I can’t believe that it was 2 whole years ago when I bitched complained made note that I received an unexpectedly low bonus and what I was going to do to rectify the situation. The amount that was “lower than expected” was actually part of my compensation schedule. Well, this year things are different.
The compensation portion of this year’s bonus was higher than any year in the past, and then in a completely unexpected move The Boss Men Decided to throw me another few bucks on top of the compensation schedule piece because the firm, as a whole, did really well.
What I am Doing With The Extra Cash from my Bonus
As you may have guessed from my recent posts on extra payments when dealing with an amortization loan, I have a few amortization loans. In addition to the all too common, student loan and mortgage debt, I also have a car loan that is been alive for way too long.
However, I have to balance the desire/need/compulsion to destroy the auto loan with The Wife and I’s operation “hoard cash.” This unexpected amount allows me to satisfy both fronts.
- About 10% will be used to pay off outstanding Credit Cards that would have been paid off at the end of the month. This makes me feel like my checking out gets breathing room since I choose to keep myself cash poor so I stay on track.
- About 20% will go into our Tax Account since the bonus amount will be in the form of a 1099, I will owe taxes on it. Do I think I will need all 20%? Nope, especially because of our new little tax deduction.
- About 30% will go towards the hated auto loan. By my calculations this will reduce my number of payments by 16 and save me over $750 in interest! YOUR WELCOME FUTURE EVAN!
- The remaining amount will go to Operation Horde Cash.
Have you received your bonus yet? Are you even expecting a bonus?