<prompt> Human: Hello everybody! I realised I dont have any idea how bonuses really work and thought Id ask for your input. I hope what I put makes sense. ThanksIf I have a 50 000 salary and a 50 00 bonus my total income is 100 000. However, my weeklymonthly available income for rentbills etc for the year only totals half that. Do most people who earn bonuses usually just live off their salary and savespend their bonus? Or do they find some way to incorporate that future income into their weeklymonthly expenditure?What if someone lives in an expensive place like Manhattan, London etc where 50 000 doesnt cover their annual costs but the 100 000 does?Thanks.  <response>: Do most people who earn bonuses usually just live off their salary and savespend their bonus? Most people do incredibly stupid things, so dont model yourself after other people. The conservative answer is to live off of your base salary as if the bonus didnt exist. At the very least, you cannotshould not be spending more than you actually have, because nothing is guaranteed and you never know what can happen. Live of of the 50k for the first year, and then if you do get the 50k bonus, you can put that in the bank and use it to smooth out your necessary consumption the next year. The ideal answer would be to keep living off of the 50k and saveinvest all of the bonus, but that may not be possiblereasonable. But whatever you do, do not go into debt the first year in anticipation of a bonus you may get in the future. 