You decide how to manage your money

(This post talks about a specific situation that may apply primarily in Spain, due to its way of working. The LinkedIn post quotes was originally in Spanish, and I have translated it for your benefit)

Today, I read this post in LinkedIn, by Adrià Marquès Casasayas. I don't know him, I'm not connected to him, but it really struck a chord with me:

€1,536.95 or €1,377.86. Same paycheck. Same company. Same position.

The difference: one is based on prorated payments—12 equal payments per year. The other consists of 14 payments: 12 regular monthly payments and 2 extra payments in June and December.

The annual pay is the same. But it feels very different to the person receiving the pay.

A couple of weeks ago, a new employee came in convinced that he was being paid less than he was entitled to. We explained it to him. He didn’t understand. We explained it again. It still didn’t make sense to him. In the end, he asked for his pay stub and left after two days.

The problem isn't his. It's that nobody understands their pay stub.

Not the prorated pay. Not the difference between gross and net. Not how much the company pays in Social Security for every euro he earns. Not how much he pays.

They only understand the net amount.

And as long as that's the case, any conversation about salary gets off on the wrong foot.

I like managing my own money. I prefer 12 equal paychecks and saving up for the months when expenses are high. But everyone has their own way of doing things; some people prefer to get a double paycheck in June and December and go without one the rest of the year.

What’s unacceptable is for people not to understand what they’re signing every month.

Link to the LinkedIn post

My goal with HomeFinance is precisely for you to be like Adrià: someone who enjoys managing their own money.

Don’t let anyone tell you what to do with it, or when it’s best to receive it.

The 14-paycheck arrangement is a “scam,” unless you don’t know how to manage your money.

And to do that, the first step is to understand your payslip. From there, organize your finances so you can decide how to use your money. Save every month to give yourself that “bonus”; invest it, and you’ll see how you can earn even more; but don’t expect others to make those decisions for you.

And if you are among those who receives your salary in 14 installments, for whatever reason, and you want to take control of your own money, email alberto@homefinance.coach to take the first step.