Q – My year-end bonus is coming. How much should I save, and where should I put it?

A – Decide before it lands. Once a bonus is in your account, it has a way of disappearing into December. Pay yourself first: move your savings portion out on the day it arrives, then enjoy the rest without guilt.

Remember that bonuses are taxed, so plan around the amount that actually reaches your account, not the figure on paper.

Where it should go depends on your situation, but a sensible order is:

Expensive debt first. Every rand off a credit card or store account saves you interest.

Then your emergency fund. Aim for a few months of expenses, so the next geyser or car repair doesn’t go on credit.

Then make it grow. A tax-free savings account lets you invest up to R46 000 a year, with a lifetime limit of R500 000, and all the growth is tax-free. A top-up to a retirement annuity may also reduce your tax.

And plan for January now. School fees, uniforms and a long month are waiting.

At Multilink, we look at your bonus as part of your whole picture: your medical aid, insurance, life cover and investments together – your 360 degree financial wellness. If you’d like help deciding where your bonus can work hardest, let’s talk before payday.

Before you lock in your 2027 medical aid choice, let us look at the whole picture with you.

Pedri Reyneke

CEO – Multilink Financial Services

Got a question, ask me!

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Multilink Financial Services is an authorised financial services provider, FSP 2972.

Contact us: Multilink telephone: 017 638 1048 OR info@multilinkfs.co.za OR https://www.facebook.com/multilinkfinancial