5 Ways to Spend Your 13th Month Pay Wisely

For Filipino yuppies doing the 9-5 job, Christmas means receiving that coveted 13th month pay. Do you know who else is eager to take their share of the bonus season? Retailers. But while it is tempting to give in to the temptation, thanks to the relentless sale ads you see everywhere you go, there is a much better way to spend your hard-earned bonus than splurging it on a whim. So, before you add to cart or swipe your card, here are practical ways that you can do with your 13th month pay!

Pay Your Debts

Start the new year with a clean slate by clearing off your debt records! Okay, we are going to be a little lenient and say it’s okay if you can’t settle everything, but make sure to use a portion of your bonus by reducing your loans. List down all your payables—credit card, telco, bank loan, what-have-you—and determine which is the most urgent. You’ll be surprised by how much you can save by no longer incurring those interests!

Have an Emergency Fund

If you still don’t have your rainy-day fund, now is the time to start building it. Experts say the ideal emergency fund should be equivalent to at least three months’ worth of your salary. We know that’s not an easy figure to achieve, so now that you have extra cash is the best time to build it up.

You can park your funds in a traditional savings account so you have easy access in case of an emergency. Another option is by opening a digital bank account like ING or CIMB, which both offer higher interest rates than traditional financial institutions.

Start Investing

Another way to spend your 13th month pay wisely is by investing. A word of caution: invest only what you can afford to lose. If it is your first time to invest, we recommend affordable and beginner-friendly platforms like GCash’s GInvest, which allows you to buy funds for as low as P50. You can also consider mutual funds, which have lower risk but relatively higher returns than traditional savings account.

But if you have established your emergency fund and want to try something riskier, you might want to look into stocks trading. Some of the established brokers to consider are COL Financial, First Metro, and Philstocks Financial.

Invest in Yourself

Investing isn’t all about money. Enroll in that language class, attend that bootcamp you’ve always wanted to try, or buy passes to a pole or dance class. Learning a new skill or upgrading existing ones is a great way to take care of yourself so you can face the new year with a can-do attitude.

Treat Yourself

As they say, “all work and no play makes Jack a dull boy.” And we’re no boring Jacks here, so treating yourself to something nice every now and then should not hurt. Whether it’s a me-time at the spa, a staycation, or a nice dress, rewarding yourself for surviving the year is warranted as long as you’ve set aside funds for equally important things like your savings and being debt-free.