The vast majority of Norwegians are paid holiday pay in June. And after two years of pandemic, many have earmarked the money for a trip to the south. 4 out of 10 say in a survey Ipsos has conducted for DNB that they will use the holiday money on holiday. That is a good eight percentage points up from before the pandemic (ie 2019). – Naturally enough, we are hungry to travel after two years of pandemic, says consumer economist Silje Sandmæl in DNB. There are also 4 out of 10 who say they will spend their summer holidays abroad. But it is not certain that this is the year you should aim for the holidays abroad of all time, the experts also warn. High prices for electricity, food and fuel prices in addition to many announced interest rate increases mean that it may be wise to make a plan for the money. Here’s the economists’ best advice: Pay down expensive debt – If you have a consumer loan or credit card debt, you need to repay it. This is my very first piece of advice, says Thea Olsen, consumer economist at Danske Bank. The debt you have will become more expensive the longer the interest rate runs. Therefore, you may want to pay down consumer loans and credit card debt with the holiday money. Photo: Mia Becker / news Due to the fact that interest rates are high, the debt will be much more expensive to pay down the longer you wait. She also advises you to repay your mortgage, if you have the opportunity. – Those who have a mortgage will know this to a very large extent. One should be sensible with the holiday money, and prepare for the fact that autumn and winter can be tough. Fill up your buffer account Many people notice increased prices and that after a tough winter with high bills. Therefore, the consumer economist believes that it may be wise to set aside some money. Norges Bank has announced seven interest rate increases before 2024. – Norwegians must prepare for this, and perhaps one of the best ways is to set aside their holiday money in a buffer account, Olsen says. In this account, the consumer economist advises that you set aside money for worse economic times. Because Norges Bank has announced 7 interest rate increases during the summer, consumer economist at Danske Bank, Thea Olsen, says that it may be wise to have one or more buffer accounts. Photo: Danske Bank If the washing machine breaks down, or the car has to go to a workshop, it is a good idea to have a little in the back. The same applies if the interest rate is raised a lot. But how big a buffer should one have? – A rule of thumb is to have a net monthly salary easily available, says consumer economist Magne Gundersen in Sparebank 1. If you have fewer obligations, you can have a slightly smaller buffer, but if you have cabins, cars and boats, you may want to have more. Economist and program manager at Luksusfellen, Lene Drange, says it may be wise to save in different places. – Many people may have the buffer in a high-interest account and may have some in the fund. Large expenses can usually be planned a little, she says. Lene Drange comes with well-meaning advice. Photo: Private Pay in local currency Drange also warns Norwegians against thinking that they are as rich abroad as before. Weaker krone exchange rates mean that you get fewer euros, pounds and dollars for every krone. – We are not so rich anymore, and it will be a while before we get back to where we have been, Drange says. And when you are abroad, it always pays to pay or withdraw money in local currency. – It is extra important this year if you are going on a trip, she says. The consumer economist advises not to spend money you do not have on traveling abroad. Photo: Petter Strøm / news Enjoy yourself But what about the southern holiday? Does it have to be shelved? – That holiday pay goes to its purpose, I think is good, says consumer economist Silje Sandmæl in DNB. – It is important to think about how you want to use your holiday money so that you are not in the red after the holiday. In the Ipsos survey we mentioned above, every fifth person between the ages of 18 and 25 says that they want to spend their money on food, bills and consumption. Of those who are between 26 and 29, just as many say that they should save their holiday money. 18 percent that they have not made plans for what they will use the holiday money for. – Enjoy yourself, but do not spend money you do not have. The holiday money should not go to a trip to the south, if you are already a little cramped financially, Olsen says. She adds that it is not a human right to go to the South. – Children can have an equally good holiday at home. It is the imagination of the parents that matters, says the consumer economist. Photo: Dina Storvik / news – Many have access to mountains and sea, fishing lakes and tourist cabins. If you think that you should create the best holiday memories for the children, you can do so with a clear conscience in Norway. Do not feel new rich In addition to the holiday money, it is not long since many got back on the tax. Drange, on the other hand, warns against withdrawing even if you now have a number of kroner in your account. – That combination is a little scary. It is life threatening to feel newly rich. She recommends making a quick calculation to get an overview – If you tend to be paid 35,000 kroner and now get 55,000, it is really only 20,000 kroner extra.
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Here are the tips on how to use the holiday money – news Nordland
