Blog Misc How Much Is a Christmas Bonus This Year? 6 Things You Can Do With It

How Much Is a Christmas Bonus This Year? 6 Things You Can Do With It

date December 23, 2021 time 7 min read 605 views

The holidays are approaching, as are your 13th-month salary and Christmas bonuses. The sudden inflow of funds can cause you to overspend. So, you need to know how much is a Christmas bonus and what to do with it. Let’s get started.

The long-awaited social welfare is finally here. In the next few weeks, the Christmas bonus will be paid. The bonus is provided as a yearly one-time payment to persons on long-term social welfare to extend a helping hand during the holiday season.

If you are among the fortunate majority who receive a Christmas bonus at the end of the year, you might treat yourself to something you have wanted for a long time. Some of you might prefer a staycation or take Christmas tips and set a plan for the new year.

While you have a long list of things you want to buy, they may not be a good way of using your extra money. We will go over six tips to handle better your year-end bonus and prepare a year-end financial planning checklist to set yourself up for new goals in 2022 in this article.

First and foremost, you must know how much is a Christmas bonus. Then figure out what you’re going to do with that bonus.

This year, you might want to take a more reasonable approach with your Christmas bonus. This article will help you.
This year, you might want to take a more reasonable approach with your Christmas bonus. This article will help you. (Source: Pixabay)

How much is a Christmas bonus?

If you are wondering how much is a Christmas bonus, look no further. Officials stated that the Christmas bonus in 2021 will be equal to 100% of your regular weekly pension or benefit payout.

That means that all qualified beneficiaries will get a bonus equal to their standard weekly payment in addition to their regular weekly payout. The minimum payment for the Christmas Bonus is €20 which you can put into your Christmas saving plans.

What to do with your bonus money?

Receiving a Christmas bonus could be a pleasant surprise. Because this is possibly money you weren’t initially anticipating,  ​you may splurge and reward yourself. If you wonder what to do with bonus money, we will help you out with some ideas for how to spend or save your Christmas bonus to turn $1,000 into $5,000 in a month.

1. Pay off the outstanding debts

Paying off debts may not be the most glamorous way to spend your Christmas bonus, but it is one of the wisest. If you have outstanding debt, use your bonus money to pay it off as soon as possible.

Since your wages can cover all of your necessities, your bonus is your extra money. As a result, you should pay off your debts as soon as possible because you will pay less interest and have much more money in the long term. Then you can use that for exciting things like buying a new refrigerator, going on vacation, throwing a Christmas party for family and friends, or saving before buying a house.

2. Enjoy your bonus

It is one of the more intriguing ways to discover what to do with bonus money. Enjoy your bonus, put in the bucket some budget travel tips, and be ready to have a vacation because you worked hard for it all year. You deserve that new gadget, that plane ticket, or that new car you desperately need.

If you’re married, seek some ways to set a budget for married couples and plan a post-holiday break for your spouse. Do you have children? Leave them with Grandma and reserve a quiet bed and breakfast a few hours away. After all, it’s always a wise investment to improve your marriage.

Make use of your Christmas bonus to throw a nice party for your family. (Source: Pixabay)
Make use of your Christmas bonus to throw a nice party for your family. (Source: Pixabay)

Perhaps treat your family to a large supper at their favorite restaurant. While everyone is indulging in their sweet tooth, surprise your family with the reason for this excellent dinner on your dime – your Christmas bonus. 

3. Increase your emergency fund

You can easily choose one way to spend your bonus money, but be prudent and deposit a portion of your bonus into contingency funds for emergencies. By saving for unanticipated situations you can respond to them better.

You have paid off your debts but aren’t ready to start investing, now is a great moment to replenish your emergency fund. So, if any charges come up unexpectedly, you won’t have to worry about how you will pay for them and financial distress. The unexpected happens all the time, so fill up your nice nest egg now with some new year’s resolution 2022 and let your year-end blessing bring you the gift of peace of mind.

4. Boost your 401(k)

If you already know how much is a Christmas bonus that you will receive, we will recommend a method to multiply that bonus many times. Investing your Christmas bonus in a company-sponsored 401(k) may be the simplest method to multiply your money.

Before planning for that, you should take a look at the differences between 401(k) and 403(b) to make the right choice. Plus, keep track of the latest rules of 401k 2022 contribution limit IRS because it might affect your retirement plans.

Let’s look at an example: putting a $2,000 bonus into your retirement account and leaving it there for 20 years might turn into over $20,000! If you do this every year, your tiny Christmas bonuses will grow into a substantial retirement fund. If you don’t have an investment strategy in place for this money, you can use this method to get closer to your retirement goals.

5. Explore savings options

If you want to save for retirement and smart college budget and savings vehicles for your children’s education, weigh Roth IRA vs 529 plan can help you deal with it. The Roth IRA is popular because you pay your taxes upfront, which means that all of the money you put into it grows tax-free. When it’s time to cash out, all of your Christmas bonus money will be returned to you in droves.

Before you start trading with the sum on your Roth IRA basis, you should be aware of Roth IRA income limits so you don’t end up with an excess Roth IRA contribution in case your earning is higher though. 

However, Roth conversion rules 2022 would stop you from taking advantage of Roth IRA conversion, so keep track of that and be flexible when the legislation changes.

If you have children, you may put the extra money into their education fund that is also the best way to save money for kids. With the skyrocketing prices of higher education, a couple of thousand dollars may not seem like much. However, if you deposit your bonus money into a 529 college savings plan or an Education Savings Account (ESA), it will grow with your children.

Accumulate your Christmas bonus into savings options for a brighter financial future for your family.
Accumulate your Christmas bonus into savings options for a brighter financial future for your family. (Source: Pixabay)

6. Investing your Christmas bonus 

If you want to build more wealth, consider investing any remaining money from your Christmas bonus. Let’s imagine that you put $1,000 of your bonus into an investment fund every year for the next 30 years, and the money grows at a rate of 6% each year. You’ll have put in $30,000 by the end of year 30, but your future value will be around $85,000. You could double your initial investment every single year by that way or turn 1000 into 10000 as fast as possible.

There are numerous investing channels available nowadays, including equities, investment funds, digital currency, etc. In which there are high-yielding investment goods such as technology stocks or cryptocurrency. So, if you can invest the time to understand how to invest in cryptocurrency and make the right strategy, you may make some unexpected gains.

Investing comes with risk, but it may help you make money move and achieve your plan to save $5000 in 3 months or save $5000 in a year faster. Make sure you select the appropriate investment for the level of risk you are willing to accept. That way, investing is one of the most effective methods for determining what to do with bonus money.

The information provided above will assist you in knowing how much is a Christmas bonus. So, if you receive a Christmas bonus this year, consider one of the six suggestions in this post. The best thing is that you are not required to select just one choice from this list. 

To fit your family’s financial health condition, you can mix and match smart spending and smart saving. For example, if you receive a $2,000 bonus, you could choose one way to spend $1,000 and another way to save $1,000. In any case, you are spending your Christmas bonus wisely.

If you want to build more wealth, consider investing any remaining money from your Christmas bonus. (Source: Pixabay)

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George Schooling

George Schooling

Earn up to 15% APY on your idle stablecoins (USDC, USDT)

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