
The year 2020 is set to come to its end as December is fast approaching, and we all know what this means — your much-awaited 13th month salary is also coming. But before you proceed to buying random stuff and other expensive purchases, you might want to consider this read that will give you options on where you can spend your 13th month pay wisely and not just squander it.
Ponder the following ideas to make the most out of your year-end bonus:
1. Settle your debt

Debt has the huge potential to take the best out of your holidays, and the best option to put your year-end pay is through paying all your dues and welcome the New Year being debt-free.
Now is the perfect time to get rid of your debt — or at least lessen them. If you have unpaid credit card debt, settle them before even thinking about spending again. The same can be applied if you’re investing into a car or a house; if you think you received bigger bonus that what you just need, then it’s best if you can advance on your payments to free up for the new year. You can start dealing with your debts by making a list of them and sorting them by priority.
2. Create your emergency fund

An emergency fund is the money you save up to set aside and use when unplanned financial expenses occur like family crises which can support the unemployment of a family member, health issues, and an abrupt travel expenses due to serious matter. This can also support personal matters like unfortunate loss of job because of company shutdown or retrenchment, mostly during the pandemic.
You can open a separate bank account to save money for your emergency fund or any kind of urgent needs. You can deposit the money from your 13th month pay in your emergency fund. Although there is no need for you to use all the money from you year-end bonus to deposit to your account. You can start the emergency fund account by putting in a certain amount from your pay. It will really help you to make a habit of saving up.
3. Invest in your personal growth

Investing in your personal growth simply means you are investing in yourself. You can use your 13th month pay in doing so to help you better yourself as you are becoming more prepared to a bigger life. Investing in your personal growth can be joining in a specific course to develop your personal growth. You can also purchase some books to enrich your knowledge and improve yourself. You can join a workshop, certificate course or a seminar to enhance your skill in a significant working area or education. It will help you to upgrade your resume by including your new skill or education. It will also expand your own room of opportunity to increase your income.
4. Get a life insurance

The perfect time to get a life insurance is always “now”, because as the general rule states, life insurance is less expensive the sooner you start to purchase one. Meaning, life insurance becomes more expensive as you get older. Life insurance can actually act as a protection to several financial necessities, it can also guard your family needs when there is a loss of income due to unforeseen circumstances. So go get yourself insured as you get your 13th month pay before it gets to nowhere.
5. Enhance your hobby

Freelancing is a great strategy to make another source of income. If your hobby is photography or if you have a talent for being a photographer, you can use your 13th month pay to purchase a new camera and other equipment for photography. Youtube is a great platform in order for you to learn more about photography. You can work as a freelancer of photography services for different occasions or events. If you are working as a graphic artist, content writer, software developer, or website designer, you can invest your 13th-month pay in buying a new laptop. It will allow you to work from anywhere to increase your income. It will be one of the most advantageous way to increase your income with the help of your 13th month pay.
6. Spend

Yup, as simple as it sounds, spend. You deserve to spoil yourself this holiday season. So go ahead and buy that dress or bag, or get a new phone using your 13th month pay. But please do it wisely. Discounts and great deals are abundant during this time of the year so you wouldn’t have to pay the original price for anything. Also, it’s best if you will not spend all the money from your year-end pay and invest some instead to the aforementioned suggestions.
With these above-mentioned options, your 13th month pay has the potential to provide you more money instead of it being served as just a year-end bonus. Whatever you might end up doing with your pay, just remember one thing: avoid impulsive decisions.
Happy holidays!