My company gives quarterly reviews and sometimes it includes a bonus. Moreover, I receive raises. Within the last year, our director of operations asked me if I prefer receiving a bonus or a raise. Without giving it too much thought, I said I’d prefer a raise.
As a result, I no longer receive bonuses but now receive more raises.
After giving it more thought, I still choose raises overall, but let’s explore why.
Bonus or a Raise?
When I decided to delve a little deeper, I did what most wise personal finance bloggers do…I took a poll on Twitter back when I was known as Ms. Fiology…
As you can see more folks chose a raise over a bonus. Additionally, I received some good comments on people’s reasoning. Since I some of you may not be on Twitter, I thought you may appreciate reading the feedback.
If you decide to get on Twitter, you can follow little ole’ me here.
Without further ado, I present you the lovely feedback I received from the Twitter community (in no particular order):
Yep, my thoughts exactly.
Actually, I think I told the director of ops that exact thing. SavorLa gets the win for the best hashtag.
Yeah, I kind of agree, Sarah.
Jamila has an awesome podcast, Journey to Launch, which I highly recommend. Hmm, this answer might have been influenced by her recent announcement that she quit her job!
Smart answer. Okay, I did place this one after Journey to Launch’s comment so I guess there is some particular order. 😉 Jay writes over at 5 to 9 living.
Chef on FIRE writes over at, you guessed it, Chef on FIRE.
Michelle was the first one to bring up this excellent point about a higher salary giving you more negotiating power. Nice! BTW, Michelle is a debt-free lawyer and writes over at Struggling to be Debt Free.
My buddy, Military Dollar, was the first to comment with these wise words.
All excellent points, Mr. Teach, Money, Life.
Thanks, Side Hustle Girl!
The right answer is often situational as of Mice and Money’s comment indicates.
This seems to be a theme as you’ll see when you read on. BTW, I love Kevin’s blog name, Life Reboot Project.
Touche, FIRE the 9 to 5, touche. This one made me think because I do agree with the saying, a bird in the hand is worth two in the bush, but I mostly love my job so I’m still going with the raise.
Sure is, Financial Orchid!
Who likes debt with their cupcakes? Not these two RNs! They paid off their debt and are now pursuing financial independence and I suspect, like cupcakes.
Fair enough. Amanda Page is an awesome writer, FYI.
Yep worthy point. Allyson writes over at Auditing Myself. Love the name.
Aah, If only I could go back to that conversation I had with the director of ops and say, both. Al is the author at The Water Whole Online.
And last but not least…
Haha, this comment didn’t help me decide but it definitely made me laugh out loud. Nicely done, The 76K Project.
I trusted my gut reaction on this because I think about money a lot. Additionally, having some feedback from the personal finance community confirmed my reasoning.
Ultimately, it comes down to a person’s specific situation and career path. For me, I plan on staying at my job until I retire so the compound effect of raises makes mathematical sense.
A bonus makes sense for someone who is not going to be at their current job long. Additionally, if you are better at managing lump sums of money, take the bonus.
This is the first year, I’ve chosen to receive raises over bonuses. I will see how my final salary turns out for 2018 compared to previous years.
Now, it’s your turn. How would you react? What would you choose – a bonus or a raise?