For many people, the end of the year is a time for annual bonuses. That little bump in pay is always exciting, and it can prompt daydreams about vacations, a new boat, a revamped wardrobe, a five-star dinner, or any number of fun purchases or experiences. And why not? You’ve worked hard all year and earned your bonus. What’s the harm in spending it on a fun splurge?

Ultimately, it’s up to you to decide how you’ll spend your bonus dollars. If an elegant meal in an expensive restaurant will bring you joy and “fill your cup” for days or weeks ahead, that’s just fine. As long as the expenditure doesn’t interfere with your financial obligations, I see no problem with enjoying a nice meal or some other treat. This type of spending does become problematic, however, when it is impulsive, doesn’t end up meaning much, and/or significantly detracts from your goals.

For many of us, it pays to sit down for a few minutes and think about the best ways to spend that end-of-year bonus (maybe a nice meal is part of the plan!). Here are 5 ideas:

1. Tackle Debt

Admittedly not as glamorous as a luxury vacation or a spa day, paying off debt is a practical (and essential!) way to spend your bonus dollars. Certain types of debt (such as credit card debt) are associated with steep interest rates that can keep you stuck in the red. When you’re paying a rate of 18% or 20% each month, you’re losing your hard-earned dollars. With that in mind, it makes sense to tackle that debt!

2. Invest in Your Home

If you’re like most people, your largest material investment is your home. And a home is constantly used and abused, with certain areas needing revamping or replacing over the years. There are practical updates/replacements, such as buying a new furnace or updating the kitchen stove, and then there are superfluous home remodels that may or may not add value to your home (adding highly customized/trendy fixtures, converting a bedroom to a closet, etc.). To find out which home improvements tend to add value to your home, I encourage you to do your research (this article is a good place to start).

3. Consider Your Investments

Before you decide what to do with your year-end bonus, it may be a good idea to pay your financial advisor a visit. Your advisor likely has some advice and insights about how to make the most of your dollars through investing (maxing out your retirement accounts, buying certain securities, etc.). You don’t have to make these decisions on your own. A trustworthy investor should be able to steer you in the right direction.

4. Plan for the Future

Do you have kids that are about to be in daycare or, perhaps, kids that will be heading to college soon? Does your house need a new roof? Do you hope to take a nice vacation next year? Is your emergency fund not as well-equipped as it should be? Though you might not know everything your future has in store, it’s a good idea to be as well prepared as possible.

5. Invest in Yourself (and Your Purpose)

If you’re hoping to pick up a new skill or make a career change, your bonus money can help you do that. Look for community classes or online courses that can help you develop the skills, experiences, and talents you’re seeking. In this blog, I often talk about Purpose (with a capital P!) in relation to work. If your current job is not as fulfilling as you’d like, you may want to actively work to transition to a new one, which could involve pursuing specific training or certifications.

It’s easy to spend bonus money, and much harder to practice restraint, form a plan, and follow through. However, your future self will thank you for the disciplined decisions you make today. And don’t forget, it’s okay to splurge a bit and spend some of your extra paycheck on something fun—just make sure you’re not doing it to the detriment of your overall financial goals.

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