Nobody would deny that 2016 has been a tough year in all sorts of ways – one of them being financially. Inflation is running higher than we would like, and certainly seems to be higher at the till than the published figures would suggest. Most salaries haven’t really kept pace. After a brief period of strength, the rand is sliding again and imports are all more expensive writes Natasja Hart.

Added to that, members of two of the country’s largest medical aids recently heard that their contributions are going up by double digits in January; others may find that benefits may be reduced as medical inflation continues to skyrocket, and the number and value of claims go up.

All of this may make one long to cash in that lovely annual bonus and take a good holiday. However, while you may start January with a hangover, it makes sense to ensure that it’s just a temporary headache and not a financial misfire that spoils the whole year. So before you totally surrender to holiday mode, take some common-sense steps now:

Find out exactly what increases in regular payments will kick in. The most common would be the annual hike in your medical aid contributions, but others could be some insurance premiums, subscriptions or levies. Work out what the actual amounts in rands and cents.

Scope schooling/ university expenses. Especially if your children are about to start school or university, do some research to get a handle on what it is all going to cost you. Fees are just the beginning – depending on your child’s age and the institution he or she is attending, there will be costs for transport, teaching materials and extra-mural activities. The latter could range from a trip to the Apartheid Museum to a water-polo tour of Croatia.

Decide how to spend your annual bonus. If you are lucky enough to get one, don’t just automatically spend your annual bonus on a lavish holiday. In the short term, make sure you have enough to get through to the January payday given that salaries are often paid early in December.

Taking a longer term view, why not apply a portion of your bonus to a retirement annuity: you will get immediate tax benefits and strengthen your financial future. If you are finding that your bonus needs to stretch more than usual, a good idea would be to put the position clearly to the rest of the family, and perhaps agree to cut down on unnecessary expenses over the Christmas season. For example, agreeing to give fewer presents or to limit their value can actually increase everybody’s enjoyment while reducing expenses considerably.

If you take the right decisions now, you will enjoy that holiday so much more – and you’ll start the New Year on the right foot.