Should You Prepay Home Loan or Invest?
A framework to decide between debt reduction and investing surplus money.
Annual Bonus Allocation Rule in India
A practical split rule to allocate annual bonus across debt, savings, and long-term goals.
Quick answer: A rule-based bonus split improves discipline and prevents one-time spending spikes from derailing goals.
Key Points
- Assign fixed percentages to debt, emergency fund, and investing.
- Pre-decide usage before bonus credit hits account.
- Review the split annually as liabilities change.
Related Finance Guides
Emergency Fund vs Loan Prepayment Priority
Decide when to prioritize emergency corpus over aggressive loan prepayment.
Frequently Asked Questions
Should bonus be fully invested?+
Not if liquidity and debt priorities are still underfunded.
Can bonus allocation improve tax outcomes?+
It can indirectly, through better planning and timely declarations.