Our bonus' aren't quite as nice as some of you receive. We both receive two weeks of pay as our year end bonus. However, we are allowed to use one of those weeks as an extra week of vacation so we usually do that to help lower our taxes.
We also receive quarterly bonus' and stock dividend checks (profit share given to us) twice a year so we are always getting random money.
If DH gets promoted next year, fingers crossed, we will get a large year end bonus plus our two week holiday bonus.
We use this money for Christmas shopping, credit card debt, etc. It really depends on our financial situation at the time.
We both get decent bonuses but my husband's is several times the size of mine. They come at year-end. We often set an amount that each of us can splurge. Last year I think it was $500 each. This year it is $1,000 each. (I think I'm getting a handbag with my $1k in splurge money this year.)
The majority of the bonus $ goes right into savings until we decide how to invest.
DH and I work at the same company and the annual bonus is a percentage of our previous 5 year's income (including previous annual bonuses). It is more than a month's salary. We buy some privately held company stock, I put some in my Roth, and put the rest into savings for vacation funds, non-regular expenses, and downpayment savings. Bonus day is better than Christmas. I usually login to banking some time in the middle of the night to see what the direct deposit amount is and then go back to sleep.
Post by hesitantbride on Dec 9, 2012 22:43:19 GMT -5
Out of curiosity, in what professions is one awarded a bonus of $100k or more? Are we talking Wall Street, or a partner in a law firm? I am honestly astounded at this large of a bonus (says the higher ed worker and spouse of a government worker, who get no bonuses at all).
Out of curiosity, in what professions is one awarded a bonus of $100k or more? Are we talking Wall Street, or a partner in a law firm? I am honestly astounded at this large of a bonus (says the higher ed worker and spouse of a government worker, who get no bonuses at all).
The higher level employees at the software company I'm at will get over $100K. The bonus is an equal percentage for each employee, so those that make more will get more.
10% of gross goes to charity/tithes. The rest is split fairly evenly between savings, debt payoff, and house projects. We are nerds so house projects are fun for us. This year we will put in sprinklers, sod, and trees in the backyard. Next year we will continue with the back yard and put in a concrete slab on the side of the house, concrete border, small deck, and a new shed or two. Exciting, right?
Last year DH hadn't been at his company a full year but he got $7k and part of it went to vacation and the rest went to debt. This coming year we're hoping it will be closer to $10k and it will go to our down payment fund.
In our industry, it's the norm for every non-union employee to get an annual bonus. The amount depends on meeting individual, department and corporate goals. In an average year, we get 20- 25%.
We just budget it like everything else. We treat it no differently than any other income, other than it's not used for fixed expenses.
This is the first year we'll both get a substantial bonus. In the past, it's only been me, and we've split it between one fun purchase, something big we're working on that year, and then paying extra on student loans.
In the past, it's gone toward our wedding/house downpayment, a large vacation, etc. Mine has typically been about 20% of my salary, and H's this year should be about 12% - so not crazy big, but enough to make a difference.
My annual bonus is typically ~5-10K. My H got a smaller bonus this year as part of a profit sharing plan. We usually just put it into general savings and decide later how to allocate between investments and HSA contributions. Sometimes the bonus comes right before the end of the year so it feels like we use it to pay our property taxes in December. In the past, we also paid extra to the mortgage, but at 15 years and 3.25%-we are no longer doing that.
I get one in Feb every year plus they cash out our stock that vests and pay that out which is usually a decent amount...annoying but you can turn around and buy more stock if you want. It usually goes to savings, vacation and home improvements.
I was excited when I went from no bonus to getting $2000. Now I'm sad again. I get my bonus in April. DH gets his this month. We're putting this year's bonuses towards a really nice vacation in May.