We’re eagerly awaiting our year-end bonuses. While extra money is always welcome, you must bear in mind that the wait until January’s pay cheque is very long and can be financially trying.
Wikus Olivier, debt counsellor at DebtSafe offers the following advice to help make that rand last longer.
Planning is crucial
When you’re aware that you’ll be receiving a bonus, draw a plan of how you want to spend it. This will help you map out exactly where the money will go to – whether towards activities, Christmas gifts, holiday trips or preservation.
Planning provides perspective
Not only will this allow you to allocate where your extra spend will go, but you will also be able to keep track of your spending. Bear in mind that this will be last salary you receive until the end of January. Allocate some money to cover expenses until that period comes to an end.
Your bonus decrease debt
Most workers have some form of debt, and since a December salary can typically be double, you can alleviate pressure from January by paying off some accounts sooner. This does not have to account for your entire bonus, even just a portion can be well used to pay off some – if not all – of your debt.
Investing in the bigger picture
If you are not going away over the holiday period, and do not have debt that you feel needs to be paid off, an excellent way to use your year-end bonus may is to invest it- whether it’s for your children’s education fund, topping up your own retirement fund or acquiring some healthy blue-chip shares, there is a real peace of mind when your future is a little more secured.
