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By definition, the word bonus means “unexpected extra”, but in South Africa, we have become a little too used to this expectation and now see it almost as an entitlement, In most cases, a desperate need.
Living on credit throughout the year, buying that divine pair of branded shoes to match the branded handbag or the upgraded set of mags, has seen service bills put aside and before you know it, you are in debt and a slave to your credit card or overdraft.
The “bonus” flows out almost almost instantly as it’s used to settle outstanding bills or splurge on unnecessary things and then, surprise, surprise... The cold hard light of the credit card bill arrives in the New Year and the cycle starts all over again.
Change it this year
DHFS’ Levin Born says: “Save a minimum of 50% of your bonus this year. Open a savings account if you don’t already have one; invest in a savings policy; don’t splurge. Run your household as you would a business – cut costs.” With your bonus safely in a savings account, it gives you access to ‘cash’ when you need it and reduces the need for credit which is by nature incrementally increased every month.
Born further warns that “the majority of South Africans live at a Zero Sum meaning that everything that comes in, goes out, and are therefore technically bankrupt”. Sound familiar? Thought so.
But, all is not doom and gloom and although you will be saving your bonus this year and spending it wisely, you can still enjoy a fun and stress-free holiday season.
5 Tips on how to spend your bonus wisely:
• Buy a new set of tyres and save the balance (saves on fuel and maintenance).
• Pay your child’s annual school fees in advance.
• Pay off at least 2 of your outstanding credit facilities and close them.
• Pay a hospital plan or insurance policy upfront for a year.
• Pay all outstanding service bills such as electricity and water.
Bonus tip: Invest in a structured savings policy/investment for your child or retirement.
5 Tips on how to have an affordable festive season:
• Invite family and friends to lunch or dinner – everyone bring something to share.
• Choose a holiday closer to home – a staycation, ask friends if you can use their holiday homes, go camping with a group of mates, swop your house with your friend’s.
• Purchase a present suitable for the whole family to enjoy – promotes togetherness and a sense of family and community. (OK, maybe throw in an extra present for each of the children – only one though! – teach our children now the importance of saving and sharing – move away from expectation and entitlement).
• Make your own gifts – this can be a family activity – hand made gifts are imbued with love and passion and mean a lot more to the receiver than store bought items.
• Look at buying locally made items or popping to your local shop – saves on fuel and transport and the planet – locavore rules!
Bonus tip: Avoid the mall – if you have to go, make it after 25th December and purchase gifts for 2012 at the sales!
Living on credit throughout the year, buying that divine pair of branded shoes to match the branded handbag or the upgraded set of mags, has seen service bills put aside and before you know it, you are in debt and a slave to your credit card or overdraft.
The “bonus” flows out almost almost instantly as it’s used to settle outstanding bills or splurge on unnecessary things and then, surprise, surprise... The cold hard light of the credit card bill arrives in the New Year and the cycle starts all over again.
Change it this year
DHFS’ Levin Born says: “Save a minimum of 50% of your bonus this year. Open a savings account if you don’t already have one; invest in a savings policy; don’t splurge. Run your household as you would a business – cut costs.” With your bonus safely in a savings account, it gives you access to ‘cash’ when you need it and reduces the need for credit which is by nature incrementally increased every month.
Born further warns that “the majority of South Africans live at a Zero Sum meaning that everything that comes in, goes out, and are therefore technically bankrupt”. Sound familiar? Thought so.
But, all is not doom and gloom and although you will be saving your bonus this year and spending it wisely, you can still enjoy a fun and stress-free holiday season.
5 Tips on how to spend your bonus wisely:
• Buy a new set of tyres and save the balance (saves on fuel and maintenance).
• Pay your child’s annual school fees in advance.
• Pay off at least 2 of your outstanding credit facilities and close them.
• Pay a hospital plan or insurance policy upfront for a year.
• Pay all outstanding service bills such as electricity and water.
Bonus tip: Invest in a structured savings policy/investment for your child or retirement.
5 Tips on how to have an affordable festive season:
• Invite family and friends to lunch or dinner – everyone bring something to share.
• Choose a holiday closer to home – a staycation, ask friends if you can use their holiday homes, go camping with a group of mates, swop your house with your friend’s.
• Purchase a present suitable for the whole family to enjoy – promotes togetherness and a sense of family and community. (OK, maybe throw in an extra present for each of the children – only one though! – teach our children now the importance of saving and sharing – move away from expectation and entitlement).
• Make your own gifts – this can be a family activity – hand made gifts are imbued with love and passion and mean a lot more to the receiver than store bought items.
• Look at buying locally made items or popping to your local shop – saves on fuel and transport and the planet – locavore rules!
Bonus tip: Avoid the mall – if you have to go, make it after 25th December and purchase gifts for 2012 at the sales!
