A bonus or commission payment can feel exciting – a rare opportunity to make progress on your financial goals. Whether it’s end-of-year bonus season, a big sales quarter, or an incentive reward, these lump sums can open doors: clearing debt, boosting savings, or building long-term wealth.
But without a plan, it’s easy for that bonus to disappear.
You might be asking yourself:
Should I spend or save my bonus or what should I do with my work bonus?
At Stockspot, we help Australians make calm, confident decisions about their financial future, especially during key life milestones, like after receiving a financial windfall in the form of a bonus or commission. Stockspot Consultation gives clear guidance on how investing into a diversified portfolio could help you achieve your goals and turn unexpected earnings into meaningful financial progress.
This service is free and obligation free.
Common pain points when receiving a bonus include:
- Should I spend, save, or invest my bonus?
Finding a balance between saving some money for a rainy day, spending some to celebrate your windfall and investing for long-term goals could be a simple solution. It’s important however to make sure that your saved money isn’t slowly losing its buying power. - How can I start investing my bonus, I can’t access financial advice?
Many Australians feel locked-out of the financial advice market, and investing alone via a DIY investing method can feel overwhelming – and can see you losing out on returns. Stockspot remove this barrier to entry, providing investment portfolios for clients with balances ranging from $2,000 to $2 million+ providing access to financial advice and full portfolio management.
Many Australians receive bonuses or commissions without a clear strategy. Whether it’s $2,000 or $50,000+, planning ahead can help you avoid regret and build momentum.
Smart first steps when receiving a bonus
Receiving a windfall or bonus has huge potential to build foundations for long term financial growth, before making any decisions consider:
1. Pause and reflect
Don’t rush into spending. Park the money in a high-interest savings account while you assess your options. A little planning can turn a temporary windfall into lasting value.
2. Review your financial picture
Consider your current financial health:
Do you have high-interest debt?
Is your emergency fund complete?
Are there short-term savings goals you’re working toward?
3. Define what success looks like
Would you rather reduce stress, increase freedom, or grow wealth? Use your bonus or commission to support your most meaningful financial goals, not just short-term pleasures.
Smart financial decisions to make with a bonus or commission
Pay down high-interest debt
Paying off credit cards or personal loans could offer a guaranteed return of 15–20% and stop you accruing additional debt. It’s a powerful first step.
Top up your emergency fund
A buffer of 3–6 months’ worth of expenses gives you flexibility and peace of mind. If yours is incomplete, consider using part of your bonus to build it up.
Invest for the future
A lump sum is a great way to kickstart or boost your investment portfolio. Low cost ETFs are a simple vehicle to keep fees low, so you see more of your returns growing year on year. Diversified portfolios, like those offered by Stockspot, can also help you get a mix of defensive and growth assets, to meet your time horizon and risk capacity. Stockspot’s diversified ETF portfolios are tailored to your risk level and goals. Bonus lump sums can help you reach major goals faster, like a home deposit, early retirement, or a child’s education.
Reward yourself, responsibly
It’s okay to spend a small portion on something meaningful or joyful. Adopting something like the 80/20 rule, where you invest 80% and enjoy 20% can help you strike the right balance.
Explore how Stockspot can help you invest your bonus
Stockspot advisors can discuss with you what your life goals are, and when you want to achieve them. A financial strategy can ensure all your savings supports those goals, and are not losing their buying power, while you build towards your long term goals.
Through Stockspot Consultation, we offer investment guidance to help you:
- Understand your investing goals with your savings to reach your deposit goals
- Align your portfolio with your values – such as sustainable investing
- Invest in a smart, low-fee portfolio
- Automate top ups and rebalance your portfolio to remove emotion from decision making
- Make informed decisions without pressure
We advocate for simple wealth management solutions that don’t cost you your returns. Both data and feedback from Stockspot clients indicate that complex strategies often underperform simpler investment structures, like those offered at Stockspot.
At Stockspot, we advise our clients to invest in a diversified selection of ETFs. This strategy has consistently outperformed similar funds over the long term.
Want to know more about Stockspot?
Stockspot is Australia’s largest online investment adviser, helping over 16,000 Australians grow and protect their wealth with evidence-based, low-cost portfolios. Find out about our portfolio performance here.
