Tuesday, September 11, 2012

Bonus update

I received my annual performance review yesterday, & the news was much better than I'd expected. I received a small raise (just over 4%), & a substantially bigger bonus than I'd imagined. I planned for $10K (netting $5K, after taxes, deductions, etc), but hoped for $14K (netting $7K). Instead, my bonus was $36K. Wow! I'm still in shock, trying to figure out how to allocate the additional funds.

From my previous post:
How does this affect our overall financial plan?

  • We're carrying a small balance on our credit card, as a result of booking a trip for November & a few planned vacations in August. We will use part of my stock vest to pay that off.
  • The rest of the stock vest will be allocated as follows:
    • $10,000 - to the emergency fund. We drained this when our taxes came due in April & struggled to fully rebuild this.
    • $10,000 to our tax fund for our 2012 taxes. Thinking ahead after last year. ;-)
    • $2,000 - my mom's 60th birthday trip
    • $5,000 - we're taking the kids to Hawaii in November
    • $1,720 - we're buying the kids each 5 tuition credits for college
    • $3,000 - extra mortgage payment
    • TBD - I've tentatively slotted my net bonus at $5K, but I'm hoping it will be higher. If it is, I will likely split the difference between our emergency fund, and paying down our mortgage.
And, now that I have the bonus amount, I'm thinking I'll funnel the majority of the remaining funds into an additional mortgage payment. We also bought a sofa over the weekend, & are thinking about a few other home improvement projects, so I'll see what the actual net of my check is going to be, & go from there.

HOT DOG! I'm so happy. :-)

Edited to add - I'm also planning on: buying myself a new pair of jeans, an expensive hair product I want, & getting a massage! My personal splurge shoudl be under $300, so reasonable, but fun. :-)


  1. Congratulations! My largest bonus ever was $2000, so I can't even imagine 36k!

    Enjoy your personal splurge....totally reasonable, and obviously earned.

  2. That is an impressive bonus! It would be like hitting the lotto for us!