How to Best Spend Your 13th Month Pay This 2018
Getting your 13th-month pay or Christmas bonus will always be something to look forward to during the approaching holiday season, as it means a considerable bump in your usual paycheck. But before you succumb to the temptation of splurging it all on a holiday-induced spending spree, consider that there might be better ways to handle this seasonal windfall than just by being a one-day millionaire. Here are some examples that you may find interesting in that regard.
Buy an affordable yet quality mobile device or smartphone
Flagship smartphones, especially those that come from super-popular brands such as Apple and Samsung, have become more and more expensive with every generation. While it’s true that these mobile devices are an epitome of the bleeding edge of technology and offer a ton of neat features—thus making them very tempting to purchase—the fact remains that they cost a small fortune to purchase on their own. Moreover, they could even eat up your entire 13th-month pay—as well as some of your savings—depending on just how much you earn. This is not only financially irresponsible, but it could also lead to more unwise spending decisions in the long run.
Instead of buying something you can’t currently afford, why not purchase a current smartphone model that’s more affordable yet still high-quality? With competition among smartphones being as heated as it is, there’s a very good chance that you’ll get a gadget that looks and works just as good as many flagship models, except without the premium price tag. One particular recommendation we can make here are the latest ASUS smartphones like the Zenfone 4 MAX LITE. This particular gadget is priced reasonably well despite its powerful features, while also having the premium looks to match.
Pay your debts
Do you owe anyone money? Whether it’s a friend, a co-worker, a relative or even your credit card company, put your 13th-month pay towards reimbursing them of the money you owe them. This does two things: first, it gives you one less thing to worry about for the rest of the year and next, and it gives you another opportunity to ask help again when the time comes that you’ll need monetary assistance once more. After all, no one likes someone who keeps taking on debt without having the decency to pay the money back—and especially not formal financial institutions.
Save it for a rainy day
We’ve all heard this advice before: save any extra money you get after all your unavoidable expenses in the off chance that you’ll need it for an emergency or a “rainy day.” While this will mean that you won’t exactly be able to enjoy the fruits of your labor and partake in a bit of holiday fun, the fact that you’ll be financially stable and prepared for any emergency that may come your way more than makes up for it. As painful as it may seem, consciously saving up is also a great sign of financial maturity and literacy, something that we all need more especially in these trying economic times.
Treat yourself
Treating yourself could be something as simple as using your 13th month pay for a gym membership or upgrading your home computer/laptop into something more powerful and efficient. This kind of self-investment not only shows that you know how to take care of yourself without going overboard, but it also has the potential to increase your ability to earn money by boosting your productivity. That’s the kind of investment worth making.
Invest in mutual funds
Investing in a mutual fund may seem like something that only the affluent or the ridiculously rich get up to, but thanks to the wonders of modern banking, all you need is a bank account and PHP5000 to get started. Simply inquire with your bank or an individual mutual bank company to see if they offer any mutual fund investment options for you that you can take up. They may also have a professional fund manager on staff for you to consult or an outside one they can recommend you to.
By investing your 13th-month pay into a mutual fund, you’re essentially allowing it to grow beyond the amount that you received, making it earn money for you even while you’re asleep. This is called passive income—earning money while doing absolutely nothing. With enough time and further investments, this income may be enough to let you retire early, allowing you to enjoy the fruits of your labor while you’ve still got the energy to do so.
It may be tempting to simply spend away from your 13th-month salary as soon as you get it. However, by depriving yourself now of that momentary pleasure and seeking to do something a bit smarter with the money instead, you can reap the benefits of being financially secure and stable in the long run, which can lead to even more good times ahead.
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