Showing posts with label Year End Bonus. Show all posts
Showing posts with label Year End Bonus. Show all posts

Saturday, January 25, 2020

4 Smart Investments for Your Large End-of-Year Bonus

There’s a lot of buzz about a recession on the horizon. This causes a lot of people to fear for their future. However, if you financially plan for the future, you won’t have to worry about a breakdown in your household. 

One of the best ways to financially plan for the future involves making wise investments. Consider some of the smartest ways you can use your large end-of-year bonus to invest in your family’s financial future.

Pay off debt

So many people spend a huge portion of their paycheck to pay off debt. Whether it’s credit card debt or a car note, find ways to quickly pay off the debt you have. If you have a large bonus from your job, consider using it to pay off the debt. Then, for the rest of the year, you can enjoy more money that stays in your bank account.

Start a business

There are more entrepreneurs than ever before. This is because more people are understanding how the tax laws are in favor of the landowner and the business owner. Consider starting a business that meets a need within the marketplace. Too often, people make the mistake of starting a business that surrounds a passion. 

If your passion and your paycheck come together for a lucrative endeavor, that’s great. However, focus on serving the community to meet an obvious need. This will help you remain profitable and relevant for years to come.

Purchase an investment property

An investment property is an excellent purchase. Use your bonus to make a real estate down payment. Once you purchase the property and get tenants in the building, your tenants will pay the mortgage and more. 

Let them pay off the mortgage while you cash the check each month. You can pass down investment properties to your children. Once the mortgage is paid off, you and your family can enjoy 100% of the rental income. It’s a great form of passive income.

Invest in the stock market

Though there are tons of people who are afraid of investing in the stock market, don’t be one of them. When it pertains to the stock market, the key is knowledge. If you take courses and learn the patterns of the market, this effort can be a smart place to invest your money.

While money is a commodity that you’ll want to use wisely, the same can be said for time. In fact, you can always make more money. However, you can’t get back the time that’s been spent. Use time as a commodity that’s on your side by using it wisely. 

For many investments, the earlier you start, the better off you’ll be. Once you’re educated regarding how to make smart investments, begin to invest.

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