Just got a big bonus? Here's how to make it work for you

Got a big bonus? Here’s how to make the most of it—without letting it slip away.

A big bonus is an exciting moment—whether it’s for hitting a work milestone, finishing a major project, or receiving a well-earned payout. 

But once that money hits your account, what’s next?

It’s easy to let a bonus go towards impulse purchases or short-term expenses. And while treating yourself is important, making smart financial moves now can set you up for even greater financial security down the road.

Here’s how to maximize your bonus without feeling like you’re missing out.

Step 1: Cover your bases.

Before deciding where to put your money, make sure you’ve handled the essentials:

• Emergency fund: If you don’t already have one, consider setting aside at least three to six months’ worth of expenses. A high-yield savings account can help you build and maintain this safety net while earning competitive interest.
• High-interest debt: Got credit card debt or high-interest loans? Paying those down first should be made a priority.
• Future expenses: Are there any upcoming big expenses—like home repairs, tuition, or a major purchase? Setting aside money now can prevent the need for costly financing later.

Step 2: Put your money to work.

Once you’ve taken care of your immediate financial needs, it’s time to think about how to make your bonus work for you. Leaving it sitting in a checking account might feel safe, but it’s not actually helping your money grow.

You have a few options when it comes to making your money work harder:

• Traditional Savings Accounts: These are a secure way to store your money while earning a little interest over time. However, most basic savings accounts have lower interest rates, meaning your money isn’t growing as much as it could be.
• Certificates of Deposit (CDs): CDs often offer higher interest rates than regular savings accounts, but the catch is that your money is locked away for a set period (such as six months, one year, or longer). If you withdraw early, you may face penalties.
• Money Market Accounts: These accounts give you the best of both worlds—higher interest rates than a savings account, but still allowing you to access your money when needed.
  

OnPath Credit Union’s Elite Money Market Account is designed to give you the flexibility to access your funds while offering a higher return than a standard savings account. A money market account is a great option if you want to grow your money with higher interest rates while still having easy access to your funds and keeping your savings secure.

That means your bonus can grow while staying within reach when you need it.

Step 3: Enjoy- but strategically!

A bonus is meant to be enjoyed!

Allocating a portion toward something fun—whether it’s a vacation, a home upgrade, or a big-ticket item (like a method of receiving instant chili in the shower) can help you feel rewarded for your hard work while keeping your long-term financial goals on track. 

By striking a balance between smart savings and thoughtful spending, you can make the most of your bonus and set yourself up for financial success.

Like this article? Subscribe to our blog and have great financial insights delivered to your inbox weekly.