Getting a bonus this December ?

For those of us lucky enough to receive an annual bonus or 13th check, there often seems to be a desire to spend it all on an unnecessary luxury. What we should remember is that the luxury of the bonus itself presents an opportune time to tidy up your financial situation.

If you are already a homeowner, a good option is to use your bonus - or at least part of it - to reduce the capital portion of your home loan. This could benefit you all year with a lower monthly installment. Also, you can increase the value of your home by using some of your bonus to improve the exterior appearance, the security measures or the garden. At today’s prices this could translate into significant savings – and a quicker sale – when it is time to sell.

You can also advance your home ownership plan. If you are working towards buying your own home, boost your deposit savings with at least part of your bonus. The bigger deposit you can pay, the more likely you are to be approved for a home loan - and the smaller your monthly repayments will be.