Spending your bonus check

An unexpected bonus is always welcomed, no matter the amount. Many people spend their bonuses the minute they are transferred into their bank account. While it’s understandable that you’d want to spend it on a splurge, Jamie Hopkins, director of retirement research at Carson Group suggests a different approach.

If you want to live a comfortable retirement, it’s important to prepare yourself for that period and make contributions as often and as much as possible; a bonus can help you do just that. “This means implementing strategies like sending bonus monies straight toward retirement and setting up automatic 401(k) contributions at work,” says Hopkins. Automating your contributions is a smart way to save for retirement without feeling like you have to make sacrifices for current needs.