Ways To Maximise Your Bonus

For those of us who have worked hard and are fortunate enough to have been rewarded with a bonus, here are a few pointers on how best to utilise it!

• SETTLE SHORT TERM DEBT - Settling your short term debt should be a priority (e.g. Credit Cards / Short term loans) and one should use any opportunity to reduce or settle this debt as this is your most expensive debt.

• BUILD / ADD TO YOUR EMERGENCY FUND - Building your emergency fund will provide you with a buffer when cash flow is under pressure.

• EDUCATION - Education forms a major part of monthly expenses. Upfront payment of school fees will reduce your monthly expenses and will often include a discount.

• BUMP UP ON LONG TERM SAVINGS - Every little bit helps. Consider adding a portion of your bonus to your long-term investments if you don't need the extra cash.

• PHILANTHROPY - Help someone in need.

• ENTERTAINMENT - This is a luxury. Use only part of your bonus towards holiday and entertainment during the festive season.