How to use your bonus this Christmas

If you are one of those fortunate enough to receive a bonus this year then perhaps you might be wondering what to do with this bonus.  The aim of this article is to provide some ideas for you to consider.

At this time when Jamaica is still struggling to recover from the effects of the worldwide recession our first priority should be to reduce our indebtedness.  If one is carrying a large balance on a credit card then here is an opportunity to pay it down.  Credit cards have the highest rate of interest and are often times the hardest loan to repay.  This is because the interest often builds up faster than one is able to pay down the debt.  One can also consider making additional payments on outstanding loans including mortgage loans.  Paying off your mortgage loan early can provide a great deal of security and free one from the worry of losing the house where you live.

It is important to reduce one’s indebtedness in order to make it easier to begin a savings programme.  This is the second most important use of one’s bonus and one should consider saving a significant portion of the bonus.  Saving money is important for two purposes, saving towards retirement and saving for emergencies.  In an economy when one can lose their job suddenly it is important to have resources to fall back on.  A good guideline is to try to have savings sufficient to cover six months of expenses – food, rent, utilities, etc.  There are many savings options and this season take the time to find one that is suitable for you.

With the extra money that you have this season why not consider using some of it to help someone less fortunate.  There are many organizations committed to helping the needy and there is a great deal of pleasure and satisfaction that can be derived from giving.  This season exists because God gave his son in order to redeem the world.  He gives us all that we need to survive and sets us an example to be followed.  Let us learn to give and you will find that the one that gives often receives back more than what was given although not necessarily in terms of money.

Lastly, don’t forget to give yourself and your family a little treat with some of that extra cash.  Saving and paying off debts are good but we all need to spoil ourselves once in a while.  It is not wrong to get something nice for yourself but remember to keep it within a reasonable limit.