Tips for Investing Your Holiday Bonus

(NC) For those lucky enough to receive one, a holiday bonus brings with it feelings of excitement and dreams of purchasing all those items we’ve had our eyes on throughout the year. Financial experts agree however, that splurging on new electronics may not be the best use of your bonus. Investing it, instead, will likely lead to a much happier New Year.

“While the thought of a shiny new phone or tablet is certainly more appealing, using your holiday bonus to pay down debt and invest in your future will be far more rewarding in the long-run,” says Wade Stayzer, vice president of retail and investment services at Meridian, Ontario’s largest credit union.

Here are some money-wise tips from Meridian to help steer that bonus to where it will help you the most:

Pay off debt –Bonuses are a great way to make lump-sum payments on high interest loans, credit card debt and mortgages. This not only cuts down the principal but has the added benefit of reducing future interest, allowing you to enter the New Year without the lingering reminder of last year’s purchases hanging over your head.

Add to your emergency fund – It is generally recommended that every household sets aside enough living expenses for three to six months in an emergency fund, however many people have significantly less put away. As “found money,” a holiday bonus is the perfect way to help prepare for life’s unexpected expenses.

Invest in your retirement – It’s never too early to think about retirement and a bonus is the perfect opportunity to invest in your future. Placing all, or at least a portion, of your bonus in a retirement savings plan will help ensure that you have a comfortable nest egg for the future.

More information is available from a Meridian financial advisor, or online at www.meridiancu.ca.