Holiday Expenses 

The holidays can be an expensive time, and it can be hard for some families to make ends meet, let alone buy gifts and put a big meal on the table. Using a bonus to cover some of these common expenses can help you make that time of year really special for your loved ones. While you certainly don’t want to use your bonus as an excuse to overspend, it can still help you build a brighter holiday for your family. Better yet, think towards the future and set some aside for next year’s holiday spending. Your future self will thank you. 

Emergency Savings 

According to Bankrate’s Annual Emergency Savings Report, more than one in five Americans don’t have any emergency savings, and 30% of the ones who do, don’t have enough to cover at least three months of living expenses. You never know what’s coming. Use your bonus to stash some away for those just-in-case scenarios. 

Extra Payments on Principal 

If you own your own home, a mortgage is the long-term financial commitment that makes that dream possible. When you get those extra checks that go beyond your monthly budget, you can pay less over time by making an extra payment on principal. That cuts down on the interest you’ll pay over the life of your loan, reducing your long-term costs. 

Saving for a Down Payment 

If you’re still in the dreaming phase, hoping to one day have your own home—or purchasing a new car, camper or ATV—that bonus check can help you get there. Set it aside for a down payment, or add it to your savings to help meet that dream. 

Make a Donation 

Doing some good for others over the holidays can do a lot for your own mental health. And it can help make the lives of those in need a little brighter in what can be a dark time for many. Consider putting a portion or all of your holiday bonus towards a worthy cause this year. You also can deduct donations from your taxes, which offers a small financial incentive to do good. 

Pay Off Some Debt 

Maybe credit card balances have been hanging over your head, or you have student loans that you’ve been wanting to pay down faster. Using that holiday bonus to pay off personal debt can be a good way to help your savings grow in the long run. By paying it off aggressively with a big bonus payment, you can save yourself a ton of money on interest payments over months or years of carrying that extra debt. It’s a nice little New Year's gift you can make to yourself, getting a fresh start as the calendar turns. 

Whether you’re dreaming big for the future or taking care of your current expenses, RMCU has the accounts and loans to help you manage your money and live life to the fullest, no matter where you are in your financial journey. Apply to become a member and see where your finances can take you. 

*“Non RMCU links are being provided as a convenience and for information purposes only; they do not constitute an endorsement or an approval by Rocky Mountain Credit Union of any of the products, services or opinions of the corporation or organization or individual. RMCU bears no responsibility for the accuracy, legality, or content of the external sites.”