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An annual bonus is usually based on overall company performance. This means you may get a large or small bonus (or no bonus at all) depending on how successful your organization or specific department was that year, as well as how big a part of that success you were. This can also be considered profit sharing.
Here are nine ways to use a bonus to extend its benefits into the new year and beyond.
1
Pay off debt. ...
2
Max out your retirement accounts. ...
3
Invest in an index fund. ...
4
Check in on your emergency fund. ...
5
Contribute to a 529 plan. ...
6
Invest in yourself. ...
7
Move that bonus into a high-yield account quickly. ...
8
Save for your next vacation.
