As the year comes to a close, most people will have received or will be receiving a Christmas bonus or 13th cheque.
According to Dhashni Naidoo, consumer education programme manager at FNB, receiving a bonus is a time for celebration because it recognises the hard work you have put in throughout the year.
“Bonuses also provide us with an opportunity to achieve our financial goals. When we think about spending the money, we need to do so responsibly,” Naidoo said.
Accoridng to Cebile Zibi, Chief Marketing Officer, Momentum Money, a large cash injection into a person’s bank accounts can do a world of good for their financial future.
Zibi said that people should resist the urge to splurge their bonus and instead consider the following ways they can be savvy with their money.
Pause and reflect
Before making any rash decisions, the best thing a person can do is to pause and reflect on what they can do with their money. While you are thinking about what to do with your bonus, you can put the money into digital savings account that can generate interest and grow.
Establish clear goals
It is important that people set clear and realistic goals before they embark on any financial venture.
“Whether it's paying off debts, investing for the future, or creating an emergency fund, having well-defined objectives helps guide your financial decisions.” Zibi said.
Tap into the right advice
Speaking with a financial adviser can offer you valuable insights that are tailored to your unique situation. The expertise of an adviser can assist you in making informed decisions and optimising your wealth for long-term growth.
Neal Sinclair, a Business Development Manager at Glacier by Sanlam said that a financial adviser can be your friend, confidant and your partner to achieve your financial goals
Emergency fund
People should be prioritising building an emergency fund before making any financial commitments. An emergency fund is a safety net that ensures that you are prepared for unexpected expenses and it can help maintain your financial stability.
Debt management
Zibi said: “If you have outstanding debts, consider allocating a portion of your windfall to debt reduction.”
Reducing your high-interest debts can significantly improve your overall financial health and increase your capacity to invest for the future.
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