YOU CAN use your bonus to set you up for a good financial year!
Many think this is a pipe dream but wealth coach Lianne Lutz of Women’s Wealth asks that you try it.
By becoming aware of your options and how you spend your money, you can rewrite your financial destiny.
“Our shopping culture convinces us that we’ll be happier if we buy more. But suddenly, we are spending all our extra money, bit by bit, until it’s all gone.”
TIPS TO SAVE YOUR BONUS
If you want to create an empowered financial lifestyle, you need to ignore the pull of shiny objects which will take you further away from financial stability.
“Change your perception of not giving into buying from self-denial to nurturing your financial foundation to create financial security.”
Commit to your plan
Before you even have your bonus, it is a good idea to decide what you are going to do with it.
“Set up means that you will be less tempted to waste it,” said Kerri Lutz, also from Women’s Wealth.
Divide your bonus: 40% to your debt, 20% to savings and 20% to spending.
Use your bonus to pay off as much of your credit cards and store accounts as possible. As soon as your card is paid off, cancel the account and cut up the card. Rather put money into a savings plan which you can use for clothes or other items.
Cover your short-term expenses
What do you think will be your biggest expenses for next year? Will they be school fees, uniforms or household expenses such as electricity or plumbing?
“Take 5% to 10% of your bonus and start an emergency savings account where you store money so you can access it quickly when needed.”
Pace your spending
It’s exciting to have extra cash but you need to use it wisely and slowly.
“Many of us know January to be the longest month of the year while we wait it out for our salary. But if we slow spend over December and January, we can still enjoy ourselves without having the stress of waiting for our first new year paycheck to arrive.”
With a plan made in advance, you know how you will use your bonus.
Invest in yourself
By investing in yourself, you spend money in a way that benefits you, whether it’s a work dress or haircut, enrolling in a course or signing up for gym or yoga.
If you don’t have any debt, then set up an investment portfolio.