With the festive season around the corner, it’s also the time of year when you receive your 13th cheque. So while you may be tempted to splurge this festive season, there are better things to do with your bonus so that you will benefit from it all year. Here are a few ideas…
Tip #1: Pay off debts
A lot of people use their 13th cheque or bonus to pay off their credit card or store accounts – and it’s a good idea. If you can make a dent in any dangerous debt then you’re already starting the New Year on a cleaner slate. Also, by paying off debt faster, you help keep your credit record healthy.
Tip #2: Top up your pension fund
Provided your total contributions are within the tax limit of 7.5% of your pensionable income, you’ll be able to deduct it from tax next year. A great way to get a little extra cash when you need it most.
Tip #3: Save 50%
With the economy struggling, you should run your households the way you do your business – by cutting costs. And that means saving at least 50% of your bonus. This will give you access to cash should you need it and reduce your need for credit.
Tip #4: Buy a new set of tyres
This will save you on fuel and the maintenance of your car.
Tip #5: Pay your child’s annual school fees in advance
This usually means you get a discount on the year’s fees. You could end up paying for only ten months instead of 12.
Tip #6: Spread the money across your goals
So, you have too many goals to save towards but not enough money, right? Start small by allocating portions of your bonus to each of these goals. It will give you some sense that you’re closer to reaching these goals, and you’ve made a start. For example, make a lump sum payment into your holiday kitty or scrapbooking business. Each month, try to put a couple of hundred rand towards your goals. It will soon add up.
Tip #7: Pay your hospital plan or insurance policy upfront for a year
This should drastically reduce the amount you owe insurers over the coming year. And it’s one less thing to worry about.
Tip #8: Treat yourself
Spend 10% on anything you please. After all, you’ve worked hard this year and deserve a bit of fun!
Speak to Indwe Risk Services for advice on the best insurance options to suit your pocket.
Contact us: 0836 13 13 14 and we will work with you to ensure you have a safe financial future.