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Why a Bonus Isn’t as Good as a Raise (Even Though It Seems Awesome)

It seems that everyone is getting bonuses due to the new tax breaks. Walmart, Disney, Home Depot, and Best Buy are among the many giving out bonuses up to $1000 to employees. There’s nothing better than a nice lump sum of money.

Is there?

With a lump sum (albeit a good portion is taken out for taxes) you can pay down–or maybe even off–a loan, start an emergency fund (my personal recommendation if you don’t have one), buy something you’ve needed or wanted, or simply have some breathing room. It’s a fantastic thing, and everyone who got one should be thrilled.

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