Freedom or pressure? When a bonus doesn’t always feel like a win
We’re often led to believe that a windfall should feel like a gift. The “your ship has come in” moment of a bonus, inheritance or long-awaited payout.
Whether it’s a six-figure bonus after months of long hours in a high-pressure environment, or a generous legacy from a relative you loved, we assume the money will bring freedom, excitement, or perhaps just relief.
But sometimes it doesn’t. In fact, quite often it can bring a wide range of fairly negative emotions: confusion, guilt, pressure. A nagging sense that you should do something clever with it - even if you’re not sure what.
Even successful professionals with high incomes can feel overwhelmed by the responsibility. If you’re a solicitor or equity partner receiving your annual bonus this summer, those feelings may be even more acute. July is a key moment in the calendar – for bonuses, for self-assessment tax, and for thinking ahead. But working out what to do with a lump sum is rarely just a financial decision – it’s an emotional one too.
Emotional undercurrents
Most of us haven’t been taught how to handle money at this level, which makes it easy to feel exposed. If you’re the first in your family to receive this amount of money, or it’s your biggest bonus to date, the responsibility can weigh even more heavily.
Some may feel the bonus isn't worth the hours, pressure, or targets that came before it. Others may feel exposed by their own uncertainty over what to do next with a lump sum. Should it go into your pension? Should you spend it? Save it? Move it?
And underneath it all, there may be deeper questions such as: “Do I even deserve this?” or “Was it really worth it?”
One way to think about it is that handled well, it can become more than a financial event. It can be a step towards long-term freedom – a shift towards clarity and choice. This is about making intentional decisions – ones that align with you and your future self. Do you want to feel the benefit of that money now, later or both?
In that sense, it reminds me a little of a recent conversation with my young son where we’d been talking about needs vs wants. Harry wanted a new Barcelona goalkeeper strip. He discussed saving for it, and we worked out it take him a month before he could buy it. He then asked if he could borrow the money to get it now.
The same intentional thinking applies here: delayed gratification vs. instant reward. It’s the tension between the present you and the future you – you may feel you’ve worked hard for this and deserve it, or need a break. But how do you balance that with the future you?
There’s no single answer. But here are some good places to start:
Pause before you spend: Give yourself a beat to decide if your choices align with your values.
Talk to someone impartial: I can help you explore the emotional and technical sides of the decision.
Make it intentional: Whether you use it to build your pension, reduce debt, support your family or treat yourself, the important thing is to do it with intention.
Of course from a financial planning perspective, there are several considerations worth factoring in:
Bonus sacrifice: If your employer allows it, sacrificing your bonus into your pension could be a tax-efficient way to grow your long-term wealth.
High earners and pension limits: Some high earners may have already maxed out their pension contributions, but for those earlier in the equity partner journey, the opportunity is bigger. The power of compounding means the earlier you save, the more time that money has to grow, so putting that money into your pension now is a good idea here.
Leave it in cash: Some clients admit to simply leaving bonuses in cash. It's not ‘wrong’, but it's rarely intentional. The danger is inertia - and missing out on opportunities for growth or tax mitigation.
Identity, insecurity and wealth
For many, money isn't the whole story. A bonus, windfall or lump sum might be the dream on paper, but in reality, it can bring new insecurities.
Some feel trapped by the lifestyle their income supports, even as they dream of more freedom. One client described feeling more insecure with money than without: "I don't have to live like this," she said. "But I can't seem to stop."
So what should you do? A bonus isn’t just a financial event. It might be something that invites a little soul searching or even discomfort. But handled well, it can become more than a reward for hard work. It can be a step towards long-term freedom.
If you’d like to explore how to use your bonus or lump sum wisely, I can help you make a plan that aligns with what matters most to you. Book a call with me to start making intentional decisions about your future.