Are you lucky enough to be in a position that comes with big bonuses?
Well, then you need to make sure you’re being intentional with that income!
It’s very simple to do so, here’s how –
Review Your Budget
If you aren’t already on a monthly budget, first head over here to start building your budget.
When you get on a monthly budget you begin to figure out what your financial goals are.
Having a monthly budget builds a financial road map, so when you get unexpected income you know right where to put it!
And when you get unexpected expenses or life changes, the budget is a great road map as well. But we will focus on the positive side of finances today!
Reference Your Financial Goals
Knowing your financial goals is crucial.
Because you can dream all you want about the big house, nice car, etc. but until you make a goal and a plan to get there it will only ever be a dream!
When you know exactly where you’re at in your goals, it makes budgeting for bonuses a cakewalk.
For example, let’s look at this list of financial goals.
- Pay off debt $2,000 left.
- Save 3-6 months of expenses $10,000
- Save for a new home $50,000
If you receive a net bonus of $5,000, then it’s pretty clear to see where that $5,000 will go, right?
You’ll pay off the remaining debt balance of $2,000, then the rest ($3,000) will go towards building your emergency fund of 3-6 months of expenses.
It really is that simple!
All you have to do is have the road map in place.
I hope that you reach all of your financial goals, and start being intentional with your money today! Follow along for more budgeting tips!
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