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November 12, 2019

Bonus! Make The Most of Your Year-End Extra Paycheck

November is both high-stress and high-excitement! With two more months until the calendar flips back to January, there is a sense of pressure to make the most of what remains in the year. While it might be a taxing time of year, November also brings with it an air of end-of-year bonus excitement!

After a hard year, it might be tempting to spoil yourself with your bonus, spending it in one go on that thing you’ve had your eye on for a while. Although it’s enticing, there are better ways to make sure your bonus goes further in a way that is more beneficial to you in the long run.

Say hello to savings 

Sure, it might not sound very glamorous, but future-you will be thanking current-you ten-fold for putting any funds into savings. If you think about your end-of-year bonus, it’s literally that –  a bonus on top of your usual earnings. If you are able to put 50% of the extra paycheck into saving, you still have half of what you wouldn’t usually have for your leisure-spending!

Invest in your future finances

Similar to sticking your bonus into savings, investment means locking the funds away for the future. Unlike savings, however, investment has the thrill of being a little bit more risky with the potential for a higher reward. If you invest in the right place, it’s possible to earn passively on your investment, meaning you’ll be making a small profit on your bonus for doing nothing at all. When it comes to investment opportunities, go in with an air of caution and do thorough research before committing any of your money to a fund.

Invest in yourself

We’re not talking about spending near on R1000 on a new hairstyle (although that is an investment of sorts). When we say invest in yourself, we mean taking the time and money to upskill yourself so that you are set up for later success! Taking a short course, for example, is an excellent way of investing in your career so that years down the line, thriving will be your default.