For employees, receiving their 13th month pay is the best part of the year. Some of them are lucky enough to also receive Christmas bonus. But sad to say, many people (not only Filipinos) say that the money they received have simply vanished in the wind. So before you get too excited, here are seven useful tips on how you can spend your 13th month pay wisely.
#1 Plan ahead
There’s nothing better than planning what to do once you received your 13th money. And because you already know how much you will receive, you can easily create a plan. To start with, you should know your priorities and make sure you have a very strong will to really prioritize them. Otherwise, you’ll end up hitting your head on the wall or cry like a baby.
#2 Save a portion
Yes, saving a portion (at least 30%) of your 13th month pay is very good move. If you received P20,000, remove the P6,000 immediately, and assume that you don’t have it. Make this a top most priority in your list of the things you plan to do with your money. In case your computation suggests that you can’t save, cut your planned expenses for your Christmas vacation.
#3 Pay your debts
First of all, pay your debts. There’s nothing better to start the year without worrying about your debts. This including paying your loans banks and credit cards. In doing so, you will also be saving money from the huge interest of the accumulated unpaid payments. If you borrowed money from people, be considerate and don’t wait for them to remind you about your debt.
#4 Start an investment
Investments include starting a small business, and investing on the stock market or mutual funds. However, make sure you study first the risk factors before you let go off your money. To avoid being a victim of pyramiding scams, do a thorough research and don’t be blinded with sweet promises that your money will double in a very short time. Use your common sense.
#5 Be a smart Christmas shopper
There’s nothing with rewarding yourself and giving gifts to your friends and family. However, you should be a smart Christmas shopper even if you have the enough budget. Know the stores that sell cheap but high quality items, and be patient in comparing prices. Avoid impulsive shopping, especially on gadgets. Don’t be emotional, and buy with logical thinking.
#6 Practice re-gifting
You may feel awkward at first, but re-gifting is a practical way of giving gifts this Christmas. It’s giving the items that you received, but those things are not useful to you anymore or you simply don’t like them. It’s not just about saving money from gifts, but rather allowing things to be used and enjoyed by a more suitable owner. However, make sure that they still look new.
#7 Share your blessings to the needy
We all know that there are many people who badly needed help. So instead of buying unnecessary things this Christmas, why not donate money to charity? In fact, it’s better if you’ll be the one to offer help personally. Simply look around and you’ll surely find poor families and hungry children. Besides, isn’t giving to the needy the real essence of Christmas?
Merry Christmas and a Phosphorus New Year!!!