Smart Tips for How to Use Your Holiday Bonus or End-of-Year Raise
Provided by COUNTRY Financial Portfolio Manager, Chelsie Moore
BLOOMINGTON, Ill. – Did you receive a holiday bonus from youremployer, or are you getting a raise this year? If so, congratulations! Take simple steps now to make that new income work toward your financial goals with these tips from Chelsie Moore of COUNTRY Financial.
- Start with paying down debt. “Begin with any debt that has a high interest rate, like a credit card,” said Chelsie.
- Establish an emergency fund if you don’t already have one. “If you already have one, but it’s not enough to cover 3 – 6 months of expenses, add to it with your bonus.”
- Create a budget – know how much of the new income you want to save vs. spend. “This will allow you to enjoy a portion of your hard-earned bonus or raise, and still take advantage of saving some too,” Chelsie stated.
*Bonus tip: flip your frame of mind: “Normally people thing of their cash flows as: Income – Expenses = Savings. Flip the equation around so you’re thinking of it in terms of Income – Savings = what you can spend.”
- Pay yourself first. “If you received a bonus, consider saving it now,” Chelsie said. “For a raise, increase or start regular auto-deposits at the time you receive your paycheck. You didn’t have the money last year, so save it before you get used to spending it! A good place to save may be an employer sponsored plan, especially if you’re not already maxing your employer’s match if one is offered. You could also auto-invest into a retirement account like a Traditional IRA or Roth IRA.”
For more tips on saving, spending andinvesting, visit www.countryfinancial.com.
Chelsie Moore is a Portfolio Manager at COUNTRY Financial in Bloomington, Illinois.
About COUNTRY Financial
COUNTRY Financial is a marketing name for COUNTRY Life Insurance Company®, COUNTRY Mutual Insurance Company® and their respective subsidiaries, located in Bloomington, IL. COUNTRY Financial serves about one million households and businesses throughout the United States and offers a wide range of insurance and financial products and services.