With good weather and extra pay you can have a high that leads you to think that you have unlimited money for all your whims (bikinis, makeup … not to mention those pants that you know you will never wear!) .
You start believing that since you have the extra you can afford this and that, and when you want to realize it you have polished it, you do not have left to face the additional expenses that come in the form of gifts, trips and various getaways and, above all.
So that this does not happen and you do not have to wait, we give you some tips so you can stretch the money of the extra pay as much as you need.
A little history…
Extra pay was invented during the first half of the twentieth century so that low-skilled workers with little economic culture could face the additional expenses that must be faced during the summer holidays and Christmas.
When it was agreed to establish two extra payments, what was done was not to add two payments to the existing ones, but to divide the annual salary between 14 payments and not between 12 as usual.
Therefore, if you have two extra payments, each month they retain a sixth of it to return it to you later as extra payment. That is, you do not charge more, but you have the most distributed salary. The number of extra payments varies, depending on the company, although the most common is two.
It seems like a good idea but, be careful, it can turn into a mirage
Receiving the extra pay before Christmas or summer is usually a shot of adrenaline but, what you may not know is that, if you do not manage it correctly, in the end it can be a headache more than a joy.
- How does it make you feel? When the extra comes around, you start the month with enthusiasm, you relax, lower your guard and indulge in a little whim. You feel rich and powerful.
- What do you do? You feel confident to burn your credit card (not a debit card) and you are not afraid of depleting your credit because you have a cash balance in the account. And you're not afraid to spend the cash, either.
- Result: a drama. All of these factors result in the "perfect storm." At approximately the 15th, what happens is that you have run out of balance in the account and also in the credit card. A cataclysm.
- And things get complicated … As you are - almost - on vacation, the feeling is financial claustrophobia. And solving it is complicated if the director of our bank is on vacation.
In a Relationship, madness is multiplied by two
If you live as a couple and you have a shared account but you don't put a little "head", when you get the extra pay, the result can be tremendous. If the average amount of the extra pay is 1,300 x 2 = € 2,600, organize the month well so as not to end up spending the € 5,200 and more!
How can you stop this "perfect storm"?
- With the usual salary and the card acts normally as you do every month, do not let yourself be carried away by financial lust. What's more, this month keep your credit card under lock and key, and only take it out on very special occasions, when spending is well thought out.
- Make a list of the extra expenses you are going to have: trips, trips to the movies or the theater, etc.
- Assign an amount to each game. Be realistic with what you can spend on each item and don't go over budget. If travel, for example, unbalances the game, use your imagination and propose to make an express getaway.
- If you do not trust yourself to do it correctly by pulling the card, you can take the money in cash and put it in envelopes for each expense: transport, meals, etc. Above all, do not forget to keep the envelopes in a safe place, we do not want any problems either.
- Try to save, in addition, a part for contingencies and a part for and other expenses that arise after the summer, when you will no longer have extra and you will have to spend again with your "peeled" salary, such as car or home insurance, etc.
And what if you don't have extra?
By not having the money withheld in two extra payments, it is you who must save each month for the holidays and Christmas. Maybe you can talk to your travel agency and pay in installments. And if not, use the envelope trick: each month you fill it with a fixed amount. Or use a savings account for these expenses. How much to save? One sixth of your salary, which is what a company would do (even a little more if you can afford it).
