7 Smart Ways to Spend Your Sign-On Bonus
By Khadejah Stegall
Khadejah is a part of the TLC College Ambassador Program and attends North Carolina A&T University.
If you accepted a full-time job or internship, there is a chance that you were offered a sign-on bonus. Sign-on bonuses are great, especially if your housing is covered or if you are moving to a very expensive city. Although the incentive can buy you your wants and needs, you should spend this money wisely. We share five ways you can make the best out of your sign-on bonus.
Save your money. If most of your expenses are covered and you are left with extra money to spend, it is smart to save for a rainy day. You can put it in your 401k on your job or you can save towards a goal you have whether that is getting a car or saving to buy your first house.
Pay off debt
Before you blow your money at the mall, pay off your debt first. Don’t keep putting the credit card bills off because they will catch up to you. Pay down debt that has the highest interest rates first, then work your way down.
Invest in other thriving businesses for profit
Investing is the smart way to go. There are many thriving businesses that are looking for investors to help take it to another level. Some businesses let their investors get a nice percentage of their profit. Research businesses that have an established brand and let them know you want to offer some money for profit. It’s not guaranteed that you will get profit so choose wisely.
Go on a self-discovery vacation
A self-discovery vacation means to travel somewhere and really get to decompress from all the worry that you have. It’s meant to refresh your mind so that you are clear of your purpose and why you do what you do daily.
Keep it as an emergency fund
Emergency funds are very important to have. If your car messes up or if you need to pay for a quick flight for a family emergency, you are able to do that. It is also great to have an emergency fund in case you get laid off. It is recommended to have three months of your salary in your emergency fund. Your sign-on bonus is a good start to add towards that total.
Start saving for retirement
The earlier you save, the more wealth you create for yourself. Start saving now while you are young. The longer you wait, the less money you will get for retirement.
Pay it forward
It is better to give than to receive. Do you know anyone in your community that is going to college or any kid in need of school supplies? Use a portion of your sign-on bonus to invest in the youth from your community or a family member you know that is going to school. You can also donate to a nonprofit/organization that you were a part of in college. Did they equip you with the tools you needed to get a job or navigate the career world? If so, this would be a great time to donate so they can provide those same tools to others.
A big chunk of money can be great, but it can be gone before you know it if you don’t spend it right. Develop a habit of spending your money smart versus blowing it and wondering where it went.
Khadejah Stegall is a college mommy blogger that inspires others to achieve the impossible through the power of Jesus. She enjoys family time, eating vegan meals when it's convenient and mentoring others on professional development. To be inspired by more post, follow her blog at khadejahstegall.com.