10 Wise things you can do with your bonus

Woman gets bonus. (Photo: Getty Images)
Woman gets bonus. (Photo: Getty Images)

It's easy to be tempted into spoiling yourself after a hard, long year.

Why work if you can't spend your hard-earned money, right? But is it the best thing to have a short-term splurge when a few wise choices could help your bonus work harder in the long run? We asked a few experts for advice. We're just human and tend to want to reward ourselves immediately, says Anil Jugmohan, an investment analyst with Nedgroup Investments. How many of us would be prepared to skip our bonus this year to get a bigger one next year?

'It’s only human to say, ‘I’ve earned this’, then spend like mad'

But people could make the mistake of putting their bonus towards buying something they can’t really afford. “The novelty and excitement of having a new car will soon wear off but you’ll have to keep up your monthly payments for five years.”

Yes, you can spend your bonus or part of it to reward yourself, Anilsays, “but you can do so cleverly. Regard it as a windfall that you can use with an eye to the future.”

Nico Swart, a lecturer in personal financial management at Unisa and author of books on financial skills, says, “Ask yourself where the bonus could best serve your and your family’s goals and spend it on that.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24