It seems that green shoots begin to be seen after so many years of economic recession, and finally the unemployment rates not only remain stable, but have been falling in recent months.

Younger workers, known as the millennial generation, have gained confidence and increasingly assume the risks of changing jobs seeking a quality leap in their working conditions, almost always for salary issues.

According to the Good finance Study of the Spanish payroll expenses, the average payroll is € 1,842, with a difference of € 356 between men and women. Basque Country the community where you pay the best (€ 2,173 / month) versus the Canary Islands with the lowest average payroll (€ 1,631 / month).

Here the question becomes interesting

although the economy is better, wages are not; As a result, looking for work in another company where negotiating your salary conditions from scratch has become an effective method of making more money.

There are professionals who have made changing jobs a habit that is repeated every few months. For these workers the explanation is reduced to, or staying in the same company for years and expecting an increase of 1 percent per year or otherwise quitting everything and getting another job an increase of 10 percent of their annual gross income.

The most consolidated companies tend to be more alarmed at this type of practice, however, the younger ones not only accept it but also encourage it by offering good sums of money if the candidate is worth it.

You can find “yours”

The millennial generation are often described as the great sufferers of the paradox of choice. We have so many options to choose from that, rather than making things easier, they complicate them even more and decide what to do with our professional career becomes a nightmare.

Even during a recession economy, many of us have had more options available than an idea of ​​what to do with them: Do we look for a regular job or do we start a business? Is it better to stay or travel the world and gain professional experience? Do we continue to expand knowledge or focus on what we already know?

Job changes or “job hopping” allow us to experiment in different departments, functions and fields, which can help us get a job adapted to our needs; After all, if you’re going to spend a third of your life at work, it’s better to make sure it fits you.

Job hopping is losing its stigma

After 2008, professionals – especially young people – realized that loyalty to the company was already a thing of the past. Millennials believe that loyalty is a two-way street, a bilateral relationship that companies have broken demonstrating that in difficult times, no one is essential. This has caused the devotion and feeling of belonging to the company to be diluted in favor of the needs of each worker.

This reality has changed the way we see the job hopping overnight, having a whole generation of workers questioning their own future and acting accordingly.

Although this concept is one of the most mentioned in any economic news, the truth is that we will try to give a more accurate view of this important term.

Debt is the obligation contracted by someone who asks for something

Be it a natural or legal person or even a country in which a series of conditions that must be met are previously established. It is very important to know this term so common in our day to day because it is the tool that allows in any economy to accelerate or decelerate the rhythms of growth.

Therefore, there is always a debtor who is the one who asks for the money borrowed and a creditor who is responsible for lending or delivering that amount. Now, although the most common is talking about money, they can also be tangible or intangible assets.

The debt should not be confused precisely with the amount to be repaid since we must distinguish more specifically between the debt and the amount owed. The most common is to find a personal loan in which there is a debtor requesting a certain amount of money to buy a car for example and a creditor that this case would be the bank with a capital that would be the amount of the loan subject to a plate and a certain interest rate that are the conditions of said loan. In this case, the amount due would be the requested capital plus the corresponding interest previously agreed.

As we have been saying, it is a very relevant concept because it allows us to obtain something immediately and pay it over time and meet the conditions established between both parties. To contract a debt means to pay expenses or investments in exchange for paying an amount greater than the amount received.

It is a very valuable instrument for the economic sector because with it you can face actions without having the necessary amount to do so and therefore allows the economy to move and be more active.

Basic problem to be encounter of a contracting debt

The basic problem that we encounter when contracting a debt is precisely what has happened years ago with the crisis that we have experienced in our country and it is to overcome the indebtedness capacity of each one since we will not have enough income to be able to fulfill the established agreement. For this reason it is necessary to study very well before the current capacities and resources such as those foreseen in the future before in order to be sure that the amount borrowed together with the interest can be repaid within the estimated timeframe.

At Petrus family we are specialists in the financial sector, so we always offer you the opportunity to choose the financial products that best suit your needs without exceeding your own borrowing capacity.

For many Finns, buying a home will become a topical issue at some point in their lives. However, a mortgage requires either a guarantor or sufficient savings. For this reason, many people start saving for an ASP account for this purpose.

However, this is a big loan and the mere saving of an ASP account is in itself a nice amount. Occasionally, life can come up against unexpected situations, and you may have to consider withdrawing your ASP money account if there are no other major savings.

What happens if I close my ASP account?

Completely terminating your ASP account will mean that no additional percentage will be paid. Normally an additional interest of 1% is paid on an ASP account at a contractual rate of between 2% and 4%. However, the current capital, ie the deposit, is not lost and there are no other specific sanctions. Thus, if you terminate your ASP account, you will forfeit the agreed additional interest, but will still receive the deposit plus the 1% interest charged on it free of tax.

Normally, the tax authorities charge a withholding tax of 30% on the deposit rate, which the bank automatically pays to the tax authorities. You will not be charged this 1% interest on your ASP account.

If you often have to wonder if money is needed, just a regular savings account can be a good option.

In an emergency, is it worth terminating my ASP account?

If you know you are going to buy a home, of course, the smartest solution would be to keep the money in your account and let them charge an additional 2-4% interest instead of spending it on something. Interest will only be paid if you reach your savings target and buy a home.

The reason for closing your ASP account is probably because the money is needed for some other purpose. However, the first thing to think about is whether to wait until payday. If your need for money is really sudden and low, consider whether a credit card would be a good option, for example. It can also be easier to get this than to unblock your ASP account.

Some credit cards have a very reasonable interest rate of less than 10%. In addition, credit cards offer an average 30-day interest-free payment period, during which you do not have to pay interest. So if you know you can fix your cash situation the next payday, a credit card can be a handy financial solution. However, the ASP account accrues interest, and it is a good idea to break the interest-on-interest phenomenon.

What if you could not pay your credit card bill in full on the next payday

But for example by reducing it by $ 100 per month? The following calculation assumes that the ASP account would be used to purchase a home within three years and the money has been in the account for one year.

• $ 10,000 x $ 1.05 ^ 3 = $ 11,576.25, or three-year revenue from your ASP account
• The ASP account therefore generates a profit of € 1,576, which is the limit on the profitability of a loan
• The total price of a € 100 credit card bill would be our comparison with a maximum of 21.92% real annual rate of € 1,219.2
• If the loan were to be repaid 100 € / month, it would be paid off in about a year.
• The total cost of using a credit card would be less than the revenue from your ASP account
• So using a credit card instead of closing your ASP account would be profitable in this case!

However, the result of the invoice depends on the amount of savings in your ASP account and the amount of credit used. The basic principle is that if the total cost of borrowing is less than the interest earned on your ASP account, then borrowing is profitable. However, the loan must always be repaid in full from your own income.

On the other hand, some credit card issuers charge an annual fee even if the card is not used at all. Others add an account management fee on top of the interest if you have an interest-bearing credit on the invoice, while some charge on the interest other than interest.

From our comparison you can see the costs and other features of all credit cards listed so you can choose the one that suits you best. There are many differences and some credit cards can also offer the benefits that are right for your situation, so compare carefully.