This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process. Opinions expressed by Contractor the contributors are theirs.
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We all know the most magical and beautiful time of the year is in December and of course we are referring to the Christmas bonus! One of the rare flashes of light between the eternal joints and the lunch plates that the life of Godin offers. But of course, because “sometimes” we are impulsive and we usually don’t plan our finances; We ended up spending the christmas bonus in a two-for-three and boom! December 26th arrives and we are back in the red.
But fear not, it’s not your fault. No one has told us how to manage your Christmas bonus, but we’ve got some tips on how to apply the art of not spending money on nonsense we don’t need.
How to calculate your Christmas bonus
Before getting to the heart of the matter, it is important that you know your rights well because the Christmas bonus is not a “good vibes” gift, it is an obligation of the employer. According to the federal labor law in its article 87, the Christmas bonus is a benefit that companies must grant to their employees and by law, they must pay it no later than December 20 . So abused, ask what’s yours. In addition, according to the same law, the bonus must be at least fifteen days’ salary and if you have worked in your company for less than a year, you must receive the proportional share of the total days that you have worked.
To calculate the exact amount to give you, there is a very simple formula: just divide your monthly salary by 30 and multiply that number by 15 and There you go ! It will be your bonus if you have been in your business for a year. With that in mind, let’s get down to business.
What YES should you do with your Christmas bonus?
One of the most common mistakes in financial mismanagement is believing that the Christmas bonus is just to give us that little luxury that we think we deserve after a hard year at work, but in reality the Christmas bonus is a opportunity to put your money in, invest in yourself, and yes also treat yourself to a little luxury.
Here’s a simple way to find out how to use your Christmas bonus:
Yes you have debts
- 70% of your Christmas bonus must be used to pay what you owe. Sorry but it’s true, you have to pay and keep the interest from eating up your money even more.
- 10% must go to the investment. Be careful, when we talk about investing we are not talking about buying fractions of bitcoin, but low risk funds, or what better way to invest in yourself? Pay for this English course or finance workshop that will help you know how to manage yourself throughout the year.
- And finally, 20% goes to gifts! Obviously we weren’t going to leave you without a snack, this money can go as gifts for you and your loved ones.
Yes you do not have debts:
- 50% of your bonus goes to your savings or emergency fund (which is three months of your salary that we must have saved for anything). Remember, saving not only helps you make bigger plans, but also gives you peace of mind.
- 20% goes to investments. Again, this little extra cash is a great opportunity to get started as an investor.
- And 30% goes to gifts. You deserve 10% more as a reward for not having debt. Be happy and buy yourself something nice.
Now that you know how to use your Christmas bonus. It’s time to tell you what NOT to do under any circumstances.
What you should NOT to do with your Christmas bonus?
This list could be very long, but let’s focus on the most common mistakes. Read them carefully, see if you have committed any, and above all, do not comment on them this year!
Spend everything on posadas: let’s See, we all love to party, but at that point you neglect yourself, and suddenly you’ve spent all your money on bottles, on horrible trading gifts and on Christmas dinners with friends. Limit your spending, budget for what you can afford, and stick to it. If you have a budget of 600 pesos for a dinner, don’t spend a single peso more. It’s time to take back control. We know you can do it.
Invest everything at high risk: Investments at this time are no longer optional, but don’t go crazy and invest in crypto or any investment that puts your financial health at risk. And if you’re in debt, it’s not here.
Buy super unnecessary things: Sometimes we go to Miniso and lose control, go out with a thousand stuffed animals that really don’t add anything to our lives. Think before you buy: are you going to use it constantly? Will it make your life easier? How long will it last?
With these tips you’re ready to go cash that check, well, nobody’s using checks anymore, but go get that little bit of money. We hope you do well, and on January 1, 2022, you will be happy that now your Christmas bounty has not gone like water and that you have managed to make it into something that helps your financial health.