You can use this lump sum bonus amount to settle or partially repay a loan. Prioritize payment of unsecured loans such as personal loans and credit card fees, if applicable. Once this is over, focus on secured loans such as home loans to reduce the interest burden.
You can use your bonus to fill investment gaps in your financial plan. Most of our savings are earmarked for long-term goals such as retirement, children’s education, etc. However, not all of us are able to achieve these goals easily. We may have to put some of our goals on hold until there is a significant salary increase or existing debts have been satisfied.
Invest in insurance
Investing in insurance coverage is one of the prudent ways to invest bonus money. The insurance ensures his own future as well as that of the family. Moreover, it helps you to get a good amount when the insurance policy comes to an end.
Random but prudent spending
If you’re not deploying that money in investment tools, invest your bonus in essentials, such as learning a new skill or language, home upgrades, level of essential appliances or any electronic items your family needs.
Investing in gold is another option available to people during the Diwali period. They have both gold investment options, dematting and physical gold.
Use the bonus for short-term commitments
If you are planning to buy a house or a car, the bonus money can help you later. It is therefore advisable to set aside the lump sum that can help you while paying the down payment. You can also save for short-term goals such as vacations or financing a course. Other financial commitments like investing in an apartment, repairing or renovating can also be given