One of the best things about year-end is that most of us get our pay cheques early and for those lucky individuals who receive a 13th cheque, the December salary comes with a little sweetener.

As much as the early cheque usually comes as a relief, we need to remember that this money has to last 40 days! So it’s essential to put a plan in place to stretch our cash as far as possible.

Pay all your bills now before you spend the money. This includes any annual bills that come due in January, such as school fees, uniforms and stationery. As most of us go on holiday at this time of year, being able to lie on the beach without having to worry about remembering to pay bills is an added bonus.

If you received a 13th cheque or even a tax rebate, there are a couple of ways to use the extra cash to improve your finances. You don’t have to do them all, but commit to selecting at least one:

• Pay off your smallest debt and then close the credit facility. There’s no point in using this windfall to improve your finances only to be back in the same situation the following year.
• Start/boost your emergency fund. You just need to start with R10 000 put safely away for unexpected life events so you won’t have to worry about keeping credit lines open. If you already have a basic emergency fund and your debts are paid off, focus on growing that emergency fund to cover three months of expenses.
• Save tax and boost your retirement provision. You can invest up to 27,5% of your bonus tax-free into your company retirement fund or personal retirement annuity.

When your bills are paid, some debt settled and savings put aside, you can spend the remainder of your pay-cheque celebrating the festive season guilt-free.

What will happen to your Own your life Rewards?

If you are a member of the Own your life Rewards programme you should by now have received notification that we are winding down the programme which will be discontinued next year on 31 March 2017.

The festive season is listed on the Holmes and Rahe Stress Scale among the 43 most stressful life events. It’s time to change our children’s expectations and take the pressure off us as parents.

Economic uncertainty and the political tumult have driven demand for offshore investment products to an all-time high. Concerns around currency volatility and the local market limitations, in terms of size and exposure to wider global industry, have also contributed to a reluctance to take on risk.

Finance Minister Pravin Gordhan has told South Africans that government needs to raise an additional R28 billion in taxes next year. We look at where those taxes are likely to come from and how to plan for them.

While your children may want the latest gadget or toys on the market, we suggest a number of invaluable gifts that they’ll appreciate forever.

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