The end of the year is approaching, and with it the festivities of the season, but also an important financial milestone: the aguinaldo, Costa Rica's year-end bonus, which amounts to an extra salary paid in December.
It is calculated as “one-twelfth of all ordinary and extraordinary wages earned by the worker during the twelve months from December 1 of the previous year through November 30 of the year in question, obtained by adding up those wages and dividing by twelve”.
This has been an unusual year because of the COVID-19 pandemic, so we want to advise you on how to wisely invest your aguinaldo in your home, whether by putting it toward the reservation or down payment on a house, or even by remodeling or repairing something you need.
Before making any unnecessary expense, it is a good idea to make a smart move with this money to benefit your finances.
If you were left with a debt during the year because you did not have enough cash on hand, it would be important to pay it off or make a payment toward it; that way you would not pay much interest and you would clean up your credit record.
Another option is to put that money into savings to earn interest over the medium or long term, and then use it to buy a property.
But the wisest advice is to invest in real estate, since it gains property appreciation over the long term and is an asset that does not lose value.
Your aguinaldo may not be large enough to buy a house, but it is enough to take that first step, whether with the reservation or part of the home's down payment.
At CasaMax Inmobiliaria we offer a variety of building types, from apartments to townhouse-style homes, with reservations starting at $500 (US dollars) and going up to $2,000 (US dollars). Keep in mind that the amount may vary depending on what you are looking for or what best fits your needs.
That extra money can also be put toward the down payment on the home. We work with down payments between 10% and 15% of the total price, and the amount would vary depending on the project you choose.
And if you already live in one of the many projects we have within the Greater Metropolitan Area, how about investing your aguinaldo in home repairs?
Spending this money on home repairs is never a bad investment, since maintaining your home increases its property appreciation over the years.
For example, repainting the interior walls of your home or, why not, decorating with wallpaper that matches your furniture.
What condition are your kitchen and bathroom cabinets in? It is a good idea to check any furniture that is damaged so you can repair it right away and avoid problems down the road.
Your home may be brand new and not need any repairs, but you may still need appliances and household items, which is also a good use of your aguinaldo, especially if you can take advantage of year-end promotions.
Don't get carried away by the excitement of the season, and don't take on more installment debt that could strain your finances. If you plan carefully how to invest your aguinaldo and manage your holiday spending, you will put an end to the famous “January slump” myth and secure your family's financial peace.