Signing Bonus Repayment Agreement

Hi,

I recently started a new job and got a signing bonus. As part of the deal there's a repayment agreement whereby I have to pay back a proportional amount for the next 2 years if I leave. So for example if the bonus is $100 and I live a year from now, I have to pay back $50.

 

It's a bit complicated since I actually get $100 - taxes - 401k deductions, but was wondering if anyone has tips on how to budget for repaying the amount. Right now I just set up a new category and budgeted the full amount (e.g. $100) and plan to transfer money from this category every month. So for example, $100/24 each month.

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  • Your plan seems fine. Categorize the inflow to a new budget category and then chip away at it. 

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  • I just started a new job & I have the same agreement, but do you plan on leaving before the 2 years? If not, why do you need to budget for it? Are you planning to budget for the full amount either way?

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