7 Strategies To Use Your Bonus Income For Financial Security

Outlook Money

Reward Yourself

Before you begin financial planning, set aside a small portion to treat yourself and your family to your annual bonus.

Clear High-Interest Debt

Pay high-interest debt to improve your financial position and free up cash flow for investments and savings for the future. 

Build Emergency Fund

Build an emergency fund for three to 12 months’ expenses to cover any financial difficulty.

Invest In Skill Development

Invest in skills development to increase income, career growth, and financial stability.

Plan Your Taxes

Use annual bonuses to invest and save in tax planning instruments.

Open Health Savings Account

Create a health savings account for tax benefits and to take care of your healthcare expenses in retirement.

Prepay Home Loan

Prepay home loans to save on interest, mainly when the interest rates are high

Compiled By Manas Malhotra