Summer often brings a welcome surprise: a mid-year bonus or performance reward for all your hard work. It’s tempting to celebrate with a big trip or a new purchase (and yes, you should enjoy a little). But before that bonus disappears, consider how a few smart moves now can help you build a stronger financial future.

Here’s how to make the most of your summer windfall without missing out summer fun: 

1. Save First, Then Celebrate

Think of your bonus as an opportunity to move your goals forward. A good rule of thumb? Use 80% for financial progress and 20% guild-free for something enjoyable like a weekend getaway or a fun night out. This approach helps you enjoy the moment while still building toward your future.

2. Strengthen Your Emergency Fund

If you don’t already have 3-6 months of essential expenses set aside, now’s a great time to boost your emergency savings. A strong cushion gives you flexibility when life throws the unexpected your way like job changes, car repairs, or medical costs.

3. Pay Down High-Interest Debt

Carrying a credit card balance? Your summer bonus is a great way to reduce or eliminate high-interest debt. Even a partial payment can save you hundreds in interest over time and free up your monthly budget. Less debt = more breathing room.

4. Contribute to Retirement or Investment Accounts

Using your bonus to grow your retirement savings can give you long-term rewards. Consider a one-time contribution to: 

• Your IRA or Roth IRA

• Your employer-sponsored plan (401k)

• A brokerage account for other long-term goals 

Small contributions now can grow into something significant down the line thanks to compound interest.

5. Fund a Personal or Family Goal

Have you been meaning to start a college fund, take a certification course, or finally update the kitchen? Allocate part of your bonus toward a personal goal that adds long-term value to your life or household. Money is a tool and it works best when it’s aligned with your values.

Make This Summer Bonus Count

A bonus can be more than just a reward, it can be a stepping stone to your financial future. They key is to strike the right balance between enjoying today and planning for tomorrow.

Need help building a strategy that turns seasonal income into long-term success? Arrow Advisors is here to help you map it out!

The information provided in this newsletter is based on carefully selected sources, believed to be reliable, but whose accuracy or completeness cannot be guaranteed. All information and expressions of opinions are subject to change without notice and are those of Arrow Advisors.  

Arrow Advisors offers Advisory Services through International Assets Investment Management, LLC.

Arrow Advisors is an independent and unaffiliated entity.