8 Wais Options to Manage Your 13th Month Pay Better

Dec 4, 2020

It’s that time of the year again. The year is almost over and for many Filipinos, it means one thing: 13th Month Pay is coming soon. In fact, for some of our lucky friends, they even get up to 15th month pay. You deserve all of these because of all the hard work, especially this year.

However, the question remains. What do you do with this amount?

With the way the world keep hitting us with challenges and troubles, it might not be a good decision to squander the entire amount away. So, here, we have for you, some options in proper management of your 13th month pay.

  1. Save it all for your emergency fund.

If there’s one thing the COVID-19 taught us, it’s that you can never predict how life will turn out. No preparation can tell you what the world will be like in the upcoming months, even days, if we’re being honest. However, you may feel a little safer against the uncertainty once you establish an emergency fund.

In ordinary times, when we live paycheck to paycheck, it could be harder to set aside a specific amount of money in storage until a rainy day. So, now that you have a larger sum with no particular purpose, it might be your best bet to keep this amount aside. According to experts, the ideal emergency fund must amount to at six months of living expenses. You’ll appreciate having this at hand just in case you get sick, an accident happens, you need immediate home repairs, or a natural calamity strikes, just like this one.

  1. Use the amount to make your hobby turn into an income-generating opportunity.

If your 13th month pay is high enough to serve as a small capital for a tiny business, you should grab that chance and do it. Now, more than ever, is a side hustle so much more important. You can start one by looking at your hobbies and things you are feeling passionate about. This will ensure that you will enjoy the business venture you pursue, and those positive feelings will also motivate you to journey on. Remember, starting a business does not require a big capital. Start small and see it grow through determination and hard work.

  1. Pay off your debts.

This year has hit us quite hard, so it won’t be surprising if you ended up racking up some debt. It may be a personal loan, some credit card bills, or for huge purchases like homes or cars. We all know that we usually worry when their deadline is coming and we haven’t prepared the payments yet. Why not use these few thousands to clear out a chunk of the things you owe, just so you can ease up on the tension a bit.

  1. Spend some cash to upskill and improve yourself.

Life is a journey of continuous learning. If you’re eyeing some advancement in your career, or if you’re looking to expand your skills, this is something you can spend your money on. Nowadays, there are many online course providers. They come with minimal investment and some even come with certificates from prestigious universities. There’s nothing else you should invest more than yourself. So, truly, this is something that you should consider.

  1. Plan for your retirement.

It might not seem like it is coming soon. But time can swoop by without you noticing. Just to be safe, it is best to start planning for your future today. Where will you get your needs when the time comes for you to quit working? Retirement is unavoidable and it is in your long-term future.

In this matter, you can strategize by leaving this into a high-yielding savings account, set up for a time deposit, or put your money in investment funds.

  1. Beautify your home and make some repairs.

2020 gave us a lot of time to spend inside our homes. Come to think of it, our houses need some extra TLC, especially as they served as both our work place and comforting embrace at the end of the day. Try taking a look at what needs to be repaired or renovated. Aside from having improvement on your home, it will make you feel fulfilled once you have a tangible proof of where your 13th month pay went and you see how it made your headquarters much cozier.

  1. Reward yourself.

We know that savings is important, but your happiness is important, too. It’s essential to prepare for your future, but not to the extent that you forget to enjoy today. Life is meant to be lived so allow yourself a small bonus to celebrate your victories for the year. Giving yourself a reward might even inspire you to have a better year ahead, which will help you become a better and happier version of yourself.

  1. Invest in a P2P platform to grow your money even further.

If you don’t have any concrete plans yet on where you want your 13th month pay to go, why not make more money from it instead? Investment opportunities can open so many doors for you, and you don’t need to start with something drastic. Nowadays, investment is made easier by P2P platforms like Blend.ph. In P2P funding, you lend out your money in an online platform for different types of borrowers. You will be able to generate income through the interest rate you can get from these loans.