Year-end bonuses are back! Here’s what to do with yours
The season is characterized by generous employers.
A year later, unprecedented workloads amid a job market that’s increasingly competitiveNearly every industry has twice the number of employers offering year-end bonuses to their employees than last year.
GoogleIt will offer a cash bonus to all employees and interns. $1,600Tyson Foods claimed that its meatpacking plants are paying hourly, but Tyson Foods did not specify. $300 and $700 eachThis holiday is available in conjunction with raises and flexible work hours.
According to Challenger Gray and Christmas (the highest number since 2015), almost a quarter of companies offer a bonus that is based on company performances. This compares with last year’s 12.2%.
Numerous companies have also stated that they will increase the amount of their bonuses. A little over 17% of respondents said that bonuses would be larger than last year. This is a new high.
Andy Challenger, Challenger, Gray and Christmas senior vice president, stated that bonuses tend to go up when there is a tight labor market. “Employees have the driving seat.”
For workers facing higher pricesChallenger stated that these bonuses arrive at the right time as you head into the holidays. “Having extra cash in the bank is so important.”
A one-time cash injection can make a huge difference in your financial situation during difficult times. It all depends on how you use it.
Shelly-Anne Eweka is the senior director for financial planning at TIAA. She recommends that the payout be split into three groups to help with debt repayment and savings, as well as some discretionary spending.
1. Reduce your debt.Begin by eliminating financial red flags, she suggested. This includes high interest rates. credit card debtPayments and conditions that can cause stress.
In ordinary situations, credit card debts are not particularly common. hard to pay downWith the average annual percentage rate exceeding 16%, this is a significant advantage.
Card balances are slowly being refunded. ticking higher after Americans paid off a record $83 billion in credit card debt in 2020, helped by government stimulus checks and fewer opportunities for discretionary purchases.
It’s a good opportunity to start chipping away at your balances. $5,525, on average.
2. Savings.Eweka suggested that some money could be used to fund an emergency fund and a long-term savings account.
Eweka stated, “If you’re not getting the match that is your No. Eweka stated that priority number one was to get the match.
Parents may consider contributing to your pension if your parents believe you’re on the right track for reaching your retirement goals, and that your consumer debt has been under control. 529 college savings planMany are the reasons. tax advantagesEweka was added.
3. Spending.It’s natural for most people to want to indulge at least slightly. That’s okay. Eweka stated that it is better to be strategic than blow your money on impulse purchases.
You can take a class or hire a personal trainer to help you. exercise equipmentBuy a handful of key pieces to make your home more attractive. new work wardrobeAssisting with or helping to create charityShe said that if it’s important to you, then “it should help you move forward.”