What To Do With Unexpected Money?

iamstacie

Hello,

Well today is my last day at work before I go to a better job on Monday. Imagine my surprise and subsequent disappointment when yesterday I got a letter from my employer saying the company had achieved 88% target and I would be getting 88% of my bonus! :j "Whoohoo!" I thought! But after reading down further it says that although the bonus year was March 2006 to April 2007, if you were working your notice period out when it was due to be paid then you wouldnt be getting any extra pennies

Today I got nearly double my monthly take-home pay in my wage slip, meaning I have been given the bonus. :T

Well DFW's...what do I do with it? I'm going to Bank A later to take all my money out to give to Bank B and half will cover rent and stuff and the other half will go in savings account, but after that is when I get stuck.

Is it better to...

a) Pay off CC (800)
b) Save up for another month or two and offer DCA 1 (3000 debt, settlement offer of 50%)
c) Save indefinately for mortgage deposit/rainy day fund/in case work realise they maybe shouldnt have paid me it in the first place.
d) Save half towards debts. Spend half on something nice. Like a weekend break away somewhere.
e) Something else...

What would you do? What do you think I should do? My SOA is here in case you want a better idea of my debts (though has changed since last time I posted, now about £4500 less than before! )

Thanks,
Stacie

Annie_Fanny

Being horribly practical I would call payroll to clarify the information in the letter and the discrepancy in your pay packet!

iamstacie

hahaha! The HR Dept hate me! I tried to take the company to court a few months ago (me and 13 others, but HR saw me as ringleader) I might consider giving it back if they ask but I'm not going to offer, especially since I worked hard throughout the time it was earnt.

Sammz

But if they have given it to you by mistake they are entitled to it back, I think.

flaura

personally i'd whack it towards debts ! no questions asked you could probably already negotiate on the credit card with a chunk ! you never know but definately get rid of the highest rate stuff first with your bonus !

fistfullofdollars

If it isnt seen as an overpayment of salary and they want it back. I'd pay it towards the CC if that has the higest interest rate.

Storm

I'm presuming you're just on a month's notice, so you would be entitled to the bonus as you wouldn't have been working your notice during the period when the bonus was accruing.

As for what to do with it - can you list your current debts as you've already paid off quite a chunk?

angelavdavis

I guess it depends on the date in April 2007 that they are taking to up to - if the period March 2006 to April 2007 was actually the financial year - this is typically matched to the tax year, so if your notice period (if you are on one month notice) was 30th April - 31st May, you should be OK with the bonus and it hasn't been paid by mistake (because the cut-off was earlier in April).If this is the case, then go for it and pay it off the credit cards. Its pointless having savings if you are paying interest at higher rates on debts.

plonkee

I would take 2% and spend it on something frivolous.

If you have no savings at all, I would put half in savings - to stop you from needing to use credit in the future.

I would put the remainder into your debt. If paying off a whole credit card will make you feel better then do that, if paying off a big chunk of a high interest rate debt will make you feel better, do that instead.

Shineyhappy

I would save it for a while just incase they decide they want the money back. If after 6 months they havent asked for it back, I would treat myself to fifty pounds worth of something and pay the rest of the highest interest debt.

Hope you get to keep the money!