Africa-Press – Namibia. WITH THE HEAVY impact of Covid-19, increasing fuel and electricity prices, higher repo rates, as well as the ever-rising cost of living, many African consumers are looking forward to some respite with the promise of end-of-year bonuses and 13th cheques.
While it’s tempting to spend the cash injection on a holiday, a luxury item you’ve always wanted, or expensive gifts for yourself and your family, it’s wise to take a step back and think about how you can make every cent work smartly.
Instead of blowing your bonus on instant gratification, luxuries and other ‘wants’, rather focus on a plan that will see you buying what you really need, saving, investing, or paying off debts.
The small sacrifices you make, and the restraint you exercise now, will serve you well in the long run, and set you up for a money-savvy, successful 2022, says Susan Steward from Budget Insurance. Take these tips to heart: • Don’t spend in advance.
• Straight to the ‘hands-off’ box: As soon as you get your bonus, move it from your current or cheque account to a different account, so that it’s out of sight, and so you are not tempted to spend it all at once.
• Squash that debt: If you have any outstanding debt with high interest rates, such as credit cards and personal loans, pay them off.
• Focus on your needs.
• SOS fund: Use your bonus to set money aside, or invest it in an easy-to-access fund that offers high interest.
• Spend a little, get a lot of value.
• Build that deposit: If you consider buying property or a vehicle, you could put your bonus in an interest-bearing account towards a deposit.
• Pay it up front: Consider using your bonus towards paying school fees and other expenses up front for the following year. You may even get a discount.
• Invest. Goal achieved? Treat yourself! If you’re financially healthy and you’ve hit a savings goal, then buy yourself or your family something great. Rewarding yourself will motivate you to stick to your next goal.
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