Here are 7 top ways to spend your 13th month pay wisely

Most employed people eagerly look forward to receiving their 13^th month pay. During the first two weeks of December, social media was abuzz with statements like “13^th month pay is waving.” How have you spent your 13^th month pay Philippines? The answers vary from one person to another. Many factors, ranging from age, occupation, priorities, to upbringing, and even lessons from the pandemic influencing spending decisions.  In the Philippines, 13th month pay can be gone in an instant. Yet there are also those who carefully plan what to do with this mandatory benefit given to employees.

There are those who proudly pat themselves on the back and shout out “thank you for your hard work, self,” while at the same time looking beyond themselves.  Here are other top ways to spend your 13^th month pay wisely, some of which were gleaned from working professionals randomly approached and queried how they think they can wisely spend the annual benefit.

1. Use part of your hard-earned Philippines 13^th month pay to start, or beef up, your emergency fund. We never know until when Covid-19 will linger. The pandemic has ingrained in lots of people the huge importance of having an emergency fund. Not losing sight of such important things, or saving “for a rainy day,” are crucial.  Nonetheless, some self-care is also important.  Natasha, 27, a teacher, said, “I save half of my 13^th month pay, then I spend the other half for bills and groceries.” She added, “If may natira (if something is left), I buy something for myself.
2. Pay yourself. Buy a nourishing meal and set aside a portion to ramp up any ‘fun’ funds you have. If you are a practical person, purchase that comfy bed you have long been wanting to get, or that laptop or a new pair of shoes you really need. Aaron, 19, a call center employee who plans to re-enrol next year, matter-of-factly stated, “13^th month pay is a big help but you need to think about what you really need before buying those items that you ‘want.’” He shared, “When I received my 13^th month pay, I just bought one necessity in my list – a stand fan plus an extra pair of black socks for work.”
3. Allocate a hefty sum for loved ones. A BPO employee who belongs to a large clan said, “My 13^th month pay is always reserved for my gifts for my father, eight nephews & nieces, seven siblings and their spouses.” She added that she usually does not give gifts during birthdays.  Another working girl, Jen, 37, who is a mother of two, said she uses her 13^th month pay to buy the needs of her family, but she also saves and invests a portion into her small food selling business.
4. Clear outstanding bills. It can be a good way to use one’s 13^th month pay, too, since it is a solid step towards possibly being debt-free in the future. Prioritizing expenses, rather than going on a mindless spending free, will let you enjoy the fruits of your labor.

One may be living from paycheck to paycheck, especially when relied on by lots of relatives, or saddled with debts, but that person can do something to change the future. He/she can gain the upper hand on finances, such as through debt consolidation, and eventually even impart greater financial literacy on dependents. By not taking any step to effect change now, things will miserably continue as they are.

5. With Covid-19 restrictions easing up, spending on travel and leisure, like going on a much-needed family outing while still adhering to safety measures, is another great way to use one’s 13^th month pay. Spending one’s birthday or anniversary on a cruise ship sounds grand.

Most travelers are required to present certification of two coronavirus jabs (or completed vaccine) before embarking on trips. Required proof of negative COVID-19 test result or recovery from COVID-19 for airline passengers arriving into the US, for instance, was announced in early December. Traveling may not have tangible financial return, but it is a great way to de-stress.

6.  Share monetary blessings with the less fortunate. This may be through community fund drives, or school-initiated donation campaigns to share food or other items to the indigent this Christmastime.

7. Choose to invest on personal growth, such as a skill-enhancing workshop, or on ways to grow your money. A netizen tweeted, “Invest it on something that can grow your cashflow. A well-studied investment can change your life. If it doesn’t change your finances immediately at least it changed ur mindset.”

Indian political leader Mahatma Gandhi stated, “The future depends on what you do today.” So create an additional income stream or another new source of income today. Beyond referring to `spend money wisely quotes,’ make a decisive step to begin investing in something that suits your risk tolerance and will allow you to reach your financial goals. A good example is peer-to-peer investment. Peer-to-peer lending, like what BlendPH offers through its platform, gives investors the opportunity to earn competitive annual returns on their investment without the involvement of a bank. It may take some time, but if you stay invested, the return will begin to grow. With patience, you will be thankful you made the move to invest. The question ‘how does investing work’ may have crossed your mind. For tips and assistance on how to move ahead financially, visit Blend.ph.