It’s bonus time soon

By admin
31 October 2013

If you’re one of the lucky people who are paid a 13th cheque every year don’t spend it irresponsibly – don’t blow it on a holiday, gifts or festive season booze and food.

If you’re one of the lucky people who are paid a 13th cheque every year don’t spend it irresponsibly – don’t blow it on a holiday, gifts or festive season booze and food.

Use your bonus to make a small start to avoiding a financial crisis in the future.

“A 13th cheque or bonus is a wonderful chance to start getting rid of expensive debt and building up savings for emergencies, your children’s education or your retirement,” advises Aneesa Razack, head of strategic growth at FNB Investment Products.

If you’re still tempted to blow the money in some way to spoil yourself, don’t you think creating peace of mind that lets you sleep at night without worrying about your disastrous financial situation is a good way to do it?

Your debts

List your debts according to the interest you pay on each of them. Now pay off those carrying the highest interest, Aneesa advises.

Check your bank statements carefully

It might be a boring task but go through your bank statements for the previous year and make lists of where and how you spent money. Aneesa advises you look at the debit orders you have – perhaps you’ve forgotten you have some of them. Do you need all of them? You’re still paying for a gym membership but are you using it?

“When you’ve completed your financial stock-take you’re in the best position to draw up a budget and to stick to it!”

Save

You can’t save simply by trying to put aside the last few rands you have left at the end of the month, Aneesa says.

“An easy solution is to ‘pay yourself first’. Load a Scheduled Transfer onto your savings or investment account so that money will automatically be transferred into your savings account on the date indicted by you – a simple, smart and automated way to save.”

Elna van der Merwe

Source: Aneesa Razack, head of strategic growth at FNB Investment Products.

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