Should I Use My Bonus to Buy Into the Business I Work For?

Ramsey Everyday Millionaires

Ramsey Network

Careers, Investing, Business

4.6 • 3.6K Ratings

🗓️ 1 December 2025

⏱️ 3 minutes

🔗️ Recording | iTunes | RSS

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Transcript

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0:00.0	This episode is brought to you by SmartVestor.
0:07.9	Connect with an investing pro near you at ramsysolutions.com slash smartvester.
0:13.8	Melissa's in Hartford, Connecticut. Hey, Melissa, what's up?
0:16.8	Hi, Dave and Rachel. Thanks so much for taking my call.
0:19.4	Sure. How can we help?
0:20.5	So I work for a home health agency. They put me on a bonus structure where I'm now making
0:27.2	5% on the incremental above my quota. As long as I hit my quota, I get 5% of the gross profit
0:34.4	above my quota. And they pool it pretty much to the end of the year.
0:39.3	They cap my bonus at 2,500 a quarter, and then they're going to pool and whatever is left over,
0:45.3	I'll get a lump sum at the end of the year.
0:48.3	I'm wondering if I should take that lump sum and invest it back into the company for equity, or if I should
0:56.7	focus on paying off my mortgage, which is my last remaining debt.
1:01.2	Regardless of whether you have a mortgage or not, you do not invest into a small business
1:04.9	where you're a minority shareholder.
1:06.9	Okay.
1:07.6	Because you have absolutely zero control.
1:10.8	You could wake up six months later.
1:12.1	The owner starts doing cocaine, runs a thing into debt, runs the whole thing into zero, and all your monies were zero, and you have absolutely no governmental say.
1:19.7	The governance documents when you're a minority shareholder.
1:22.5	In other words, if you don't own 51 percent, your vote don't count.
1:26.7	Okay.
1:27.3	And they can vote for stupid stupid and you have to stand there
	...

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