Christmas bonus: expert advice to invest, get paid and multiply

Until December 20 at the latest, Colombian workers with permanent contracts and those who meet the conditions of a dependent employee are entitled to A Christmas bonus equal to 15 days of your basic salary.

(Also read: This is the formula to correctly calculate your December premium in Colombia)

Law 1788 of 2016 requires employers to pay their employees a service premium equivalent to 30 days’ salary per year. The payment is divided into two: one in June and the other in December, popularly speaking the Christmas bonus.

This extra income is a relief for many employees, but sometimes the fact that you don’t have a clear plan to use it can cause stress and an internal debate begins about whether it is best to invest, spend or save it.

(Can read: Read about the benefits of investing semi-annual premiums in home purchases)

According to Fenalco data Colombians usually use the premium to pay for financial obligations, education, travel, vacations, leisure, etc.

These are some tips that personal finance experts give to workers who are in doubt about what to do with the bonus at the end of the year, based on the fact that the first thing is to take stock of current debts, if they have them, and so on. define the best way to use the extra money you get this season.

Invest in CDT

CDTs are a good way to save.

The CDT These are products offered by banks in which a sum of money is deposited for a certain period during which the capital cannot be withdrawn, but a fixed interest is received in exchange.

Among the advantages of CDT is that the profit is guaranteed, that is, at the end of the specified period, you will receive the investment and the interest generated.

Personal finance experts assure that investing premium in CDT does not require much financial knowledge as it is a simple and low-risk option. This makes it accessible to anyone who wants to earn their money safely and reliably.

(Also read: What can you invest the bonus at the end of the year, are CDTs a good choice?)

Debt payment

If you have accumulated debts that you have not been able to repay, perhaps the best way to use the premium is payment or settlement of your current liabilities.

This will give you peace of mind in the future as you won’t have to worry about these’ll stop accumulating interest and have more cash flow each month that you could use for savings or investments.

One way to prioritize payment is to start with smaller debts, say experts at Resolve tu Deuda.

Take advantage of December and January events

Promotions are only available for some countries.

If, after analyzing your financial situation, you decide that you are balanced and can spend money on something that you have wanted for a long time, The recommendation is to wait for the discounts offered by large national and international chains at the end of December and the beginning of January.

This is one of the best ways to spend money if you use it for travel, buying technology devices, clothes, household items, among others.

In addition, clarify what you want to buy, whether it is the best and/or most optimal product of the given category on the market, whether the price is the best with regard to its quality, whether it is more profitable to buy it abroad or domestically and, of course, whether the given action is the right to buy now or if you can wait for something better.

(Except: Four tips on how to invest your half-yearly bonus)

Invest in business

Whether it’s yours or someone else’s, The extra money you get from the premium can be the basis for investing in a business that will be your livelihood and development in the long term.

Although this type of investment, unlike CDT, which provides fixed and guaranteed returns, can be high risk; If your liquidity allows the premium to add something extra to your finances, “put into production” may be your choice.

However, for that -explain to the experts- It is important to do your due diligence to know what you are going to invest in, whether your own or something from a third party; and what possibilities of profitability and stability the given enterprise has. All of the above is worth pointing out if your premium money is extra money for you and not a life saver.

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