Annual bonus is something which every employee waits for with excitement. Most of the people plan well in advance the ways to spend the bonus money before it is credited in their account. But some people end up regretting how unwisely they had spent their money. So it is better to manage your bonus sensibly foreseeing all your future needs and emergencies. Here are few tips to spend your annual bonus smartly-

Pay your loans

If you have any debts, use your bonus money to clear it. Leading a life without any debts is a blessing and you need not worry about the interests you have to pay throughout your life. One might be having numerous loans like education loan, housing loan, vehicle loan, etc. The major prominence should be given to the loan which has maximum interest. Even if there is stiff pre-payment penalties, prepay and close the loan.