select
|

Make your bonus really count

Getting a bonus or “13th cheque” at this time of year (or a tax refund from SARS) may make you feel like a lottery winner, but if you want to stay in the pound seats, you’re going to have to resist the temptation to go on a holiday spending spree.
 
Instead, consider the following alternatives for balancing your budget, and/ or improving the value of your home:
 
• Reduce your debt. Total up the interest you paid on credit cards and store cards this past year and see how much you could save over the next 12 months by using your bonus to reduce - or even eliminate - the balances due. Then restrict use of the cards to emergencies.
 
• Try to set part of your bonus aside for home maintenance and repairs. This will help you meet home ownership costs in the next 12 months without wrecking your household budget.
 
• Reduce the capital portion of your homeloan. If you pay R10 000 off a R1m home loan this December, you will cut a whole six months off your 20-year repayment period and, at the current home loan interest rate of 9,25%, save more than R52 000 worth of interest. Reducing your loan also helps create a “cushion” against interest rate increases, and gives you room to manoeuvre if you need to borrow against your home in future, to pay university fees, for example.
 
• Increase your home’s “curb appeal”. You may not be planning to sell right away, but using additional income now to improve the exterior appearance, the security measures or the garden at today’s prices could translate into significant savings – and a quicker sale - when you do decide to put your home on the market.
 
• Start making your home improvement dreams a reality. If your budget is free of high-interest debt and you’ve set aside money for regular maintenance and emergency repairs, it may be time to think seriously about that sunroom you’ve always wanted, or the remodelled kitchen you keep promising yourself. Get some estimates of what your pet project will cost, set a time goal and start saving determinedly so you can pay cash for it.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK