The utilities They are a labor benefit that is deposited once a year to workers on the payroll of companies that generate third category income and have more than 20 workers. This year, the maximum term to make this disbursement is 30 calendar days after the expiration date of the term for the presentation of the Income Tax Affidavit (from March 25 to April 8).
Although the amount of money that private sector workers will receive will depend on the performance of the company in the annual exercise, this additional income can be very useful to get out of debt or start investing.
To continue caring for the financial health of Peruvians, Andrés Uribe, MAPFRE’s Director of Finance, offers five recommendations that can help us make good use of profits:
1. Pay or amortize outstanding debts
Try to pay your credits with the highest rate, the utilities can give you that boost you need to reduce your balance. This way you reduce the amount of debt in the receipts of each month and you will have greater liquidity. Remember to always express your interest in making an “advance payment” that will allow you to reduce interest and commissions, since it is injected directly into the capital of the debt.
2. Save thinking about the future
Designate 30% or 40% of the profits to create a fund exclusively to face emergencies and, if you already have it, access a financial product such as life insurance with savings that offer the possibility of making money grow in the long term and have support for you and your family in any eventuality.
3. Invest in your career
An additional income can be the capital you need to promote your best product: your professional resume. You can opt for a short program, a diploma or even a postgraduate degree. Investing in your career will allow you to differentiate yourself and, in the future, move up and improve your income.
4. Repair and decorate your home
The space in which you find yourself needs investment to function properly. You can use a percentage of the profits to maintain the pipes and electrical connections in your home in order to prevent water leaks or even short circuits. It is also a good option to acquire some decorative elements that make you feel comfortable in your own space. A few cushions, a lamp, or a new set of chairs can lift your mood and productivity if you work remotely.
5. Start your own business
Perhaps undertaking was always in your plans and today, with a small capital in your possession, could be the perfect time to take that big step. If you are on this path, do not forget to do it in a planned way and with a clear budget that allows you to make decisions with greater freedom.
The profits received can also be the ideal opportunity to enter the world of investments and see the money received grow quickly and easily. MAPFRE Flex Multifunds is an alternative that combines the profitability of international fixed, variable and mixed income investment funds with the protection of life insurance. With this product, the user can choose between three different profiles depending on the risk they want to take: Prudent, Moderate and Risky.
