Expecting a Bonus?

Bonuses tend to come around the holidays, meaning many employees are in for a nice supplemental check soon. While it can be tempting to splurge on a new iPhone or extravagant vacation, excessive spending may not be the most productive way to handle your bonus. Before blowing your check on gifts, trips, or gadgets, consider directing it towards this option.

Increase your 401(k) contributions: You should already be contributing to your employer's 401(k) retirement account and be taking full advantage of any available company match program if one is available, but if you get a bonus, that's a great opportunity to increase that contribution. The more you can set aside today, the better off you'll be in the long run, thanks to the power of compound interest.