Comments on: Making the most of your Bonus http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus/ Personal finance blog for college students, recent graduates and everyone else -- including entrepreneurship -- for getting rich. Featured in the Wall Street Journal and New York Times. Sat, 21 Nov 2009 09:24:01 -0800 http://wordpress.org/?v=abc hourly 1 By: One Million and Beyond - » Weekly Review – March 23, 2008 http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus/comment-page-1/#comment-56847 One Million and Beyond - » Weekly Review – March 23, 2008 Mon, 24 Mar 2008 01:12:10 +0000 http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus#comment-56847 [...] had a guest post on Ramit’s blog, I Will Teach You To Be Rich, which was an amazing experience. I’m going to see if I can get a [...] [...] had a guest post on Ramit’s blog, I Will Teach You To Be Rich, which was an amazing experience. I’m going to see if I can get a [...]

]]> By: Peter Bielagus http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus/comment-page-1/#comment-56560 Peter Bielagus Fri, 21 Mar 2008 19:27:56 +0000 http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus#comment-56560 Great post! As a financial advisor to young America, I always hold my breath when one of my clients gets a big fat check. Will they blow it? Or take this rare chance to get a huge jumpstart on their financial life? Thanks for providing some tips. Along those lines, check out a new blog I just started posting to called MoneySmartBlog.com that discusses a lot of these issues. I actually just wrote a post about using your tax refund to improve your financial life. I'd love to hear your thoughts! Great post! As a financial advisor to young America, I always hold my breath when one of my clients gets a big fat check. Will they blow it? Or take this rare chance to get a huge jumpstart on their financial life? Thanks for providing some tips.

Along those lines, check out a new blog I just started posting to called MoneySmartBlog.com that discusses a lot of these issues. I actually just wrote a post about using your tax refund to improve your financial life. I’d love to hear your thoughts!

]]> By: One Million and Beyond - » Happy St Patrick’s Day http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus/comment-page-1/#comment-56049 One Million and Beyond - » Happy St Patrick’s Day Tue, 18 Mar 2008 02:11:56 +0000 http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus#comment-56049 [...] Happy St Patrick’s Day everyone! And welcome to all of the I Will Teach You To Be Rich readers. I was lucky enough to have a guest post over at Ramit’s blog! [...] [...] Happy St Patrick’s Day everyone! And welcome to all of the I Will Teach You To Be Rich readers. I was lucky enough to have a guest post over at Ramit’s blog! [...]

]]> By: sunshine_nyc http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus/comment-page-1/#comment-56023 sunshine_nyc Mon, 17 Mar 2008 19:49:29 +0000 http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus#comment-56023 I disagree about the "Payoff your mortgage" part. 2 reasons: 1. If I have a 5.75% mortgage rate and can earn more than that by investing the money in other securities than I have positive carry and paying off the mortgage is not a great idea. 2. What about deducting my monthly interest oayments from my taxes? I disagree about the “Payoff your mortgage” part.
2 reasons:
1. If I have a 5.75% mortgage rate and can earn more than that by investing the money in other securities than I have positive carry and paying off the mortgage is not a great idea.
2. What about deducting my monthly interest oayments from my taxes?

]]> By: Oatdaddy http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus/comment-page-1/#comment-56005 Oatdaddy Mon, 17 Mar 2008 14:25:04 +0000 http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus#comment-56005 The defining feature of a bonus is that it's a lump sum. Lump sums are hard to come by, and generally should be preserved as such. I would reduce this entire topic to an axiom: PRESERVE THE LUMPINESS OF LUMP SUMS. Put it somewhere and think about it, admire its lumpiness. It's your wealth, and it's a symbol of your ability to build wealth. Think about what to do with it over time. In the meantime, you will be very proud of yourself for having such a tangible symbol of your current wealth, and psychologically you have taken a true step towards permanent security. The defining feature of a bonus is that it’s a lump sum. Lump sums are hard to come by, and generally should be preserved as such. I would reduce this entire topic to an axiom: PRESERVE THE LUMPINESS OF LUMP SUMS. Put it somewhere and think about it, admire its lumpiness. It’s your wealth, and it’s a symbol of your ability to build wealth. Think about what to do with it over time. In the meantime, you will be very proud of yourself for having such a tangible symbol of your current wealth, and psychologically you have taken a true step towards permanent security.

