It’s the silly season. The temptation to spend your Christmas bonus on gifts, drinks is at an all-time high. However, given the uncertainty of everything these days, a little restraint might be a good idea.
Instead of blowing through your Christmas bonus and making merry this festive season making better financial decisions will benefit you in the long run.
Pay off your loans
South Africans are highly indebted. Data released by debt counsellor, DebtBusters , noted that South Africans are more indebted now than ever. “It is clear that the debt situation if SA consumers have further deteriorated recently,” DebtBusters noted.
The report which recorded data from the second quarter of 2021, found those taking home between R10 000 – R20 000 per month need to spend 60 per cent of their monthly income servicing their debt.
Those who earn more than R20 000 spend 62% of their monthly income fulfilling their debt obligations.
Paying off high-interest loans such as credit cards and loans will make you better off in the long run. Having a low burden of debt will allow you to save for the future.
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Prepare for the upcoming school year
Education is one of the best investments one can make in themselves and their children. The long-term benefits of having a good education can never be underestimated. While a lavish gift or a long holiday will bring short term benefits, spending money on something like books, fees and school will yield greater returns in the long run.
January, also known as Janu-worry, is notoriously difficult for most people as the reality of all the financial responsibilities you have come into sharp relief. Give yourself some breathing room by taking care of some of them now when you have extra cash in hand.
Invest in a new skill or self-improvement
Instead of spending frivolously on expensive toys, and eating out, invest in yourself. Spending money on self-improvement is a better way to spend your hard-earned bonus. If you have always wanted to take up a new skill but having had the money, this is the perfect time to make that investment in yourself. Think about using your money on life experiences that will enrich your life. Sign up for a cooking class or buy a new pair of running shoes that are better for your feet.