Increase and bonus allocator
What should I do with a raise or bonus?
Decide in advance how much of your next raise or bonus goes to savings, before it reaches your account.
Your next raise
R
R
Expected raise each year6%
The increase in your take-home pay.
Share of each raise you commit to savings50%
Decided now, before the money arrives, so it is never missed.
A bonus or 13th cheque
R
Into savings50%
Towards debt25%
Where your next five raises take you
Saved each month after 5 raises
R 5 728
now R 1 500
Still spendable each month
R 27 728
R 23 500 today
| Take-home | Saved | Share saved | |
|---|---|---|---|
| Now | R 25 000 | R 1 500 | 6.0% |
| Raise 1 | R 26 500 | R 2 250 | 8.5% |
| Raise 2 | R 28 090 | R 3 045 | 10.8% |
| Raise 3 | R 29 775 | R 3 888 | 13.1% |
| Raise 4 | R 31 562 | R 4 781 | 15.1% |
| Raise 5 | R 33 456 | R 5 728 | 17.1% |
Saving a share of every raise means you never feel a cut in the pay you already live on. Your saving rate climbs from 6.0% to 17.1% of take-home. The idea comes from the Save More Tomorrow programme by Richard Thaler and Shlomo Benartzi.
Your bonus, split
Savings
R 7 500
Debt
R 3 750
Enjoy (25%)
R 3 750
Many people find a simple rule works: decide the split before the bonus lands, keep part for something you enjoy and put the rest to work. Money-Sense does not recommend where to save or invest it.
Financial education, not financial advice. Money-Sense does not recommend any product and nothing here is personalised advice. Results depend on the figures you enter and on assumptions that can change. Speak to an authorised financial services provider before you make a financial decision.