How to spend your bonus this festive season

Loderick Lubisi, the provincial general manager, retail and business banking in Nedbank, said readers must exercise restraint and be financially savvy through disciplined spending.

“If you are fortunate enough to have received a bonus, or perhaps even saved for a 13th cheque, make sure you can budget and plan ahead for that extra cash to not only carry you through December, but for the rest of 2020,” said Lubisi.

Financial tips on how to use your budget

1. Craft a financial plan for your short, medium and long term goals for 2020.

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2. It is always a good idea to reduce your debt, as we experience a very slow economic outlook which puts added pressure on our monthly income going into 2020.

3. Settle your children’s school fees for the whole year. You might even get discount in some cases when you pay early.

4. Consider getting into a habit of saving. This can be achieved through having a savings plan from your bank. Alternatively, save with a group of friends. A stokvel is one way to do this. Stokvels encourages you to plan for longer term goals, while having people who are also encouraging you by doing the same thing!

5. Avoid over-indebtedness by making sure you are able to pay all your financial obligations on time. Lubisi said indicators of over-indebtedness include borrowing money to pay other loans and skipping payments on some accounts to pay others. “This is mostly caused by lack of proper planning, social pressures from family and friends, and changes of circumstances like death, divorce and retrenchment.

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