Don’t get wrapped up in year-end festivities and splurge your bonus all at once! Here’s how to use your bonus effectively:
- Debt that is in arrears should be your priority. It’s not going to go away, so pay as much of it as you can. Also, prioritise high-interest debt like personal loans and credit cards.
- See if you can pay up any loans and or debt that may free up extra cash going into the new year.
- Keep some money aside to give your emergency fund a boost. If there’s one thing that 2020 has taught us it’s that an emergency fund is crucial!
- Invest some of the money in tax-free savings or unit trusts.
- Put money aside for known costs in the new year, such as education fees and related costs, etc