It’s that time of year. Companies are giving out bonuses before the holidays. One of the companies I work for gave me a Christmas bonus. I had a feeling something was coming my way because I do their accounting and saw what they did in prior years just through doing my regular work.
I had already budgeted for Christmas presents so any bonus was definitely “extra” money. Since my savings has been depleted this year due to multiple large medical expenses, I decided to put my bonus in my savings account. I’m sure I could have found ways to spend more money on others and maybe even myself, but I’d rather have peace of mind that there is money available in case of something like a car breakdown or more medical expenses. And trust me those things will happen, it’s just a matter of time!
Having a small emergency fund as a cushion is so important for everyone. When an unexpected expense comes up, the stress level is much lower when money is already available to handle the emergency. The emergency can be paid for and then the focus can be to build the emergency fund back up.
In my case I work at a lot of part-time jobs and do freelance work, so my income isn’t as predictable as it was when I was a teacher with a monthly salaried paycheck. I really have to watch every penny to make sure I can pay my bills and buy necessities. I’m working towards increasing my income but that takes time. In the meantime I feel better knowing that I’m being careful with my money and trying to make the wisest decisions I can.