MAKING YOUR HOLIDAY BONUS COUNT

You just got your hands on that much-awaited extra pay and after a few minutes of enjoying the moment, the dreaded question comes to min: Do you spend it or save it? Here are some ideas to help you decide what to make use of your additional cash.

Payback time Follow the overused saying that it's better to give than to receive. Some people might be asking your for some cash during this season, and now is the perfect time to lend a hand and appreciate what you have. Donate to a charitable institution, or maybe your alma mater.

Invest in preparation According to a recent survey conducted by FINRA, only 46% of participants own a 'rainy day fund' when in fact there should always be a stash for unexpected expenses. This is more commonly known as the emergency fund, which unfortunately, is often neglected. In case you have an urgent need that may dent your current cash at hand, it would be helpful to be able to get something that does not add to your debt or force you to incur penalties. You never know when you will need extra money in the future so it's best to be ready.

Cut down your arrears Save yourself from possible headaches by starting to reduce your debt using the money you got. Making a huge payment on loans or credit cards may can shrink the total amount of interest you will have to compensate for. For example, if you have a 2-year vehicle loan for $20,000 with a 6% annual interest, you overall rate would reach $2,549. But if you pay around $1,000 of your bonus here, your interest would be slashed down to $192.

Experience over warranty Since you’ve been working hard over the last 11 months, it’s time to treat yourself to a little break. Instead of hitting the malls again, why not go on a vacation with you family? The memories you will be able to gain will be of much value compared to another gadget or designer clothes from the department store.

Take advantage of the bullish period The Dow Jones Industrial Average is continuing its surge, making it the best time for you to add to your holdings to bolster your portfolio value. Of course, in doing this, you should carefully consider your investments based on your goals and level of risk tolerance.