Ah, it is that time of the year again, and I’m not talking about Christmas. I’m talking about getting your 13th month pay. But before you spend it all during the holidays, hear me out first. I know it’s hard to do, but control your impulses for a minute and ask yourself: “Am I spending my 13th month pay wisely?”
I know, it’s your money, do whatever you want with it. But as the country’s road to recovery remains slow and uncertain, it would be wise to spend your 13th month pay for your future instead. To help you do this, here are six tips on spending your 13th month pay and where to invest your 13th month pay as well.
Pay Your Debts and Bills First.
No, seriously. Before you even think about spending or investing your 13th month pay, pay off your debts and bills first. If you really want to secure your and your family’s financial future, settle any and all past issues today. Doing so lets you breathe a little easier during the holidays, as you don’t have to worry about your loans or electric bill for now.
Of course, you don’t have to pay all your debts with your 13th month pay. When settling your debts and bills, prioritize the ones that need to be paid as soon as possible. Be sure to not let your debts pile up, as the interest rates of your debts and loans can make paying them difficult.
Make an Investment.
Another good use of your 13th month pay is by using it to invest in stocks and bonds. Investing allows you to legally gain passive income aside from your work salary. There are a variety of investments that you can choose from, such as unit investment trust funds (UITFs), mutual funds, and PAG-IBIG/SSS investments.
But before you commit to investing, make sure that you are actually ready to commit to it. Before you choose your investment, make sure to thoroughly research the company you’re investing in first. This ensures that you aren’t being scammed from your money, and you’ll actually earn a profit from it.
Use Your 13th Month Pay to Gain New Skills.
Aside from investing in stocks and bonds, another investment that you can invest in is yourself. Yes, studying and learning new skills can be tedious and difficult. But doing so improves your productivity at your current work and opens up new work opportunities to you.
In a way, investing in your skills is more valuable in the long run than investing in stocks and bonds. You can lose the money you’ve gained from investing in stocks and bonds, but you cannot lose the skills you’ve learned. In today’s fast-paced work environment, proficiency in a wide range of work is a great advantage.
Consider Getting an Insurance.
When thinking about one’s future, one should always consider getting insurance. Today’s world is full of uncertainties and troubles. Aside from the pandemic, strong typhoons, ordinary accidents, and other diseases also pose a threat to you and your family’s safety. Having insurance gives you a measure of security against these threats and safeguards your future.
Similar to investing, do your research before getting insurance. This ensures that the insurance policy that you will avail suits your needs. In addition, be sure to get an insurance plan that you can continuously pay so that your insurance policy remains in effect.
Preparing for your future is all well and good. But if you forget to take care of yourself in the present, then it would be all for naught. Giving rewards to yourself gives you a sense of satisfaction and accomplishment after a year of good work. Think of it as investing in your mental and psychological health.
This is especially important, since the previous year hasn’t really been kind to any of us. Giving yourself a reward, no matter how small or simple it may be, helps keep you motivated to continue working in the future. Another benefit of treating yourself, particularly if you’re buying a new phone or computer, is improved work productivity.
Work on Improving Your Home.
And finally, one of the best ways to spend your 13th month pay today is to invest in your home. Spending a portion of your 13th month pay in improving your home improves both its appearance and your productivity as well. After all, nobody wants to work in a cramped and inadequate office, right?
Of course, spending your 13th month pay for home improvement isn’t new. Many have been doing so before the pandemic. These home improvements range from simple home repairs and purchasing new furniture to complete home renovations. Doing so will save you more money in the future, as you don’t need to spend more money on home improvement anymore.
And we are done! Here are the six ways you can better spend your 13th month pay during this holiday season. Yes, the temptation to spend your hard-earned money on food and luxury items during this time can be overwhelming. But by following these tips and controlling your impulses, you can better prepare for your future instead.