Toni-Ann Neita, Staff Reporter
YOU ponder on what to buy with that Christmas bonus - a special treat for yourself, something for the kids, maybe a few more Christmas presents for relatives and friends.
Well just before you go running off to the nearest shopping mall, think again. Do not allow those three shopping temptresses, impatience, impatience, impatience sucker you into rash decisions.
This is very good advice because after the delightful joys of Christmas have waned you can be faced with the most dramatic reminder of the holiday season - Christmas debt.
So then, what can you do with your Christmas bonus? First, there is nothing wrong if you want to use a percentage of the bonus on something fun and frivolous. In fact some people actually recommend that, for the sake of your general well-being, factoring in the feelgood quotient, as our American friends would say.
"A bonus can mean the giddy intoxication of frivolous spending and why not. There's nothing like that feel-good factor," said one advocate of this idea. But why blow off your entire bonus ? The important thing is to decide on the percentage that you are going to devote to frivolity in advance and stick to it. The amount you devote will all depend on whether you are about to be blacklisted for bad debt or not!
After you have indulged yourself, put the 'responsible you' in charge of the remaining windfall. (You'll recognise him or her by its angel wings and a tendency to steer you in the right direction).
Buy yourself some peace of mind
The responsible you is likely to suggest that you settle your debts. It is always a good idea to use your bonus to pay off, or at least lower, outstanding debts such as overdraft, credit cards and loans. In fact, there is no better Christmas present that you can give yourself or your family than going into 2002 released from the spending of Christmases past.
Settle your most expensive debt first. This could include the accumulated amount on your credit card, car loan repayments, bank overdraft, mortgage, home loans, hire purchase debts, student loans, and the list continues.
Invest the rest
If you are blessedly debt-free or you have money left over after paying off debts, look for ways to make that money grow with an eye toward more abundant future holidays.
There are various investment options to consider so that you can start the new year on a firmer financial footing. If you are not investment savvy, consider approaching investment advisers or stockbrokers to discuss the investment options that are available to you.
Alternatively, invest in your old age by putting aside some retirement money.
It may not be the most exciting thing that one could do with their bonus but it will help secure one's future.
Charity
Hopefully having some extra cash will make you feel a little philanthropic. This holiday season, spread the love by donating some of your bonus to your favourite charity.
May we suggest the Salvation Army as their Orange Street-based headquarters suffered an untimely blow when they were robbed on Monday night. Some 'Grinch'-like person or persons made off with more than a thousand gift items that were to be delivered to needy children and adult shut-ins this Christmas.
Saving for a rainy day
When you can least afford it, someone may break into your car, leaving you to foot the bill for the smashed window. Or your washing machine could break down, along with a host of other possibilities.
Cash should be kept aside, from your bonus, for such unexpected expenditures. The best home for this 'rainy day' money is a high interest deposit account.
If you have school-going children, remember that a "rainy day" may come as early as January when you have school books to fund. And remember you will probably also need some money to tide you through the 'Christmas spending hangover' that often comes in January.
