Have You Stupidly Spent Your Christmas Bonus?
Let’s assume that you are fortunate enough to receive a year-end or Christmas bonus. Have you spent it? Or worse, did you spend it in anticipation of receiving it, like Clark Griswold did?
I used to receive discretionary year end bonuses, before I became a business owner. One year I took my largest bonus ever and drove directly to a car dealership. I used a big chunk of my bonus to lease a new car. That was stupid. Unfortunately, I was half-drunk on Christmas cheer acquired at our over-the-top office party. This made it even easier to make a stupid buying decision. I kept that car for a long time but I didn’t need to lease it. The car I was driving was junk so I needed another car. But, I should have purchased a used car.
Boy, was I a Fool of Finance. That never happened again.
Bonuses can make you financially stupid. Christmas spirit (or spirits) can make you stupid. Do not succumb to this. You should put your bonus money directly in a savings account and forget about it until tax time. Then do something wise with it.
Merry Christmas from someone who learned his lesson.