Bonus and savings withdrawals: How do you plan on spending the extra cash?

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Illustration photo by Getty Images
Illustration photo by Getty Images

The most costly season of the year is almost here and now is a good time to think about how you will manage your money 

If you are one of those who will still receive a bonus this year, it is more crucial than ever that you utilise your bonus carefully. It's also critical to use your savings  prudently.

Here is how our readers are going to spend their savings/bonus.

Dimakatso Maelane

Dimakatso Maelane

I plan to pay off my debts and invest on our home projects. We just moved into our home and it needs a lot of work. My savings and bonus will definitely save me this year.

Ruth Mabuela

Ruth Mabuela

I will make sure I pay school fees for my children for 2022, invest little bit just to make sure that I am secured, buy lots of groceries that will last throughout the festive season and January. I'll enjoy the rest of the money on Christmas

Philly Sithole

Philly Sithole

I have children, so I always spend it on stationary. School supplies are usually more affordable during the festive season so I spend my savings on that.

Whether you shop in-store or online, Budget Insurance has some useful tips to make sure that you get the best bang for buck, without breaking the bank:

  • Research, research, research. Don’t get taken in by the hype and don’t fall into the trap of believing that Black Friday itself is the only time to find a good deal. Do your research and compare where necessary to make sure you really are getting the best price. You can use sites such as pricecheck.co.za to do this.
  • Set up online accounts in advance. Go to the sites of retailers you are likely to buy from and set up your online account in advance. This will include filling in your details, setting up your preferred delivery address and receiving a log-in and password. Doing this ahead of time means you will be able to buy quickly when deals go live.
  • Set up a budget. Plan what you can afford to avoid being tempted into spending more than you have. The last thing you want is to go into December with debt and start off the new year on a poor financial footing.
  • Focus on what you need first. Create a list of things that you need to get or replace soon and prioritise those. Things that you want – luxuries - need to be second in line.
  • Hold on a second. Once you’ve added all the items you were looking for to your cart, hold off on checking those items out. Wait a day or two if you can, there might be a random sale or discount around the corner.
  • Compare prices. Look for the item on other online stores that offer similar products and compare prices before committing. You may just find another bargain.
  • The 24-hour rule. Unplanned, ill-considered purchases can throw you completely off budget. Leave items in your favourites list or cart for a full 24 hours before going through with the purchase. This will give you time to rationalise the purchase and work out whether it makes sense to go ahead with it. Be prepared to step away from a deal.
  • Use those loyalty rewards. You may have some points, discounts or cash back offers due to you. Make sure to use these to your advantage.
  • Sign up for newsletters. Keeping up to date with what is happening on your favourite shopping sites allows you to receive news on the latest deals and specials.

“While the squeeze on your wallet might push you to spend money, keep in mind that for most, there is a long gap between the December and January pay days. Make sure that you have all the essentials to start off 2022 on a good foot first, that you’ve paid your bills – maybe even settled some debt - and ensure that you have a good reserve fund in place, before considering the ‘big spend’.” Steward concludes.

Credit: Information provided by iheartpr

How are you planning to spend your savings/bonus? Tell us here

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