Wednesday, February 4, 2009

Don't Spend that Bonus!

I got my company bonus in the last week.  It was not the full value of what my bonus should have been, but it was very generous when you consider the economic climate and the struggles my company went through in the last year.  Truth is, I was expecting to get nothing.  So were most of the people under me.  Most were very appreciative of getting anything, however small it may have been.

So how did I spend this windfall?  I am not doing anything I would not have done otherwise.   I have never ever decided to do a little more spending just because I got a bonus.  Ironically, there is no real need for me to do this because I honestly have quite a bit of savings.  It is true, I will have lots of expenses this year.  There will be the wedding and I want to buy a house sometime soon if housing prices continue their precipitous decline. I have my eye on a new Home Theater receiver, but if I buy it, it would have been something I would have done regardless of my bonus situation.

Now my advice now is the same as my advice would be regardless of the economy; you should not do any extra spending just because you get a bonus.  If you want to celebrate, do it in a small way.  But under no circumstances should you buy something just because you happen to get more money.  This is how people become poor.  Their pockets are like sieves.  As soon as money comes in, it goes out the other end.  Most people do not have money problems because they do not earn enough, they have problems because they spend too much.  It is easy to spot these people.  These are the same people who get upset that there might not be a bonus.  They are upset because they have already spent the money!

So do yourself a favor and ignore the fact that you got a bonus.  Believe me, saving it will bring you much more happiness than anything you can possible buy.


  1. There should be a balance though. If you're the kind of person who has diligently saved the appropriate amount for retirement and savings then I say you should enjoy your bonus. Now, if your bonus is a very large amount and you're still far from retirement, then I would advise not getting the new sports car or yacht just yet. However, do spend some of it. You have worked hard and you should enjoy some of the fruits of your labor now and not just in your golden years.

  2. In this tough economy, it's better to have more cash. Save for now. You will always have the option to buy stuff in the future.

  3. I am still waiting for my bonus. I will decide what to do when I get it.