In times where extra money arrives, such as severance payments or employees’ legal premium, people make mistakes, without learning from them.
The time has come to receive the bonus and almost always the workers make several mistakes with it: they spend it before, they use it for the children’s school or even, when they withdraw it, they do not take security measures and are victims of the thieves.
That does not have to continue like this. Anyone can make decisions on time and correct those things to stop losing money . In fact, an article by WeForum.org, written by Aurelio Jiménez from the El Salmon Blog portal, states that we get used to the fact that money goes in and out of people’s pockets, without being measured and until the day of death. It seems simple to say but the most common mistake that individuals make is to believe that they can spend more money than they receive.
Therefore, bad individual decisions can lead to the bankruptcy of the entire economy of a country: this happened in Albania, with the fall of the pyramids or Ponzi schemes, with the abuse of toxic mortgages packaged in complex stock products that led to the bankruptcy of major US financial firms, or the exaggerated public welfare system that compromised pensions in Greece and led to the default of their sovereign debt.
Faced with the evident lack of financial education, FP took as a reference 10 recommendations for money management, provided by the financial cooperative Confiar to summarize the 10 common errors that occur in Colombians regarding their finances, especially if they receive additional money as the service premium or the severance interests. Generally, they think that this money is to enjoy it, to spend it on a trip and it does not occur to them to look for investment products.
However, not all possibilities are closed and there is still time to reorganize your finances. Just try to avoid behaviors such as those that Confirn exposes below, and you can surely continue to materialize your medium and long-term objectives.
#1. They do not know how to calculate the money they will receive: for example, the premium arrives and they do not have clarity of what they will receive, that is why it becomes ‘pocket’ money or to be liked. If for any reason he becomes unemployed, that employee does not know how much will come of liquidation. There are aids in FinanzasPersonales.co of applications to know the settlement or this explanatory video to calculate the labor settlement.
#2. They let themselves be carried away by the emotion of money: they forget that money is scarce, limited and that it costs a lot to receive it. Therefore, they are given to spend more and end up more indebted than before.
#3. They do not review the financial goals of the year: they are commitments that are not written down by any side or are simply made in the mind like saying ‘this year I will save $ 1 million’, but without proposing realistic plans, but on the contrary, taking more cards and spending more.
#4. They ‘forget’ their obligations: instead of canceling their debts with the banks, of services, of bills, they ‘forget’ them and go out to eat, buy something they liked or go on a trip. The recommendation is to use the automatic debit or discount tools to the payroll savings account to stay up to date, avoid interest and enjoy better.
#5. They do not set goals for saving: before saving, be clear about the date to comply with these savings and, more importantly, what savings are for. The same happens when the premium arrives, you have to know what you want to invest in, so you will avoid spending it little by little on unnecessary things.
# 6 They get carried away by the pressure: take the time to request information and when promotions appear like “for a limited time”, “Just for the early morning”, “the first 100 people”, they go shopping without thinking.
# 7 They do not measure in the vacations: if they travel and the company advances the salary for vacations, a budget must be made that contemplates the trip and the expenses that come later.
# 8 They go out to hunt promotions: u offers for changes in the collection, without remembering that there will always be discounts. The typical spenders go out to find products in the promotion, without being told what items are on offer, the number of available units and their duration. The solution is to verify that the information contains the requirements and conditions to access the promotion.
# 9. They do not investigate what investment or saving options there are: if you have not heard of collective investment funds or variable income products, the cooperative has savings products with special rates for your programmed savings and CDT.
# 10. They spend the money in a single month: from now you can foresee the expenses of special dates, to spend a rest of the year with tranquility.
About 8 million Colombians would receive the service premium. This population is part of the formal labor market of the country, that is, 35.5% of the more than 22 million employed in Colombia, according to DANE figures. Recall that the worker is entitled to the premium that is linked by a contract to an employer and that there is a subordination; including those of domestic service. This is calculated proportionally to the time worked.