For many Ecuadorian public and private employees, the month of December represents an opportunity to receive additional value in their salary.

This additional salary, which is also known as thirteenth salaryit used to be called the Christmas bonus, to distinguish it from the salary

The thirteenth salary corresponds to the year one-twelfth of the salary that the worker would have received from December 1 of last year to November 30 of this year. This calculation should not include the payment of reserve funds, utilities, travel expenses, etc.

Esteban Correa, Deputy Commercial Manager of the Andalucía Savings Cooperative, advises you to use this additional cash injection as an opportunity to improve your economic situation and achieve some personal or family goals postponed in previous months.

The first step is to conduct a transparent assessment of the current financial situation. Before using this bonus or bonuses, it is necessary to identify the most urgent needs such as paying off debts, important short or medium term goals, building an emergency fund, an outstanding medical problem, etc.

Correa shares some recommendations to make this additional income work better, so that it becomes a real contribution to the financial health of the workers who will receive it.

1. Prioritize debt payment: If there are outstanding debts, it is best to set aside part of the thirteenth to cover them, either through installments or full payment of these financial obligations. How to choose which debt to pay? You can focus on those with the highest interests first.

2. Safe investments: When there is excess money, investing is a good alternative, but it is important to evaluate safe and low-risk options. There are several financial instruments on the market that allow money to be safely profitable, such as programmed savings policies or accounts or fixed deposits.

Another option is to buy company shares, whereby the investor becomes a partial owner of the company, receiving the profit it generates annually. The profit will depend on the amount invested and the result of the company. This operation is carried out through the stock exchange or brokerage houses in Ecuador.

3. Increase the savings fund: It is the healthiest way to maintain good financial stability. With this bonus received in the month of December, you can start a savings plan or increase your existing fund to meet personal or family goals, such as your dream trip, that pending master’s degree, your children’s education, house fees, car changes, etc. Also can be used as an emergency fund in case of illness, accident, theft.

4. Start the business: Investing in your own business will always be a good option as it allows you to generate additional income and your own resources, as long as it is properly managed from the start. To do this, it is important to do a little market research on business development opportunities and find out about loans intended for micro-entrepreneurs with few requirements and in an agile way, ideal for those people who want to start their business or improve their current one.

5. Shop smart: The first step is to assess whether these purchases are really necessary; You won’t have to spend a single extra cent. If you do end up using part of your 13th paycheck for holiday gifts or personal purchases, it’s important to do so wisely: take advantage of seasonal sales, compare prices, and think long-term quality, not instant gratification. Avoiding impulse purchases will ensure your money goes further and better. (F)