Don't Count On Bonuses

Bonuses do not count as income until you actually receive it.

Always plan your cashflow with a ‘sure thing’. Variable income like dividends, interest, work bonuses and gifts should only be allocated in a budget AFTER they have actually been received. Can you imagine allocating and spending the bonus money ahead of time only to find out it won’t be coming, or at a reduced amount. It could greatly set you back.


I once anticipated a $5,000 work bonus and I stupidly bought something on credit card ahead of time. I then found out that the company was only going to pay $1,000 that year as the company results were worse than expected. I had a tight monthly surplus at the time and the repayments made my life difficult for the next 10-12 months.

Further Reading

Bonus (wikipedia)