How to spend 13th Month Pay

January 6, 2022
13th Month Pay

The most delightful time of the year is Christmas. How to spend your 13th month pay can be the most difficult issue to answer, with vibrant decorations, tons of things on sale, and celebrations everywhere.

The desire to make yourself and your loved ones happy can make budgeting for the holidays stressful and agonizing. Of course, you want to thank yourself for working so hard all year with the latest gizmo. You also want to treat your family to a delectable holiday meal and fantastic gifts.

So you’re undoubtedly thinking about how to make the most of your 13th month’s income. Here’s a list of things you can do with the money you’ve been given by the government/private sectors.

How to Make the Most of Your 13th Month Pay

These are just a few guilt-free activities you can engage in with your 13th month income. You can check off multiple items on this list if you manage it well!

Clear Your Debts

One of the nicest presents you can offer yourself this Christmas season is peace of mind. You’re giving yourself the potential to enjoy a debt-free future by paying off your loans.

The peace of mind that comes with knowing you don’t owe anyone any money is precious, and it will allow you to fully appreciate the holiday season and rejoice with your family.

However, you don’t have to spend your entire 13th month’s wage to pay off all of your bills. Begin by determining how much you owe and paying off the debts with the highest interest rates and fees first.

The most expensive loans are those with the highest interest rates. You can minimize the monthly interest by paying off a portion of the debt. You can even pay it off in full and be debt-free in 2022 if you can afford it.

Consider investing your 13th month income if you have little to no debt and don’t know what to do with it. Stocks and mutual funds, for example, are excellent sources of passive income if you fund them on a regular basis.

You’ll have a lot of alternatives for how to spend your Christmas bonus wisely if you do it this way.

  • Mutual funds and UITFs – If you’re new to the game, you can start slowly by opening both or one of these investments. You can get started for as little as PHP 1,000 with very little risk.
  • Stock investing — If you’re looking for a more difficult challenge, try your luck with stocks. Because it’s a high-risk, high-reward investment, make sure you understand how the stock market operates.
  • Investments in Pag-IBIG/SSS – You can also opt to put your money in government-regulated funds to ensure that it grows. You can begin with as little as PHP 500.
  • Invest in real estate for your future home. Real estate is one of the most lucrative 13th month pay investments. 

Your bonus will not, of course, cover all of your expenses. It should, however, be sufficient to cover the cost of an empty lot or a rent-to-own condominium.

Even if you don’t intend to live there, you can rent it out to tenants or business owners and profit from the rent.

Fund a Business

Your 13th month income might potentially be used to start your own small business. You’ve undoubtedly considered the idea before, but lacked the necessary funds.

This is the ideal time to do so. There are a lot of low-cost company ideas out there; all you have to do is strategize. Here are a few excellent examples.

  • Invest in a piso Wi-Fi vending machine instead of opening a computer business. It’s less expensive and easier to manage. To get started, you’ll need a good broadband package and a powerful Wi-Fi router.
  • Cake and pastry business – It’s become a cliché, but there’s a reason why it’s so popular. For starters, if you already have the necessary equipment, it only costs PHP 3,000 to PHP 5,000 to get started. What’s more, who doesn’t enjoy pastries?
  • What more do Filipinos require besides bill payment services? For their bills, they need more payment options. Take advantage of this opportunity to establish your own business by purchasing a point-of-sale equipment. You can begin with as little as PHP 5,000.

Purchase an Insurance Policy

One of the most crucial investments you can make is in insurance. Because it isn’t a pressing need, most Filipinos tend to disregard it. 

However, the universe is unpredictable and unjust, and you never know when catastrophe will strike. You may now afford the following types of insurance in the Philippines thanks to your 13th month earnings.

  • Life insurance – You can insure yourself or your loved ones to protect the surviving family members from going bankrupt if you die. It may seem morbid to buy something like this, but it’s a vital investment.
  • Car insurance – You should insure your car as well so that you can cover the costs in the event of an accident. Even if you’re confident in your driving abilities, some motorists are unfortunately less so.
  • Home insurance protects a residential property from loss and damage caused by human error or natural calamities.
  • Health insurance – While the Universal Healthcare Law guarantees that all Filipinos have access to free health care, you can still purchase additional insurance coverage from private insurers. 

Prepaid health cards are becoming increasingly popular, especially because they are now accessible at inexpensive pricing, allowing anyone to obtain healthcare. .

Final Thoughts

Knowing how to spend your 13th month’s income carefully will help you give the holiday season a more meaningful meaning. It’s hoped that by focusing on the more important things, you’ll be able to avoid succumbing to your buying desires.

Your 13th month pay doesn’t come around very often, and not everyone gets it. Make the most of your 13th month now that you know how to spend it properly. After all, you may easily save money by checking out the things in your cart next year. 

Make sure to spend the additional cash on things that are more useful and worthwhile.