First installment of the 13th is paid this Tuesday; see what to do with the money

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The first installment of the 13th salary must be paid to formal workers this Tuesday (30). With the scenario of inflation and interest on the rise and the holidays approaching, a little extra money can generate many doubts about what to do with the payment.

Is it time to save or invest? Is it wise to spend at this point or should I pay off my debts first?

O CNN Brasil Business spoke with experts in financial education to help answer these questions and help Brazilian workers make better use of the 13th. Check out six tips:

1- Check your debts

Checking outstanding debts and negotiating them is the first thing to be done, according to experts interviewed by CNN Brasil Business.

Juliana Inhasz, economist and coordinator of the Economics course at Insper, says that the priority should be to pay primary bills, such as electricity, water, internet (especially for those who work in home offices) and gas.

“First, settle the basic accounts, and then those with higher interest rates, such as credit cards, overdrafts”, says the teacher.

For Ricardo Teixeira, coordinator of the Financial Management MBA at FGV, the first option should be to pay off debts with a high interest rate, to eliminate the possibility of high interest rates becoming a problem.

2- Examine unplanned expenses

Ricardo Teixeira draws attention to the economic consequences of the new coronavirus pandemic and the unforeseen expenses in the lives of Brazilians.

“Much of the population had to incur debt to pay their bills. Even those who had their budget on time, had to spend on products and services that were not previously necessary, such as alcohol gel, masks and other items”, explains the professor.

He says that these expenses must be taken into account before using the 13th’s money for new acquisitions. “We should avoid spending in a way that can generate regret later,” he says.

3- Make an emergency reservation

Another expert recommendation is to allocate the payment to an emergency reserve. If the person doesn’t have one yet, Juliana Inhasz says it’s time to create.

“If debts are paid off, a good option is to put the resources in a reserve”, he says.

“I recommend that they put the money in places with minimum liquidity close to 3-4 salaries, so that the person can support themselves for a while if they lose their job or experience instability”, he adds.

Paula Zogbi, an analyst at Rico Investimentos, also believes that the allocation of the first installment of the 13th in an emergency fund is a good option and gave some tips on where to allocate the reserves.

“Selic Treasury, zero rate DI Funds (Trend DI Simples) and daily liquidity CDBs yielding 100% of the CDI fulfill this function”, he says.

4- Invest in solid places

If the accounts are up to date and the reservation made, Paula Zogbi says that the ideal is to build a diversified portfolio according to the investor’s profile and objectives.

“At this time of a cycle of high interest rates, and especially of pressured inflation and exacerbated volatility, fixed income gains more space in our recommended portfolios”, he says.

“We prefer post-fixed bonds and inflation-linked products. For pre-fixed, we have a recommended position only in bonds maturing in 2 or 3 years, because they bring greater security than longer horizons, but carry good returns”, he adds.

As for variable income, the analyst recommends seeking solid companies, with growth that is little affected by macroeconomic movements.

“As a form of protection against inflation, the commodities sector is interesting. If we consider an improvement in the environment, discounted sectors tend to return to historical average levels. Telecom, utilities, financials, materials and energy are currently traded below the historical average in the price-to-profit metric”, he comments.

“At the other end, health, technology, industry and discretionary consumption stocks have stretched prices,” he adds.

5- Plan 2022 spending

It is also recommended to pay close attention to spending at the beginning of the year, according to experts.

“The beginning of the year is a very difficult period. We have to deal with IPTU, IPVA, class fees, school supplies, tuition fees and several other things”, comments Patrícia Palomo, investment director and independent advisor.

In addition, planning 2022 expenditures also requires counting on unforeseen events throughout the year, in the assessment of Professor Ricardo Teixeira.

“Thinking about the future is very important to ensure peace of mind not only in early 2022, but also for the rest of the year,” he says.

6- Spend responsibly

If the person has no debts, has a security fund and has already planned for spending in early 2022, Patrícia Palomo recommends “spending responsibly”.

“Nothing in installments, the ideal is to pay in cash. Otherwise, the debts will accumulate for the next year and become a snowball”, he says.

Juliana Inhasz, coordinator of the Economics course at Insper, says that this is a good time to try to negotiate discounts for cash payments, such as for Pix, which reduces charges.

“It is necessary to spend responsibly and take advantage of the fact that the market is not at a very good time to negotiate payments in a way that is beneficial for both parties”, he says.

The teacher also advises consumers not to fall into pranks of false discounts and always compare and check prices before completing a purchase.

Reference: CNN Brasil

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