This month, more than 4 million Peruvians, who work in the private sector, will receive the Compensation for Time of Service (CTS)that according to Law, workers will be able to use 100% of this money during this year.
Gisell Capristan Luna, economist and professor at the Faculty of Administration and Business of the Cibertec School of Higher Education, indicates that this extra money represents economic relief for people at this time; However, it is necessary to implement strategic management of this resource.
According to the Peruvian Institute of Economics, 9 out of 10 people who have CTS only have enough to cover one month of the basic basket, so it is necessary for people to be more aware when managing this money and have financial education. .
“The CTS is a valuable tool for building a solid financial future. Investing appropriately can open doors to new opportunities and improve quality of life. To achieve this, it is important to have good money management from the initial moment of deposit,” explains Luna.
The economist reveals that people, having “great liquidity,” do not know how to manage money and do not establish long-term goals, so they begin to meet more immediate needs such as buying a car or going on a trip. Therefore, it explains five key points to responsibly manage the CTS.
- Set clear financial goals: define what you want to achieve with your CTS: an emergency fund, investment in education, or starting a business? Having clear goals will allow you to channel your efforts and resources effectively.
- Create a realistic budget: Analyze your income and expenses: A detailed budget will help you identify areas where you can reduce costs and allocate more to your savings and investments. Remember that 70% of workers without a clear financial plan tend to waste their resources.
- Prioritize the payment of debts: if you are burdened with debt, allocate up to 50% of your CTS to eliminate them. Reducing your debt will not only free up cash flow, but it will also decrease financial stress. Every sol you save on interest is a step towards your financial freedom.
- Invest wisely: consider allocating between 20% to 30% of your CTS in investment options that offer competitive returns, such as mutual funds or fixed-term deposits, with rates that can reach up to 20% per year. Make your money work for you.
- Consult an expert: Don’t underestimate the value of financial advice. A good advisor can guide you to maximize the performance of your CTS and help you make informed decisions that improve your financial situation by 40% in the medium term.
This November, by receiving the CTS, workers have the opportunity to not only reflect on their financial decisions, but to take action toward a more secure future.
A conscious and strategic approach can be the first step towards economic stability and prosperity “Planning is essential. Every decision you make regarding your CTS can significantly influence your future financial well-being,” concludes the expert.
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