There's a lot of talk amongst people about how they will be spending their bonuses this year. One thing that raises a red flag in my mind is the number of people who are looking to buy things with significant leverage. Be it a condo, a vacation house, a car, etc. I am the first to say you should be living your life to its fullest. Nothing wrong with spending fairly lavishly while you're making the big bucks. In fact, I'd recommend it--there's nothing like spending while you're young.
Here's the catch though, you can't be spending a lot on credit. As someone in the finance industry, one of the most volatile in the world, you simply need to play a little bit defensive in the debt game. A lot of places in NYC won't let you buy with high leverage because of the number of finance folks who commit to a lot of debt and then can't pay off in the future. I've known too many people blown out of the industry and have seen the devastating effects of high debt with no income. If you use leverage, make sure you're investing in something with a reasonable upkeep cost or positive cashflow. Keep in mind that you could be out of a job tomorrow, even if you think you have a relatively protected job. I've seen highly profitable people and extremely cheap labor blown out the door with little to no warning.
Enjoy your bonuses, you've earned them. Spend lavishly, you can. Heads up on that debt though, you haven't made a living of it yet.
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