What should I do with a bonus?

Well, one option is to do anything you like. Why not? For those us who are always getting into debt, this enable more odd behaviour around spending.

I find it more successful in the long run to split the bonus into three. Putting a third for the past, a third for the present and the final third for the future can do this. So the past would be debt or paying someone back a favour, then for the present I have intentional things on my wish list, and of course the final third goes towards savings.

I make sure to have three month's worth of living expenses in my savings at any time. If I am self-employed or have a company, I make it six months.

The bonus can be from work, an inheritance or even a lottery win. Either way, it can be dangerous if you don't have a calm plan.

I know it misses out on the drama or what I would have called "fun of the windfall", but it means I can truly benefit from it rather than blowing the bounty and then forgetting it ever happened. Dull in the short term but exciting in the long term.

Keeping myself steady around my finances and making sure I can move forward in my choices without harm.

If I decided to pay off my debts with all the money, I could carry a lot of resentment: "there's no point in getting extra money so I might as well carry on borrowing."

Or if I spend it on a present for myself that I had not thought about and bought in the spur of the moment, it is unlikely to be what I really want. And if I put it all into savings I would feel like a miser just put everything good into the future.

By splitting it up into past, present and future I have a good chance of remembering it and looking forward to it happening again.