an unexpected bonus can bring a person closer to that dream
Phoenix, AZ (PRWEB) July 04, 2014
Debt Consolidation USA explains in a recent article published last June 30, 2014 how employees could make the best use of a monetary bonus from an employer. The article titled “4 Financial Targets For That Unexpected Bonus” lays out some possible applications of the monetary incentive given to employees.
A bonus is usually a result of meeting a goal or going over the company target. It could be a sales quota for the month that the staff was able to reach, it can even be a billing target amount for the year that the office was able to surpass. This incentive is usually given to reward a job well done.
The article shares that one of the best applications for a bonus would be to secure the future. There are a lot of unforeseen possibilities in life and it is a great idea to make sure there are resources to soften the blow of negative circumstances. One way to achieve this is to increase the emergency fund. This will allow for a longer safety financial cushion in extreme emergencies.
Lowering credit card debt is another way of using an unexpected bonus. The article explains that credit cards usually carry the highest interest rate and paying it off will benefit the consumer. If there is no credit card debt, it is best to look at what other debt or loan item carries the highest interest rate. Once the consumer determines the highest interest bearing debt, it is a good idea to use the bonus to pay it down.
The article explains that using the unexpected incentive to increase assets will also benefit the consumer in the long run. This could be in the form of getting various investment options such as stocks or bonds. This is also a great way to jumpstart passive income earning investments. Another one is increasing the equity on the mortgage by putting in extra payments. This shortens the payment term and pulls the payoff date closer.
One other great use for an unexpected bonus is dream funding. Each person dreams of going on a trip in a different country or buying a classic car for restoration. It could also be a dream to make a considerable down payment amount for a mortgage. Whatever it is, an unexpected bonus can bring a person closer to that dream.
To read the rest of the article, click on this link: http://www.debtconsolidationusa.com/personal-finance/4-financial-targets-unexpected-bonus.html