facebook-icon instagram-icon twitter-icon pinterest-icon google-plus-icon youtube-icon

Eight Smart Ways To Spend Your Year End Bonus

year end bonus

It’s that time of the year again – when you anxiously wait for your year end bonus or 13th cheque! And, while your boss might pleasantly surprise you by how generous he/she’ll be, prepare yourself to be shocked when the taxman takes a lovely chunk of your bonus.

You’re probably now wondering how. Well, not only can he take up to 45% of your bonus but if you get it at the same time as your December salary, this could push you into a higher tax bracket. Furthermore, when you go shopping with the rest, you’ll still hand over a further 14% in VAT. Not fair right?

 

So, while you may feel tempted to splurge this Christmas, there are better things you can do with your bonus. And, I have a few ideas.

1. Top up your pension fund

If your total contributions fall within the 7.5% tax limit of your pensionable income, you’ll be able to deduct it from tax next year. This way you can get a little extra cash when you need it most.

2. Buy a new set of tyres

The more resistance your vehicle has to get moving, the more fuel it will burn. So, buying new tyres will save you on fuel and the maintenance of your car.

3. Save a minimum of 50%

You have to have back up for rainy days. When the economy struggles, you should run your household the way you do your business – by cutting costs.  Saving at least 50% of your bonus will give you access to cash when you need it and reduce your need for credit.

4. Pay your child’s annual fees in advance

Most schools give a discount. You could only end up paying for 10 months and not 12.

 

5. Kick-start your investments

Whether you want to save for your children’s education, retire early or put aside some funds for that five star cruise, this is the time to jump-start that investment portfolio you’ve been dreaming of.

6. Make an upfront payment on your hospital plan or insurance policy

This will increase your monthly net income and you’ll be able to claim a percentage back on your tax return.

7. Prioritise your debt

Accumulated debt can seriously erode your dreams of financial freedom. So, be responsible and clear your debts this year. Forget about the festive hype, there’s always next year. You don’t want to start a new year by paying off the “sins” of the previous one. If your bonus doesn’t cover the full amount, start with the debt you’re charged the highest interest rate on. Credit cards, for example, charge you around 18% per year – so consider starting there.

8. Please spend 10% on anything

You worked hard this year. You deserve the bonus and a bit of fun! But, only 10%! Just remember this, if you want to make a real difference to your financial situation, you have to make the right moves with your money. Don’t spend it all and have nothing to look back on next year…

Spend your money wisely and you’ll start off 2018 on a better footing.

Share

Tags: , ,

Leave a comment

Follow Us On Instagram

  • Happpppy Birthday to you ❤️ my Kerri-lee Fairy Daisy Jasmine Taylor... You are my favourite sister in the whole world! ;) Thank you for everything you are and everything you do for me! I love you! #bffe #sisters #favouritesister #iloveyou
  • Oh how wonderful it is to have a friend like you ❤️♾❤️
  • 🎉 GIVEAWAY: WIN 1 of 3 MASSIVE WORLDWIDE LUXURY RETREATS🏝
.
🏝Together with @berrycocobymina &  @nefelinineretreats, We are giving away 3 days of Luxury Wellness and Fitness Retreats to you in Three different Countries! (🇿🇦🇬🇷🇨🇾)
————————-————————-
🏝RETREATS that you can WIN in this GIVEAWAY:
————————-————————-
🇿🇦: SOUTH AFRICA:
————————-————————-
“Rejuvenate and Relax Luxury one day Retreat in the Cape Winelands curated by @liferetreat_ ” consisting of:
.
(1) Yoga/ movement class to start the day off @liferetreatstudio ;
.
(2) Full Body Massage @wellnessinthewinelands ;
.
(3) Lunch at the world renowned @millhousekitchen ;
.
(3) A visit to the @artcuratorsa ;
.
(4) Wine and chocolate Pairing @lourensford Cellar;
.
(5) A small gift from the @lifestyleshopsa ;
————————-————————-
🇬🇷:GREECE:
————————-————————-
“One Day Luxury Fitness Retreat with @nefelinineretreats ”
.
-> in The Ancient Marathon area of Athens consisting of:
.
(1) a guided 2.5 hour nature hike with scents, sounds and gorgeous views;
.
(2) open air Ancient Greek Marble Museum tour;
.
(2) a lavish Mediterranean lunch inspired by the healthy Blue Zones of Greece.
————————-————————-
🇨🇾: CYPRUS:
————————-————————-
“Luxury Island Retreat for you and one friend with @berrycocobymina:
.
(1) a Hike in the Mountains of Troodos, or to the Blue Bays of Cavo Greco Park;
.
(2) followed by a seaside Mediterranean inspired Picnic;
.
(3) Consultation with Mina of @berrycocobymina who will also give you a free detox guide and health consultation and a foodie gift!
.
—————-—————-—
🏝HOW TO ENTER:
.
1. Follow @nefelinineretreats @berrycocobymina and  @liferetreat_ on Instagram;
.
2. Comment below the name of 5 friends and the country/countries you want to win the retreat in!
.
3. You can enter as many times as you want as long as you don’t tag the same people;
.
4. BONUS ENTRY: double your entries by sharing this picture on your story and be entered into the giveaway for a Yoga Mat from @liferetreat_ !
.
🎉🏝Winners will be announced on 17 MAY 2019!!
.
.
.
#luxuryretreat #fitness #fitnessretreats #giveaway #health #heAlthblog #yoga #hiking #hike #capetown #greece #cyprus #healthygirl #fitnessgirl #fitgi

Life Retreat

You have successfully subscribed to our mail list.

Too many subscribe attempts for this email address

Keep Up To Date With Our News & Views

Sign up to receive our newsletter for free!

* indicates required