From Yahoo Finance: 2025-03-27 06:31:00

Wondering what to do with a big bonus? Consider paying off debt, beefing up emergency funds, or adding to retirement accounts. Paying off debt can provide immediate financial relief and boost credit scores. Early debt repayment can save thousands in interest and free up money for other financial goals.

Prioritizing high-interest debt repayment can lead to better returns than investing. Evaluate the opportunity cost of paying off debt versus investing. Consider investing if you have low-interest debt. Short-term savings like emergency funds can prevent taking on more debt for unexpected expenses.

You can allocate your windfall towards multiple financial goals. For example, split it between paying off debt, building emergency funds, and investing. Make financial decisions considering opportunity costs. This article provides information only and should not be considered advice.

Read more: Is it smart to use your work bonus to pay off your debt?