Employees are being urged to consider more effective ways of using the holiday bonus packages to extend the benefits into the new year and beyond.

Nina Peters, business relationship and sales manager at JN Financial Services’ Catherine Hall branch, says individuals can be proactive with their bonuses by using them to boost their savings.

“When you borrow from yourself, oftentimes it is the hardest loan to repay because it was too
easy, so you owe it to yourself to pay it back now,” she said.

She also noted that the holiday bonus can be used to repay loans.

Acknowledging that some people may want to use their Christmas bonus to treat themselves, Peters is recommending that individuals utilise the 50/50 by allocating half of their bonus to their bank account.

“Keep it very real. If you have to use that Christmas bonus to buy a gift for yourself or even
help out with your regular activities, still put something down and still have something in
miscellaneous so you won’t feel like you’re cheating yourself. Remember if it’s not saved it will
be spent,” she said.

Gayon Knight, assistant vice president of sales and client services at JN Fund Managers, said persons should also consider options that will secure their future. This includes using the extra funds to kick-start or grow their investment portfolios.

“At JN Fund Managers, you can use the lump sum to invest in a mutual fund or you can start an automatic investment programme with a minimum of $5,000 monthly that is paid by way of a standing order or salary deduction,” she said.

She explained that mutual funds are less risky than investing directly in stocks and bonds and provide the opportunity for people to build their portfolios based on their own risk preferences, timelines, and goals.

“Investing in stocks is a good way to grow your wealth over the long term, but you must be willing to handle the risks. Buying and selling stocks is quite easy – all you need to do is choose a stockbroker, open an account, and seek guidance from a financial advisor. You also have the option of buying and selling stocks online. When you invest and own stocks in a company, you will be entitled to a share of that company’s profits, which they pay out at different intervals as dividends,” she explained.

She added that individuals can also consider using their bonus to purchase gift certificates for investment products that will last.

“A holiday bonus can be your employer’s way of showing that you are valued or a reward for your performance over the year. If you’re fortunate to get one, be sure to use it in a meaningful way that puts you on a path to improve your financial position,” she added.