Show me the money!

It’s that time of the year again. You’ve slaved away all year and that holiday you have been planning for months is finally on the horizon. With all this fun to be had, one tends to forget about budgeting. Being paid your Christmas bonus and your December salary early can give you the illusion of a fat bank balance.  But remember, this money needs to last until the end of January. Calculate what your January expenses will be.  (If you have kids, be sure to include the cost of new stationery, uniforms and any other school related expenses.)  Now keep this money aside. Either transfer it to a separate bank account or put the balance that you can spend during December onto your credit card.  This way you will be sure to have the cash you need to start the New Year.
We asked Ladysmith Financial Advisor Henck Lombard for a few tips:
It is that time of the year where companies are paying out bonuses to their employees. In turn, they need to make the correct choices. Getting a Christmas bonus is nice to receive over the holidays and it must be dealt with wisely.
Things to do with your bonus.
* Save
Since the money is over and above your normal earnings, put it towards a savings plan and use it later.
* Pay-off
If you incurred debt, see if your bonus would be enough to cover this amount.
* Invest
The stock market is looking good at this time. You could look at either a direct investment or making use of unit trusts as part of your portfolio.
* Tithes
If you are a church goer, you may use part or all of your bonus to give to the church you belong to.
* Home fund
If you are saving to buy or renovate your home, put some of the funds towards this planning.
* Holiday Savings
If you are planning to go away next year, why not pay for some of the expenses now.
* Invest in good books
Now could be the time you have more time to read.

Why not invest in that self help or financial book you were looking at but never had the time to read.
* Invest in Seminars
There is always some or other course or seminar on offer during the year. Now could be the time to pay the fees as well as the accommodation.
* Pay school fees up-front
It might be a good plan to pay your school fees for next year in full. Most schools will give you discount if you do so. Also look at getting all your child’s stationery at this time. It is less of a rush at this time, as most people are in the retail stores.

* Pay annual insurance or hospital plans
By paying all the premiums for insurance, as well as hospital plans, you are assured of peace of mind over the festive season, you my also qualify for discount.
* Treat yourself
You have worked hard for your money. By treating yourself, you recharge your batteries and you will have a new lease on life.
Keep spending on luxuries down to about 10% of your bonus.