How to Manage Your Year End Bonus Sensibly

The end of the year is a time when most South African employees receive their year-end
bonus. The very idea of receiving extra money, especially at the end of a challenging year,
comes as both a relief and a delight to most. The big question is – what are you planning to
do with it?

What are your plans?

It is likely that you have thought about spending your bonus on luxuries you were unable to
purchase through the year. While your first inclination is to want to spoil yourself, perhaps
you need to stop and think about the long term benefits. A sensible and prudent plan on
what to do with your year-end bonus will be more rewarding than just spending it. Put
thought into using some of your bonus to pay off debt. Use a portion of your bonus towards
paying any short-term debt that you have. These could be credit cards, store cards or
personal loans. As these are the most expensive, they should be paid off first. You could also
put some of the money aside for the items you will need in the new year. While schools will
be starting later in 2021, school fees still need to be covered. The children will also need
school supplies, and likely new school shoes and uniforms. Another aspect to consider,
especially during these uncertain times, is to put a portion of your bonus in a 2021 fund. The
hard lockdown caused stress and worry to most, especially as hard-earned savings was used
for daily living expenses. Putting money aside when you have it can give you the peace of
mind knowing that you are covered in case of emergency.

You can reward yourself

You have made it through a very challenging year. There is no reason why you shouldn’t
spoil yourself a little with your year-end bonus. Especially if this done sensibly and with
careful thought. When you get your year-end bonus, enjoy the self-congratulatory feeling
that comes with it. Remember to plan your budget carefully and sensibly. Once this is in
place, you can enjoy the rewards of your hard work.

For more information on planning a year-end bonus, speak to One Debt today.