How to spend your 13th month pay wisely

By Published On: December 7th, 2022
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Your long-awaited bonus has arrived as 2022 draws to a close. Due to people’s 13th month bonuses and all that comes with the holidays, expenditures rise during this time of the year. Even though the list of things we could buy starts to grow in our minds, we must keep in mind how important it is to use these bonuses responsibly.

Such additional compensation isn’t something that you should take for loghtly, given all the circumstances of this new normal we are facing due to the pandemic. Understanding the various ways that you might manage your money for both the short and long term will help you make better financial decisions rather than merely splurging on items you don’t actually need.

Here are 9 ways to spend your 13th month pay wisely!

  1. Pay Off Your Debts.

Now is the ideal moment to pay off, or at least lower, your debts. Keeping track of your finances is a lot simpler when you are debt-free. There is nothing more liberating than beginning the year without any debt and realizing that your money is yours!

2. Establish On Your Emergency Funds.

It may be difficult to set aside some money with all of our personal duties, but it is imperative. The standard recommendation for savings is to set aside at least three months’ worth of regular spending. Even if you won’t need the entire sum immediately, it’s advisable to start building with it right away.

3. Start Saving For Your Retirement.

Once you reach a particular age, you’ll either no longer desire to work or be unable to work. You must be equipped with funds to maintain your standard of living and the standard of your family when this time arrives. Your future self will be grateful that you save for your future.

4. Learn To Invest.

Investing your money is one of the best things you can do for yourself. Your money will work for you if you invest. You must determine which of the several investment options best suits your financial objectives. Even though it might take some time, once the return starts to increase, you’ll be glad you made the investment.

  • Mutual funds and Unit Investment Trust Funds (UITFs) – For as little as ₱1,000, you can begin investing in mutual funds or UITFs. You might decide to try both or one of these investments if you’re just getting started.
  • Stocks – You can also invest in stocks if you want something more difficult with potentially larger rewards. Make sure you understand how the stock market operates because it is a high-risk, high-reward sort of investment.
  • Pag-IBIG MP2 and SSS PESO Fund – If you’re seeking inexpensive and risk-free investment options, these government-guaranteed savings programs are excellent choices. For instance, you can start investing with Pag-IBIG MP2 for as little as ₱500.
  • Real estate investments – How about purchasing real estate? Investing in real estate is one of the top 13th month pay strategies. Without a doubt, your bonus won’t cover all the costs. But it ought to be sufficient to cover the down payment on a vacant lot or a condominium that is rent to buy. You can rent it out to residents or company owners and profit from the rental fees.

5. Start Your Own Side Hustle Or Business

You can launch the side business you’ve always wanted with the extra money. The greatest time to get started is right now, whether you’re starting an online store or a franchise for a business.

6. Help Those In Need

Giving back to those in need is always a wonderful idea, especially in light of everything that has transpired this year, from COVID-19 to the various disasters that rocked the Philippines.

7. Protect Your Loved Ones And Properties With Insurance

One of the most crucial investments you can make is in insurance. Since it is not an urgent need, the majority of Filipinos frequently ignore it. However, the world is arbitrary and unfair; you never know when calamity will hit.

You may now afford to purchase the following types of insurance in the Philippines, thanks to your 13th month’s income.

  • Life insurance – Invest in life insurance for you and your loved ones to protect them from financial hardship in the event of your passing. Although buying it might seem morbid, it’s a required investment.
  • Car insurance – You should also have insurance on your vehicle so that, in the event of a collision, you won’t be responsible for paying for any vehicle repairs and medical costs.
  • Home insurance – Having your home insured protects you financially from damage and loss to a residential property caused by either human error or natural calamities.
  • Health insurance – Despite the fact that all Filipinos are entitled to free health services under the Universal Healthcare Law, private insurers nevertheless offer extra insurance coverage.

8. Show Gratitude To Your Family, Friends, And Coworkers.

This is the moment to express your gratitude to your loved ones because it is the Christmas season. With all the discounts available over the Christmas season, you may be able to find meaningful presents at a reasonable cost.

9. Treat Yourself!

Remember to reward yourself. Give yourself a treat for working hard through the ups and downs of the past year. Given the various sales going on at this time of year, if there is something you’ve had your eye on for a long, now might be the time to purchase it. You have a right to take pleasure in your hard-earned money.

Spending prudently while beginning to plan for the future is ultimately the greatest method to get the most of your 13th month bonus. The effort you put forth this year is reflected in your 13th month bonus. It’s crucial to exercise initiative when deciding how to spend your bonus because this could serve as a springboard for building a better future for you and those close to you.

Giving the holiday season a more special significance will be easier if you know how to spend your 13th month’s pay wisely. Instead of just giving in to your cravings to shop, which just provide temporary satisfaction, put your attention on the more significant things that will ensure your future.

You don’t usually get paid for the 13th month, and not everyone does. Make the most of your 13th month now that you know how to use it properly. The products in your cart can simply be checked out next year if you just save the money. Make careful to spend this extra cash on products that are both.

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