Ways to stretch your bonus this year
5 November 2018 FINANCE
By Nomali Cele
When times are hard, they can be hard on all fronts. Or, as the saying says, when it rains, it pours. And has it been pouring this year for the South African consumer! In February, President Ramaphosa announced a one per cent VAT hike, which went into effect in April. From a household goods front, consumers have been having a hard time. That is not even taking into account the implication of the ever-rising fuel prices. The financial pinch has been growing into something of a financial clamp all through 2018.
Most companies are likely to cite these bad economic times for a lack of bonuses or issuing smaller amounts. As we said when it rains it pours. If you’re in the category of people who will be receiving any sort of bonus this year, stretch your bonus this year.
How to stretch your bonus: Pay Ahead
Even though you might have been planning for your bonus for months, anticipating the relief it will bring to your pockets, why not treat it as an amount that was never meant to exist? Instead of pulling it into your regular budget, stretch your bonus by paying for something in advance. Be it your car instalment, rent or
How to stretch your bonus: Fix it
Continuing with the trend of treating your bonus as “money that wasn’t supposed to exist, why not put it in a fixed deposit? Different banks offer different interest rates, which means a varied return. For this option, your current personal bank may not offer the most competitive interest rate.
The notice requirement on fix deposits will make you think twice before reaching into the special pocket. Some banks charge a penalty when you want to access your money earlier.
How to stretch your bonus: Plug an important hole
When you stretch your bonus, you solve a problem for yourself or create a better return for yourself later. Instead of wondering, come the new year, what you did with your bonus, use your bonus to plug a big financial hole in your life. Choose to go big with how you spend it and make a dent in your finances and life.
And if your Stokvel paid out
Most stokvels that pay out around the festive season are not money-based. Grocery stokvels, renovation stokvels, school uniform stokvels are all likely to start paying out mid-November. If your food stokvel pays out in non-perishable goods in quantities that make it so you don’t have to buy a spice or single grain until March, you should consider putting thought into what you do with part of your grocery money for those three-four months.
Keen to spend your bonus? Here are other smart ways to spend your bonus.
How do you plan to stretch your bonus this festive season? Tweet us your tips using #KayaOnline