It’s the most wonderful time of the year! Season of love and giving and season of receiving the most-awaited 13th-month pay of every employee. Don’t get ahead of your self though as you may regret it later! If you have no clear idea yet of what to do with your 13th-month pay, we’ve listed down 5 smart things to do with your 13th-month pay.
What is 13th Month Pay?
Every employee is entitled to a 13th-month pay as demanded by the Department of Labor and Employment (DOLE). It is a monetary benefit equivalent to an employee’s one-month basic salary.
Usually received during the Christmas season or the –ber months, many people look forward to receiving the 13th-month pay to be used for several reasons. If you’re already working, you know what I mean!
But because of that, many of us tend to spend the money even though still un-received. This is why we’ve listed down 5 smart things to do with your 13th-month pay so that you don’t end up regretting your financial decisions after the holiday season.
5 smart things to do with your 13th-month pay
1. Spend Wisely
As to how we should all spend every money received, 13th-month pay should also be spent wisely. Although many people think of it as an extra money to spend on their wants and lavish shopping sprees, this extra money when spent wisely will bring you good and even more extra money in the future! Save it now and it will save you the next time you need some money even though it’s not the Christmas season.
2. Buy your necessities
Just because 13th-month pay Is not a regular income, it does not mean that you can and you should spend it in any way that you want. Buying your necessities using this bonus is one of the smart things you can do with your 13th-month pay.
Especially if you’ve somehow deprived yourself of the things you need for the past months because your regular basic income cannot afford to spend for anything outside the norm. 13th-month pay will save the day! Instead of spending lavishly on branded clothes or things categorized as wants, learn to identify your needs and prioritize them. Get to learn more about wants vs needs on Bria’s article about 7 budgeting guides for the millennial investor so that you may become an investor yourself too.
3. Give Back to Loved ones
Season of love and giving. Yes, although we want you to save money for yourself, we can’t help but give back to the people who helped us or to our loved ones during this season. That’s what the Filipino spirit of Christmas is all about right?
Our moms probably already planned what she would like to ask from you once you receive your 13th-month pay such as brand new appliances. Giving back to them is not bad as long as you do not overdo it and know your limit. But of course, if you can’t afford to give in to the demands of your family, stay away from incurring debt! 13th-month pay is meant to be spent wisely and to keep you away from debts!
4. Clear your Debts
Speaking of debts, one of the smart things you can do with your 13th-month pay is to clear your debts. For breadwinners whose income usually goes to the family you feed or whose basic pay is not enough to spend on necessities, 13th-month pay may be of help when it comes to clearing out your debts – or at least wipe out a portion of it.
By spending your 13th-month pay wisely and paying off a sum of your debt, you’ll be able to achieve peace of mind for the holiday season. Isn’t that one of the greatest things you can gift yourself this time?
Although you might have already planned to spend your 13th-month pay somewhere else, clearing your debts before the end of the year will help you start on a clean new slate. No worries, you still have the say if you’d like to use a hundred percent of your 13th-month or just a portion of it to pay a part of your debt so that you can give back to your loved ones.
5. Make sure you save for the future
Saving money is a key habit in establishing financial freedom and building wealth. There are methods in saving money effectively but if you’re just figuring things out, using your 13th-month pay to kick start your savings might be one of the smartest things you can do with your 13th-month pay.
Especially if you have little to no financial obligations other than yourself. Limit yourself in YOLO-ing and start saving for the future instead. Plan out how you can buy your dream home or plan your retirement or build generational wealth with that. Nothing is ever too late as long as you have the passion for it! Remember, the best time to invest is always now.
Overall, these 5 smart things you can do with your 13th-month pay are just guides on how you can manage your money efficiently. Even though it’s not the holiday season or 13th-month pay we’ll be using, these tips will always be helpful to keep you on track when it comes to your financial expenses. And remember, it’s all about learning to prioritize this holiday season. Avoid regret and follow them and start identifying the things that matter.
If you’ve been saving up for your dream house as a gift for your loved ones, check out Bria Homes for a variety of housing projects nationwide. With over 50-projects situated in key locations, Bria Homes is known to be a provider of affordable house and lots and condominiums. You might think of investing in affordable condominiums as millennials or affordable house and lots for your family, Bria Homes got it both for you. Check out their properties here.
BRIA Homes is a subsidiary of GOLDEN MV Holdings, Inc., one of the top real estate companies in the country. Acclaimed for its massive footprint of over 50 developments in major Philippine cities and municipalities, BRIA Homes is committed to bring quality and best-value residential communities closer to everyday Filipino families. Through a diverse portfolio of properties such as house-and-lots and condominiums, BRIA Homes promises to provide the right property option for every Filipino’s needs.
To know more, visit their website at www.bria.com.ph, like and follow “Bria Homes, Inc.” on Facebook, Twitter, Instagram, YouTube, Pinterest, Spotify, Viber Community, Telegram Channel, Kakao Talk, LINE and WhatsApp, or call 0939-887-9637.