How to Make your Year-End Bonus Work for you
To make the entrance into the new year smoother, the recommendation is for the year end bonus to be used smarter in ways that will reap benefits for the months to come.
28/11/2022
Nearly everyone looks forward to at least
some of the elements of the end of each year.
Usually the December season equals sunny days,
more time with friends and family over the
holidays and for some a 13th cheque or end of
year bonus.
While festivities run high,
many find themselves utilising the added income
to immediately enjoy themselves. To make the
entrance into the new year smoother, the
recommendation is for the year end bonus to be
used smarter in ways that will reap benefits for
the months to come.
Start saving for a deposit on your dream home
If you are
planning on applying for a bond in the next
year, use your year-end bonus to start saving
towards a deposit. Even if it is just 10% of
your loan value, a deposit will be well worth
saving towards, says Carl Coetzee, CEO of
BetterBond. “It plays a crucial role in a bank’s
decision on whether to approve or decline a
bond. Having a deposit could also help you
secure a better interest rate, as banks look
more favourably at applicants who appear to be
less of a risk.”
Furthermore, a deposit
signals to the seller that you are a serious
buyer, and you are more likely to have your
offer to purchase accepted. Being able to
contribute to your bond from the get-go will
also help reduce your monthly bond repayments
and lower the amount of interest you will end up
paying over the bond repayment period, says
Coetzee.
Explore your own continent
While many travellers aim their Christmas
bonus towards a trip overseas, an alternative -
which will still give you that "international
feel" but cost far less! - is to explore our own
continent, Africa. Africa has so many incredible
countries to visit, with fascinating histories,
cultural treasures, intriguing foods, and
diverse people - it is well worth considering a
trip to Mauritius, Zimbabwe, Egypt, Mozambique,
or many of the other countries that the
continent has to offer.
To give you an
idea of the cost savings you could enjoy, data
from travel search engine Cheapflights.co.za
shows that an average return economy flight to
London in the UK is around R13,579, while the
same type of flight to Mauritius is around
R10,551. A round trip to Dubai could cost you
about R9,883, while the equivalent to Harare in
Zimbabwe is around R4,653. And jetting off to
Phuket in Thailand is around R12,140, while the
same to Maputo in Mozambique is around R5,772.
Treat yourself to a self care experience
As the saying goes, ‘self-care, should always be scheduled in advance' not when you desperately need it, like at the end of a busy year. Every end of year break or vacation, should include a massage, treatment or facial. “Look out for end of year deals or specials on popular discount websites and perhaps consider booking a set of three or a massage package. This will help to ensure that you’ve booked in something towards your self care for the year ahead.” comments Yusuf Jinoo, Head Concierge at Radisson Blu Hotel Waterfront
Put it towards bucket-list activities
Upnup’s
Ricki Allardice comments that “Ultimately,
holidays should be something we look forward to,
rather than another anxiety point in our already
stressful lives. Remember that sensible saving
habits can go a long way toward ensuring that’s
the case.”
“For example, for those of us
looking to plan for international or big local
family holidays a few years into the future,
perhaps combining the approach of saving with
innovation and technology could help us. Opting
to stay local these holidays and continuing to
save for an out-of-country trip in the future
meant that you did not have to compromise on
your next holiday,” says Allardice
Put it towards a GOAT
Not the animal, although
for some that might be a thing. Rather, Greatest
Of All Trips. Plan that bucket-list holiday that
you have been wanting to do for quite some time.
If you’re looking to do a big local trip,
consider popular local destinations such as Sun
City or the Kruger National Park.
Destinations such as these offer locals the
opportunity to really get to know the best that
their country has to offer. If yoú’re keen on a
Kruger stay, consider a hotel such as Kruger
Gate. With stunning rooms, a pool that overlooks
a Kruger Park watering hole, a spa and dining
options to suit the whole family, it is a
destination within itself.
Plan for tax savings in the year ahead
Starting a
tax-free savings account, donating and input
into retirement annuities are all things that
can contribute to tax deductions. Taxpayers can
then claim for these tax deductions when filing
their tax returns and potentially save money.
Using a year-end bonus to make these
contributions means that your December salary is
not impacted and you are putting something
towards good causes including helping others and
making an investment towards your retirement,
future savings goals and your general future.