We'll be getting more than $9,000 as a bonus. What are some smart ways to use this money?
What a terrific financial dilemma! Here are a few ideas that don't involve going on a massive shopping spree in Beverly Hills:
NIX BAD DEBT. Tackle credit card debt pronto. Some debt is healthy, like a mortgage or student loan, but you should pay down other interest payments that are above the market rate.
SAVE FOR RETIREMENT. Contribute to or open a Roth IRA. If you and your spouse together earn $159,000 or less annually, you can add up to $5,000 each. Or invest the money in your 401(k)—the maximum amount is $15,000.
SOCK IT AWAY. Opt to put it in an interest-bearing money market account so you'll have emergency funds.
LET IT GROW. Watch your bonus expand over time in the financial markets. Talk to a professional adviser for a personalized plan.