Bonus
Australian data company AirTrunk has made headlines by awarding a remarkable $22 million in bonuses to its 330 employees. Pixabay

As the holiday season brings the prospect of a Christmas bonus, many are faced with the question of how to best use this extra cash. Whether it's rewarding yourself, tackling debts, or investing for the future, it's important to pause and reflect before being swayed by holiday sales.

AirTrunk, an Australian data company, has made headlines by awarding a remarkable AU$22 million in bonuses to its 330 employees, celebrating its acquisition by U.S. private equity powerhouse Blackstone, News.com reported.

The bonuses, which amount to about AU$65,000 per worker, come as part of a massive AU$24 billion deal -- an impressive leap from AirTrunk's previous AU$3 billion valuation in 2020, when it was backed by Macquarie Asset Management and PSP Investments.

In addition to the significant bonuses for its staff, over 100 senior employees are also benefiting from annual bonuses and profit-sharing arrangements.

The acquisition also catapulted founder and CEO Robin Khuda into the upper ranks of Australia's rich list, marking a major milestone for both the company and its leader.

Bonus offers more than just a short-term treat; it's an opportunity to set yourself up for long-term success. This year, give yourself the gift of financial clarity and the confidence that comes with making the most of your hard-earned reward.

Enjoy responsibly

While it's tempting to splurge, strike a balance between short-term enjoyment and long-term financial security. Allocating 10-20% of your bonus for a holiday, gift, or experience allows you to indulge without compromising your financial future.

Tackle high-interest debt

Put the majority of your bonus to work by reducing high-interest debt. Paying down credit cards and personal loans will provide immediate relief and free up your future income for more productive uses, helping you move toward financial freedom.

Create a financial safety net

Building an emergency fund is essential for long-term security. Aim to save enough to cover three to six months of living expenses in a high-interest savings account. While it may not be as glamorous as a big-ticket purchase, this financial cushion ensures you're prepared for the unexpected, offering invaluable peace of mind.

Grow your retirement savings

Consider boosting your superannuation with a portion of your bonus as a step toward building long-term wealth. Additional contributions within the concessional cap not only strengthen your retirement savings but also provide tax benefits. It's a smart move for both the present and your financial future.

Pay down your mortgage faster

If you're a homeowner, making extra repayments on your mortgage can lead to substantial savings. Reducing non-deductible debt, like your home loan principal, can help save interest over time. It can speed up your journey to financial independence while improving your long-term cash flow.

Give back while you receive

The festive season is an ideal time to donate to charity. By allocating part of your bonus to a cause close to your heart, you can make a positive impact while enjoying tax benefits.