By: Lifestyle Reporter
The end of the year means that most people have different payouts coming their way. If you have a thirteenth cheque or a payout from a stokvel coming your way, the odds are that you’ve already spent the money in your head. But is that budget in your head the most effective way to spend the money?
At this time, most South Africans are probably just focused on finishing the year with the loved ones we have left, remembering those we lost. But if you are bringing home a bonus/13th cheque then you should have a clear direction for how you spend it.
Pay it toward your debt
The thing that makes debt feel deafeating is the interest accumulated over the repayment period. If you use the lump sum of your bonus to pay for your debt, it should make a big dent in what you owe.
Pay your towards your child’s 2021 school fees
If COVID-19 taught us anything this year, it’s that life brings so much uncertainty. We were never prepared for the financial lows the pandemic brought and preparing for these rainy days should be a part of our routine now. We need to think ahead and make more informed financial decisions. Getting a head start on school fee payments is a good place to start.
Securing your child’s academic year early means you can free up some monthly fees or bank that.
Invest, buy shares and open savings accounts
If you can survive the holidays without touching your bonus, then do so. We’re advised to limit our social activities and this may just be a good thing. If it means you are not spending your bonus on unnecessary splurge buys. Put your bonus away in a fixed term, savings account which will build interest over time. Invest your bonus by purchasing shares or putting a downpayment on a house. Think long-term before you spend your bonus.
Invest in you
There’s no denying that upskilling yourself can give you an edge in your career or in your creativity. If you’ve been thinking of going back to school or learning a new skill, your bonus could go a long way at minimising costs for the year.
10% treat, 90% responsible
If you have no pressing debt or expenses, the best thing to do would be to book yourself and/or your family a well deserved holiday. Either local or international. Before another worldwide pandemic hits and the entire population gets banned from leaving their homes again. Work within your means but the idea is to give yourself a 10% treat whilst being 90% responsible.
How are you spending your bonus money this festive season? Tweet us your response on @KayaFM95dot9 using the hashtag #ReclaimSummer.