How To Spend Your 13th-Month Pay Wisely

December, the busiest time of the year! A lot of people is thinking what to give for their families. SALE at the malls is everywhere! This is also the time that most of Filipinos receive their 13th-month pay. 13th-month pay is a bonus that employers give to their employee's before the end of the year. When I started to land my first job and got my very first 13th-month pay, all I do was to spend it to travels, gimiks, and gifts for my families and inaanaks. Now, being a mom to 3 kids and the sole breadwinner of our family, those money mistakes made me learn to spend our money wisely. So I want to share my personal experience on how you can spend your 13th-month pay wisely.

Open a bank account. First and foremost, open a savings account. There are a lot of banks where you can open your account from. Its more advisable if you get the passbook but having an atm is also convenient as it allows you to have an online account. Opening a bank account costs P5,000 - P10,000 depending on the banks. And that's a small portion from your 13th-month pay. Opening bank accounts for your kids is another great way of spending your hard-earned money. In that way, all their money gifts this Christmas will go directly to their account. 

Invest. I know for some investing may sound technical and jargon but if you really want to learn something, there is a lot of information now online. What I would recommend? Start with unit investments from banks. If you already open a bank account, ask the teller. Never dive into something you don't know about. Always research and read. Investing doesn't require big amounts. Bank's unit investments are affordable where you can invest for as low as P1,000 a month. Another option is a Mutual Fund. Sunlife Mutual Fund will sometimes open promos such as P500 for the initial deposit. Our 13th-month pay bonus is the best way to add more funds to this initial investments for future month's deposit to worry less and let it grow there for several years for higher potential earnings.

Talk to a financial advisor. Now here's something not all people are aware of. People think that getting a life insurance is just for the breadwinner of the family. There are a lot of benefits one can get from life insurance like retirement, travel fund, and you can even use it for real estate tax. The latter was my reason when I got my first VUL from Sunlife almost 4 years ago. I was concerned that my mother will pay the estate tax of my mortgaged house when I am gone. It was the best decision I made because a year after, my twins were born. Opening a VUL doesn't cost much. If you can buy yourself an updated smartphone, you can definitely get one. When I got mine, I initially paid for P6,000 (this was 5 years ago at 27 yrs old) and I am paying for a quarterly premium. Talk to a Sunlife Financial Advisor and provide your financial goals. Having a financial partner is the best way to achieve your lifetime goals.

Complete your emergency fund. An emergency fund is a set-aside fund in case of emergencies. An advisable amount is at least 3 months of your salary. Recommended setting aside at least 20% of your monthly salary. Pay yourself first is the most important part of this process. Add a portion from your 13th-month pay and it will easily help you complete this fund.

Pay your debt. Like any other Filipinos, I also have debts. But I am restricting myself from debts that is not a necessity (no credit cards and loans from any loan company). No to installment appliances too! The major debt that I am prioritizing is my mortgaged house. We still have a long way to go and adding a top up to reduce the principal amount is one great way of using your bonus. 

Buy items for extra income or invest in a new knowledge. One reason that I should buy a new gadget if it's really needed and not just for luxury alone. I got myself a new laptop for blogging where I have ads, sponsorship's, and collaborations that also add as another source of income. I add up a small portion from my 13th-month pay for me to be able to buy a new laptop for my blogging sideline. 

Another great way of spending your 13th-month pay is investing in a new knowledge like paid seminars, tutorials, and the likes. This is a great addition to your new skills to provide a better service to your chosen field.

Overall, there are a lot of wise ideas on spending your 13th-month pay. Start now and you'll surprise yourself on how much money you can save. Bear in mind that you can make sense on every peso you spend.