There are numerous businesses today that utilize a bonus or commission-based compensation program. Thanks to this scheme, individuals receive salary bonuses as a reward for their efforts. This lump sum usually comes around during the holiday season.

While many individuals tend to allocate their check towards Christmas gifts, vacations, and even splurging on the latest gadgets, there are other worthwhile endeavors to which you can direct your salary bonus. Although the temptations are undeniably difficult to resist, allocating your money towards investments for yourself and your future matters more. After all, we are all looking forward to a nice retirement, right?


So, rather than buying things that can wait, it might be better to invest in yourself. This means setting aside a certain amount or percentage and putting it towards your future. You can learn more about your investment options as you read on.

Invest Your Salary Bonus

Increase Your Retirement Contributions

You may not want to think about retiring or stopping their career anytime soon, especially not at the prime of your life. While this may be a hard pill to swallow, bear in mind that you are not getting any younger and thinking about your future is essential.


Though your employer makes contributions towards your 401(k), you must also put in the effort to increase your own savings. Using your salary bonus this upcoming holiday season is a great way to boost your contribution. Not to mention, you’ll be setting yourself up for life with such valuable provisions early on.

Invest In Life Insurance

Life insurance is another good investment primarily because it offers more than just your loved ones getting beneficiary claims after you are gone. These days, there are insurance policies that provide coverage for a number of illnesses or diseases.

Depending on your needs and the flexibility of your insurer, you can easily get your hard-earned money when you need it. The upside to availing life insurance at an earlier age is paying a more affordable premium, claims for your family, and additional protection. For all of the reasons above, using your salary bonus to purchase life insurance is a great idea. What more can you ask for?


Start An Emergency Fund

Most people nowadays tend to live in the moment that they forget to think ahead and plan for their future. If you’re anything like this, assigning a portion of your bonus towards your emergency fund will be greatly in your favor.

An emergency fund allows you to prepare for the unexpected. Whether it’s losing a job, incurring medical expenses, experiencing car troubles, or even needing house repairs, you know you’re covered with an emergency fund under your name. The general rule of thumb for these savings is that you should have six months’ worth of funds stored. However, anywhere from 3 months’ or more worth of savings is also acceptable.


Use your salary bonus wisely and invest in yourself and your future as early as you can. This way, you can get the peace of mind you deserve and have your financial goals in check one step at a time. What do you think of these suggestions? Do you have any more sensible ideas for using your salary bonus? Let us know!