What to Do with Your Holiday Bonus

Don't spend your entire bonus on extravagant gifts this holiday season. The experts over at IBC Bank offer five ways to making your bonus last past the holiday season:

1. Invest in your future

Bonuses provide a great opportunity to save without stretching your paycheck. There are several ways to invest your money that offer higher interest rates than a checking account and fewer risks than stocks. Investing in a savings bond, CD or a savings account are just some of the ways you can make a smart investment in your future.

2. Invest in a financial planning session

Meeting with a financial planner can be key to your long-term success with money. While you may feel that having a financial planner is not a necessity right now, they can help you outline a guide to ensure monetary security for years to come. Understanding what savings programs and investment options are best for your income bracket and age range will equip you with the knowledge necessary to reach your financial goals.

3. Invest in your nest

Making that addition to your house or repainting the master bedroom are other great ways to spend your bonus. By enhancing your home, you will be making an investment you can enjoy throughout the year. Also, by making home improvements, you are making a solid real estate investment, which can benefit you financially should you ever decide to put your house on the market.

4. Half and half investing

You worked hard for that bonus so don’t be afraid to reward yourself. After all, you didn’t have to account for that money when you made the monthly budget, so why not indulge a little? Take the half and half approach to spending your bonus this year. Take half of your bonus and spend it on pampering yourself by buying that new pair of shoes you’ve had your eye on, a day at the spa or a weekend get-a-way. Use the other half towards paying off an outstanding debt or use it to start a college savings account for your children. By investing in both you will enjoy spending the money guilt-free.

5. Invest in yourself

You have thought about taking a pottery class or learning French, but can never find the money or the time. After the holiday rush it is refreshing to relax and enjoy new things. Using your holiday bonus to help you achieve your new year’s resolution is a great way for you to stay on track with your goals and make it financially feasible. If you are considering joining a gym or taking yoga classes, now is a great time to find good deals before the New Year begins, and you will be making an investment in your health that will last a lifetime.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.