]]> By: Margo http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus/comment-page-1/#comment-55961 Margo Mon, 17 Mar 2008 03:00:43 +0000 http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus#comment-55961 You need have fun with some of your bonus money. Last year, I saved 80% or so, and spent the other 20%. According to my MS Money history, the fun money was spent on jewelry and a professional massage. Now that silver is up so much, do I count that necklace set as an investment? Does this mean I need to re-attempt blowing some fun money? ;-) You need have fun with some of your bonus money. Last year, I saved 80% or so, and spent the other 20%. According to my MS Money history, the fun money was spent on jewelry and a professional massage.

Now that silver is up so much, do I count that necklace set as an investment? Does this mean I need to re-attempt blowing some fun money? ;-)

]]> By: 20s Business Central http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus/comment-page-1/#comment-55936 20s Business Central Sun, 16 Mar 2008 19:26:32 +0000 http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus#comment-55936 I get a Christmas bonus at my job. It's never very big and goes straight to my credit cards. My roommate on the other hand get very large bonus checks and always blows them on TV's or surround sound systems. I guess its just a matter of personal preference, but I always think to myself that I could do so much more with those checks. I get a Christmas bonus at my job. It’s never very big and goes straight to my credit cards. My roommate on the other hand get very large bonus checks and always blows them on TV’s or surround sound systems. I guess its just a matter of personal preference, but I always think to myself that I could do so much more with those checks.

]]> By: AJC @ 7million7years http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus/comment-page-1/#comment-55929 AJC @ 7million7years Sun, 16 Mar 2008 17:47:51 +0000 http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus#comment-55929 Wrote a related post about some high-flying sales reps ... my advice: INVEST 50% of any pay rises (all the ways that you list are good choices) and SPEND 50%. Why not save it all? There's such a thing as TOO MUCH delayed gratification ... it's important to reward progress in a small way now ... with the big reward (when the invested 50% compounds) later! Great post ... thanks! Wrote a related post about some high-flying sales reps … my advice: INVEST 50% of any pay rises (all the ways that you list are good choices) and SPEND 50%. Why not save it all? There’s such a thing as TOO MUCH delayed gratification … it’s important to reward progress in a small way now … with the big reward (when the invested 50% compounds) later!

Great post … thanks!

]]> By: thekevinmonster http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus/comment-page-1/#comment-55912 thekevinmonster Sun, 16 Mar 2008 14:07:25 +0000 http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus#comment-55912 I just inherited some money, so this is an extremely pertinent article. I had discussions with my parents over whether to pay off my car loan (I have 5600 left on it), or invest the money. that was when I thought I'd be getting 5,000 dollars, but I'm really getting 9,000. I suppose now, I get to have my cake and eat it too. And by cake, I mean "increased cash flow from my employment income" and by eating it, I mean "investing my inheritance and paying off the car loan with it as well". No splurges for me! I just inherited some money, so this is an extremely pertinent article. I had discussions with my parents over whether to pay off my car loan (I have 5600 left on it), or invest the money. that was when I thought I’d be getting 5,000 dollars, but I’m really getting 9,000. I suppose now, I get to have my cake and eat it too. And by cake, I mean “increased cash flow from my employment income” and by eating it, I mean “investing my inheritance and paying off the car loan with it as well”.

No splurges for me!

]]> By: dhop http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus/comment-page-1/#comment-55881 dhop Sun, 16 Mar 2008 05:35:39 +0000 http://www.iwillteachyoutoberich.com/blog/making-the-most-of-your-bonus#comment-55881 Good post but the last part is slightly misleading. The interest on your savings account isn't completely free money. You'll get taxed on that amount as income. If you already have a sufficient emergency fund established, you're leaving a lot of money on the table by not diverting funds into tax advantaged accounts like your 401k, Roth IRA, and my new favorite the Roth 401k. I know too many people who stash away tons of money in their money market savings accounts because they are afraid that something catastrophic will happen. The advantage of the products mentioned above only magnifies if you invest more money sooner. If you are retiring in a year, the difference is negligible. If you're retiring in 30 years, the difference is VERY significant. The tax savings compounds too! divad smot - slightly OCD sounds like an understatement! Good post but the last part is slightly misleading. The interest on your savings account isn’t completely free money. You’ll get taxed on that amount as income. If you already have a sufficient emergency fund established, you’re leaving a lot of money on the table by not diverting funds into tax advantaged accounts like your 401k, Roth IRA, and my new favorite the Roth 401k.

I know too many people who stash away tons of money in their money market savings accounts because they are afraid that something catastrophic will happen. The advantage of the products mentioned above only magnifies if you invest more money sooner. If you are retiring in a year, the difference is negligible. If you’re retiring in 30 years, the difference is VERY significant. The tax savings compounds too!

divad smot – slightly OCD sounds like an understatement!

]]>