We often tend to splurge our bonus money to thinks that we don't really need. Instead of spending the money on a new smartphone or partying to glory in a upscale pub; you can make better use of your bonus money.

Here are a few prudent ways to use extra cash for a more secure financial future.


If you are running behind your credit card, you can utilize the amount to payback your balance amount. You can also make a part payment on your home or personal loan. Part payment can help in decreasing the loan tenure or the amount of EMI.

Buy Insurance

Many of us procrastinate over buying a term or health insurance. Use your bonus to finally buy a health insurance or term insurance. You can also use the money to pay the premiums of existing insurance policies.

Save in tax saving schemes

You can save on taxes by investing in Fixed Deposit (FD) or equities. Investing in a equity mutual fund will help you earn handsome returns in the long term.

It is a win-win as you will also earn interest on your money while saving taxes.

Invest for retirement

The earlier you think about building a retirement fund, the better it is. Investing you bonus in a compounded return instrument like mutual fund, PPF or a pension fund will multiply your money in the long term. The math is simple, the more you put, the more returns you will get on your retirement.

Splurging money will give momentary satisfaction and happiness. But, when you will invest for your future and to minimize risks, you can enjoy a more secure and peaceful life.