How to Better Manage Bonus Money and Other Lump Sum Payments

Beyond Finances

Do you earn bonuses, commissions, grants of equity comp, or other types of variable income? Then you better know not just how to manage it, but also how to optimize these lump sum cash inflows to help you achieve your goals and grow your wealth.

In this episode, we'll explain how to do it. Join us as we discuss:

• What counts as "variable income," or what lump sums of money you may receive over time
• The number-one thing to do if you receive a lump sum of cash, from any source
• Two main methods to manage cash flow for solid but unpredictable income streams
• The mistakes to avoid when you receive any kind of lump sum payment
• Why you have to invest some of these cash inflows

For our financial planning clients, managing lump sum cash inflows is a constant conversation. Getting this right becomes especially important when we're talking about total incomes of $500,000 or more, when half or more of that sum will hit quarterly, semi-annually, or even once a year.

Managing big lump sums like that is a skill; cash flow management can get complex not just due to the size of these cash infusions, but due to timing. This episode will help you strategize and plan around your variable income so you can achieve your most important financial goals.