If you got a bonus of $10,000, what would you do?

Before you start spending it all remember these key facts:
1.       You will get less than $10k after payroll taxes are deducted.
2.       Set aside something for the tax man – Depends on your tax situation.

Here's a suggested order of use:

a.       Fill up your emergency cash
b.       Pay down credit cards – Start with the highest interest rate and work your way down
c.       Pay down other debt due in the short-term, i.e., within the next 12-months
d.       Pay down other high cost debt, perhaps a personal loan or car loan

e.       Pay down student loans

f.        Pay down mortgage
g.       Invest in wealth building assets

h.       Consider a donation to your favorite charity
i.         Buy someone you love a gift
j.         Watch that Broadway show that you always wanted to see – Make sure to keep this expense to no more than 10% of your take home amount of bonus. So maybe not Hamilton 😊, at least not this time.


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