Residents receive tips on how to spend their bonuses
JOBURG - Certified financial planner, Wouter Fourie offers consumers a few tips on some of the best ways to spend their annual bonus during the festive season.
Fourie urged residents to be financially savvy with the extra money to avoid being broke and in debt in January.
“One of the most meaningful ways to spend your bonus is to tackle your most expensive short-term debt,” he said.
“By paying off some of that short-term debt, you not only save some of that very expensive interest, but you also place a very recent reminder in your memory about how much you owe or have owed.”
Another tip from Fourie is to put the extra money in a place that is difficult to access so as to avoid being tempted. This means placing it in an investment or emergency fund or asking a trusted family member to hold on to it.
“You must be able to trust your safe keeper, otherwise you are better served by sticking the money into a basic savings account that is at least out of immediate reach from your debit or credit card,” he said.
The financial planner concluded by adding that, although consumers need to be savvy with how their money is spent, they must also enjoy some of their hard-earned money during the festive season.
“Decide up front that you will spend some money on entertainment and then enjoy it, at least then you will have some great memories, feel refreshed for the year ahead and start the new year with some money in your bank account,” he said.
Fourie also said consumers must be intentional. If they plan ahead and allocate specific amounts to events such as a great night out with loved ones or a thoughtful gift for friends, they will tend to spend less on impulse.
Consumers must give to the needy as nothing creates a greater feeling of gratitude than being able to help someone who is in desperate need. Consumers must do their homework and find a charity, cause or person which touches their heart, he advised.
