Your company has just awarded you the Diwali bonus. You want to use the money to buy the latest mobile phone. But is it the right way to spend your bonus? Is there any other way to make the best use of this surplus cash?

Well, there are actually some things you can do with the money that will help your finances in the long run.

• Clear off any pending debts: Do you have any credit card debt? Have you taken any personal loan? If yes, then use this money to repay any such debts. It will save you a lot of money in terms of interest.
• Build a corpus for retirement: Retirement is one of the most stages in a person’s life. Many people don’t pay serious attention to building corpus for retirement. But when they retire they find out that they don’t have sufficient funds to meet their expenses. So it is very important for you to start building your retirement corpus from the time you start working. Use your bonus to build the retirement corpus.
• Buy additional insurance: Do you know insurance is very important for you and your family? You should have both medical as well as life insurance. Use the excess cash to buy both these insurance.

These are some of the best ways in which you can use your bonus money.