5 Smart Ways to Spend Your Holiday Bonus

Getting a holiday bonus this year, or maybe some gift money from a loved one? If so, you probably have a few ideas on how you could use it, and the goal isn’t always to be frugal. 

But what if you could spend and call it a financially smart decision at the same time? If you pick any of these five ideas, you can rest easy knowing that your spending is too savvy to be considered a splurge:

1) Take a trip to Europe. For the first time since 2002, the euro and the U.S. dollar are worth about the same. There’s no telling how long these favorable rates will remain, so if you want your vacation budget to go a long way, it’s a great time to book your tickets.

2) Donate to charity. When you spread kindness and cheer, you can be directly rewarded for it. Plenty of charitable causes have tax-deductible contributions, so be sure to check whether your favorite charity does before you file. 

3) Pick a home renovation project. Many renovation projects can help pay for themselves by boosting your property’s value. Additionally, upgrades like energy-efficient windows can qualify for generous tax credits and help lower your monthly living expenses.

4) Fund your New Year’s resolution. If you’re hesitant about purchasing what you need for your new goals, keep in mind that your wallet may thank you for accomplishing them later on. For example, new fitness gear could be an investment toward lower healthcare costs in the future.

5) Invest in yourself. Your holiday bonus is a reward for your hard work. You’re always worth investing in, so don’t be shy — treat yourself to a special experience or an item on your wishlist.

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