or begin saving for that wedding. There’s nothing worse than saying “I do” to only have a large personal loan on the other side, or have to finance the purchase of an engagement ring. A bonus can be a great way to make these special moments in life not attached to debt.
As you can see, there’s plenty of ways that a Christmas bonus can be used. Do what’s best for you and your financial goals, but remember to take care of the most important things first - high interest debt!