It’s easy to think of all the things that you could buy with the extra money from a bonus or promotion, but it’s important to wait until you have the money in hand before you start spending it. Your bonus or promotion amount might change because of taxes or other unforeseen reasons and the money you’ve already spent might become debt. While it’s reasonable to want to reward yourself after a bonus or promotion, you should consider investing some of that money as well.
If you’ve been living paycheck to paycheck, saving and investing may not be an option you’re used to thinking about, but receiving extra money is an excellent time to start. If you have any debts, this would be the time to start paying them down. You may be planning to go back to school, purchase a new car, start a family, or retire. Whatever it is, saving now will allow you to realize your goals later on.
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