The beginning of the year is usually not easy in terms of expenses. In addition to the credit card installments of Christmas gifts, seasonal expenses for the first quarter arrive.
Now is the time for you to revisit your budget and get organized. Some expenses such as children’s school, property tax, property tax, rent and other expenses, if carefully negotiated, can produce gains above traditional financial investments.
Companies still face cash constraints from the pandemic and interest rates charged by banks are high. Therefore, for many companies, a good form of financing is to offer discounts and receive future flows in advance.
You can take advantage of this business need and negotiate discounts for early payment. Thus, companies stop paying higher fees to banks and you get a discount. So a win-win situation.
See the example. Suppose you spend R$1,000 a month on your child’s school and you have R$12,000 in low-risk financial investments. An application referenced to the CDI should yield in this year 2022, approximately, 0.87% per month or 11% per year.
However, considering a 15% income tax rate, this profitability drops to 0.74% per month. Considering the net income of your application of BRL 12 thousand and monthly withdrawals to pay for school, you will have BRL 609 at the end of the next year, if the payment of school fees is at the end of each month.
If you ask for a 10% discount for cash payment, you will now pay R$10.8 thousand. However, you can apply the balance of R$ 1.2 thousand throughout the year.
With monthly profitability, he will end the year with just over R$ 1.3 thousand, that is, more than double the value of the previous situation in which he paid monthly. You will hardly get a risk-free financial investment that produces the same result.
What is the rule of thumb?
If the company proposes a discount, the rule of thumb is to accept it if the discount is greater than half of the CDI in the period.
To make the calculation very simple, multiply the monthly CDI of 0.87% by the number of months and then divide by 2.
Thus, in the previous example, the minimum discount that should be accepted for cash payment would be 5.2% (=12*0.87/2). See that 5.2% of the BRL 12 thousand, which results in BRL 624.00, is close to the amount you had left over at the end of the year in the example I presented in which you paid the school monthly.
Remember that if the company needs funds, it will pay the bank interest higher than 1.5% per month. So, negotiate an intermediate amount and both parties will win.
Take an active attitude with your financial planning, look for those responsible for large expenses in your budget such as the children’s school and the owner of the property you rent and propose the anticipation.
Also consider anticipating tax expenditures.
By negotiating the expenses for the year, you can earn more than the return on low-risk financial investments and structure your budget to save more throughout the year.
Michael Viriato he is an investment advisor and founding partner of Investor’s House
(Follow and like De Grão em Grão on social networks. Follow the posts from Instagram.)
If you have any questions or suggestions for topics that you would like to see commented on here, please feel free to send us by e-mail.
.
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
