Your employer has just informed you that you have a generous bonus coming to you for your hard work this year.
You need to have a plan for it so that you don't wake up a month or two later and realise that it's all gone. Here are some tips on how to use your bonus:
Start by paying off your debt
One of the reasons why people do not save is because they are struggling with levels of debt, sometimes overwhelmingly so.
So your first priority should be to take your bonus and pay off any outstanding debt you have.
Do not use your bank account as a storage for your bonus. You don't want to make it easy for yourself to whip out your debit card and blow all that money in a blink of an eye.
So before you do anything, put the bulk of it out of sight until you know what you want to do with it.
Put money aside for emergencies
Emergencies, by their nature, are unpredictable. When they happen, they can interrupt your financial stability.
The rule of thumb is that you must have at least three to six months of expenses in an emergency savings account.
Pay your future expenses in advance
Another smart move is to pay off some future expenses in advance.
You could pay your child's school fees ahead of time, for instance, or an insurance policy upfront for a year. This will help you to free up some of your monthly budget.
Start investing for your future
You need a minimum of just R500 a month to start investing. You can invest in a unit trust for your short and long-term goals, and benefits include:
l You can invest in shares, property, bonds and money market.
l You can increase your monthly premium or add money as you like.
l Your money is always available for withdrawals.
l The decisions about which assets to buy are made by expert asset managers.
l You can monitor your performance online or when you receive a quarterly statement.
For help with your investments, call Inkunzi Wealth Group on 087- 160-0018 or invest@iwgsa.co.za
Smart ways to spend your year-end bonus
Your employer has just informed you that you have a generous bonus coming to you for your hard work this year.
You need to have a plan for it so that you don't wake up a month or two later and realise that it's all gone. Here are some tips on how to use your bonus:
Start by paying off your debt
One of the reasons why people do not save is because they are struggling with levels of debt, sometimes overwhelmingly so.
So your first priority should be to take your bonus and pay off any outstanding debt you have.
Do not use your bank account as a storage for your bonus. You don't want to make it easy for yourself to whip out your debit card and blow all that money in a blink of an eye.
So before you do anything, put the bulk of it out of sight until you know what you want to do with it.
Put money aside for emergencies
Emergencies, by their nature, are unpredictable. When they happen, they can interrupt your financial stability.
The rule of thumb is that you must have at least three to six months of expenses in an emergency savings account.
Pay your future expenses in advance
Another smart move is to pay off some future expenses in advance.
You could pay your child's school fees ahead of time, for instance, or an insurance policy upfront for a year. This will help you to free up some of your monthly budget.
Start investing for your future
You need a minimum of just R500 a month to start investing. You can invest in a unit trust for your short and long-term goals, and benefits include:
l You can invest in shares, property, bonds and money market.
l You can increase your monthly premium or add money as you like.
l Your money is always available for withdrawals.
l The decisions about which assets to buy are made by expert asset managers.
l You can monitor your performance online or when you receive a quarterly statement.
For help with your investments, call Inkunzi Wealth Group on 087- 160-0018 or invest@iwgsa.co.za
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