For those whose bonus is a large proportion of total comp, how do you think about budgeting?
Roughly 50% of my total comp is in bonus, paid out in cash at the end of the year. Generally, I tend to budget based on the base, while the bonus is just a cherry on top. However, when I'm looking to rent a place and a $3500 apartment could be 50% of my monthly base take home, or could be much lower after year-end bonus is considered.
So what's the best way to think about it?
Edit: I'm in finance where this arrangement is pretty standard - the comp is just back-loaded. Not in a sales role where it's commissions based. The bonus is virtually stable but could fluctuate by up to ~20%. The only situations where I wouldn't get the bonus is if I'm fired or if I quit.