How much of a work bonus should I save versus spend?

A useful default is to treat a bonus like a mini windfall and split it deliberately rather than letting it evaporate. One common framework directs the large majority, say 80 to 90 percent, toward goals, first covering any taxes if it was not fully withheld, then your emergency fund, high-interest debt, and retirement or other investing, while reserving a small slice, 10 to 20 percent, for guilt-free enjoyment. Because bonuses are irregular and not guaranteed, avoid building them into your regular budget; keep your fixed lifestyle affordable on base pay alone. Bonuses are often withheld at a flat supplemental rate, so check whether enough tax was taken out to avoid a surprise at filing. Automating the transfer the day it arrives keeps you from mentally spending it first.