For those fortunate to get a bonus this year, you know that there are endless options to spend your money on. At times it can even be overwhelming or discouraging when you see all the bills you need to pay and the gifts you want to buy for your loved ones for Christmas.
Instead of just spending your bonus and wasting it this year, we’ve put together 10 smart tips for you to spend your bonus and to help you avoid buyer’s remorse.
- Pay off debt
If you have debt that you can clear with your bonus – do it. The interest you’re paying on there is just taking more off your hard-earned money every month.
- Use the 50-30-20 Rule
If you have large amounts of debt, then use 50% of your bonus to pay off debt, 30% should go to your savings and 20% you can use to enjoy yourself. If you don’t have debt, then you could save 60% of your bonus and 40% you can use to have fun. Just don’t spend it all.
- Start an emergency fund
If you don’t have an emergency fund – then now is the time to start one. If you incur an emergency, then you will have money saved to cover the costs.
- Pay School fees in advance
If you have kids, you may want to consider paying their school fees in advance. Most schools offer a discount. You will have peace of mind for the year ahead and you will save money too.
- Maximise your Retirement Annuity contributions
You have until the end of February 2023 to maximise your RA contributions if you have not already done so. Not only will you increase your RA savings, but you will get a higher tax refund next year when you do your tax returns.
- Make a payment on your home loan
If you want to pay your home loan off faster, then why not make an additional payment with your bonus?
- Maximise upfront discounts
Many organisations and service providers offer a discount if you pay annually instead of monthly
- Invest in yourself
If you want to learn a new skill for work or something you’re passionate about, then enrol in a course. Maybe you want to get fit and join a running club, then do it. Your personal development and growth is important.
- Start investing
If you haven’t started investing yet, then now is a great time to start. If you already have investments, then now is a great time to boost those investments.
If you know of a family member that is struggling or an organisation that you would like to support, then use some of your money to give to others. There really is nothing like being able to help others that are in need.These are just some ways that you can spend your bonus wisely this festive season. A bonus is extra money, but there are several smart things you can do than just spend and waste it. Invest in your future today..