How to manage your 13th month pay♥

source: Google.com

Many of us have been waiting for this... some may have received this already but according to the law, 13th month pay must be given to employees on or before December 24 each year.  A little explanation about the 13th month pay : "Under the law, 13th month pay shall not be less than 1/12 of the total basic salary earned by an employee within the calendar year."  

So how do we wisely spend our 13th month pay?  Please don't let your 13th month pay go to waste and be a "one day millionaire"  and spend everything.

Based on our experience during this pandemic if you don't have savings or emergency fund where can you get the money to pay your bills and buy your daily needs.  

Here are my suggestions on how you will handle your 13th month pay or if your company provides year-end or Christmas bonus.

1. Pay off your debt - You don't have to pay it in full, but at least paying part of it lessens your burden, and this will lead to financial freedom in the future.
2. Set up an Emergency Fund - I have already wrote a blog on this topic, on how to set up an emergency fund : just click on the link.
3. Open or start a small business - If you love cooking or baking you may start selling to your family and friends.  If you are into crafts, arts and etc.  there are a lot of things that you can sell especially now online selling is very "in" nowadays.  There are a lot of opportunities all you need to have is "sipag at tiyaga".  Based on my experience I have been in the online business world for 10 years and it's not a a walk in the park, but it's worth it.  Because all your hardships will pay off.  I remember going to Divisoria to buy ribbons and beads for the bracelets and headbands that I make when I was starting.
4. Start Investing - I have also discussed this on my previous posts, there are a lot of investments being offered out there where you can earn passive income.  But remember invest only on reputable banks, investment companies and etc.  As for me I have investments in Pag-ibig MP2, SSS Peso fund, GInvest and BPI, it's not a huge amount but at least I have started already.
5. Open a Savings account - That is if you still don't have one.  Please note that this is different from your Emergency fund.  For me having a savings account is like building your retirement fund also.  You can save P500.00 every pay day so in a year you will be able to save P12,000.00.  If you are 40 years old when you turn 60 you will have P240,000.00 (P12,000.00 x 20 years) exclusive of the interest that your deposit will earn from the bank.  

If you still have excess money you can get the smartphone or the branded bag or shoes that you have been meaning to get as a gift to yourself.  It is not wrong to indulge sometimes, but make sure that you have already saved something for the rainy days...

Another thing if you have extra funds - Donate to Charity.  

xo,

Chiq♥