Core Insights - The article emphasizes the importance of wisely using a year-end bonus, suggesting that it should not be solely spent on luxury items but rather allocated towards financial priorities for long-term benefits [2][4][6]. Financial Priorities - A recommended approach is to allocate 10-25% of the bonus for personal splurges while directing the remainder towards financial goals [5]. - For example, with a $2,000 bonus, suggested allocations include $200 for a holiday meal, $500 for an emergency fund, $900 for credit card debt, and $400 for retirement savings [7][10]. Long-term Growth - The article advocates for investing the bonus in ways that promote long-term financial growth, rather than simply depositing it without consideration of interest rates [9]. - Building momentum towards financial goals, even if not fully achieved with the bonus, is highlighted as beneficial [6].

Fact checked by Vikki Velasquez simonkr / Getty Images Constantly worrying about your finances because of the latest headlines rarely pays off—and it can even be detrimental to your financial well-being. Key Takeaways Constantly reacting to headlines can undermine long-term retirement security, so it’s important to know when you should tune out the noise. If you’re feeling unsure, a financial plan helps you stay disciplined and avoid emotional decisions. News matters most when it reflects sweeping ch ...