December is with us in the sign of family. I think it is one of the nicest periods of the year, in which we can spend a lot of time together around Sinterklaas, Christmas and New Year. All those festivities make December an expensive month ...
An extra in the form of a 13th month or an end-of-year bonus can then be very welcome. With many Dutch people, this extra income goes straight to the expense of the expensive December month. That is understandable, of course.
'Special rewards' such as the end-of-year bonus and the 13th month are not common. They are not regulated by law, such as the holiday allowance. In some collective labor agreements, it has been stipulated that employees receive an end-of-year bonus or 13th month. Companies can also arrange this themselves for their employees. If you receive an extra gross monthly wage, it is called a 13th month. A year-end bonus is usually a percentage of the gross annual salary.
Looking for benefit
Sometimes I have spent my money when it comes in. But if it is possible to spend those extras in a different way, that can be a great benefit. My tip would be: try to see a 13th month or year-end bonus as an extra. And go with that amount in search of something more profit or ways to reduce costs.
Are you still saving for the holiday of next year? Or is your buffer, your jar for unforeseen expenses, still too low? Then it is obvious to reserve (a part of) your year-end bonus or 13th month before that.
Pay premium in one go
What you may not have thought of immediately, is the possibility to pay the premium of your health insurance in one go. Most health insurers offer you a discount if you do not pay the premium per month but suddenly per year. That discount can be up to 3%. With a premium of € 100 per month, that saves you € 36 per year. That is more than the interest on a savings account. You could also check for other subscriptions or insurance policies if there is such an attractive discount if you pay the annual amount in one go.
If you have a revolving credit or you are red, it is also worth checking whether you can lock the year-end bonus or 13th month here. The interest on a loan is soon between 7 and 10%. And when it is red, it goes to the 14%. If you can pay off such debts or brush them off in part, you also benefit from lower monthly payments in the months that follow. This gives you even more pleasure from your 13th month Smiley Vrolijk
Cafeteria model
In recent years you increasingly hear that employers offer their staff a budget scheme or a cafeteria model. This means that as an employee you can also receive an extra amount per month, instead of everything at once.
I myself have chosen to set aside an amount each month. I have a number of jars, or saving goals. The holiday is such a saving goal. And I also continue to update our buffer for unexpected expenses. For the longer term I have an investment jar. A small amount goes there every month.
Do you also have tips for after the expensive December month? I like to hear it!