It's always a nice surprise when you get a big holiday bonus at work. I wasn't expecting a bonus but am definately happy and the money is needed. This year I got $3,300 for my bonus which amounted to just under $2,000 once taxes were taken out. I also didn't know that they would take out 5% to put into my 401k but I am happy they did. This adds an extra $160 or so to my 401k and more if they match with the usual match. The bonus money that I recieved in my bank account is going to be used for the upcoming wedding (October 2008). I immediately transferred the money into our joint money market account where we have automatic savings going each month to try to save up some for the different wedding expenses. The fiance has paid all of our down payments so this has me pretty happy that I can finally contribute something to the wedding. She is the one of the two of us with the most cash saved up.
There are many different things to do with that nice holiday bonus you recieve. I find it interesting to hear how the different people I work with plan on using thier bonuses.
Thier is CZ who has plans to use her bonus for a vacation for her and her boyfriend. I think this is a good idea because vacations are good experiences and not a waste of money. However, since she just bought a house with zero down and sometimes complains about money, I think I would look to save the money for an emergency fund or put towards the house.
Next there is RP. She complains all the time about having no money. I find it amusing because she wastes money all the time. Recently she just bought 6 video games for example. Another example is the gym membership for a year that never gets used and the glider excersice machine recently purchased that does not get used. I haven't heard exactly what they plan on blowing her bonus on but I am certain it is not going towards savings.
Last thier is CW. She seems to be the more financially smart of the people I work with. She is a fan of Dave Ramsey and sometimes refers to her budget so I know her and her husband work on saving and sticking to a budget. Since her husband also works here I expect they got about double a bonus. She said they are using thier bonuses to pay for a new needed roof for thier house. I would hate to spend my whole bonus but if it is needed then it will be worth it.
My boss of course asked me what I was going to do with my bonus. She thinks it should be spent on something nice for myself. I believe in saving. Last years bonus went into an IRA. This year I will use it to pay for the wedding so we don't need to take on any new debt. I am a little disappointed that I don't get to put some towards savings or current debt, but I am pleased that I finally get to put some towards the wedding and feel like I have contributed.
What will you do with your bonus if you get one?