Image: iStock
You ploughed all year with the knowledge that a bonus is waiting at the end, and now it is time to enjoy it.
However, how to use your bonus responsibly is an important decision, and it’s advisable to not blow it all on spoils and things you do not really need. You would rather use it to achieve your financial goals.
Receiving a bonus is an exciting event and a time for celebration to recognise the hard work you put in throughout the year, but when you spend the money, do it responsibly, says Dhashni Naidoo, FNB consumer education programme manager.
She says it is a good idea to adopt the 80/20 principle, where you use 80% of the bonus money to achieve your financial goals, such as reducing debt or saving and investing. You can then use the remaining 20% as a reward to yourself for those nice to have items.
ALSO READ: Year-end bonus dos and don’ts
Interest earned on positive balances means you have the opportunity to earn additional income in the form of regular interest income. If you have not already started on the investment journey, it is a good time to start.
Naidoo says speak to a financial advisor or your bank, do your research, and empower yourself with information and knowledge about investing. Learn about the different types of investment vehicles and match your investment goal with an appropriate product.
“We strongly advise consumers to consult financial institutions or financial advisors on how they can better manage their money. Banks also have services and educational content on how consumers can better manage their money.”
Download our app and read this and other great stories on the move. Available for Android and iOS.