HOW TO USE YOUR 13TH MONTH PAY WISELY
The Christmas is one of the most
awaited holidays in the country not only because of all the festivities
happening around, but is also the time when employees in the Philippines
receive the 13th month pay.
As mandated by the law (P.D. 851) all
employees regardless of status (temporary, casual, probationary, regular) are
entitled to a 13th month pay as long as they have been employed for
at least a month in the calendar year.
Even before receiving your bonus, you
might be already thinking of ways you can spend it like going on a shopping
frenzy. Then you’ll just realize that your bank account has dwindled to the
amount that would not sustain you until the next pay check. So before you hit
the malls or click on the “add to shopping cart” button, here are a few
suggestions to help you spend your 13th month pay wisely.
1. Remember your Faith.
Tithes
Before rushing to the malls to buy
gifts for yourself and gifts for everyone you love, why not run first to your
respective Church and give wholeheartedly what belongs to your Creator. Read
Malachi 3:10-12 on the Bible.
2. Plan and List everything Down.
Gift-List
Most people put off Christmas
shopping until they get their 13th month pay. But before spending it
all for the gifts you’ll be giving away, do not forget to plan and list down
the people you’d like to buy presents for this holiday. It’s wise to put a
price limit in each gift you’ll be getting to keep within your budget. Look for
holiday discounts both online and offline so that you’ll have a good bargain.
3. Think Twice.
Gadgets
Maybe you’ve been itching to buy the
latest versions of smartphones or gadgets on the market even if you still have
a pretty decent model. Before you invest your bonus for a new gadgets, pause
for a moment and think twice if you really need to upgrade or not.
In an article in www.forbes.com it advised that before buying a
gadget, figure out how often you’ll use it, and for how many years. If an item
could help advance you in terms of your creative or personal life, then it will
be the right time for you to upgrade.
Don’t let yourself be a victim of the
hype that manufacturers and advertisers create to make you think that you’re
left out if you do not have their latest models.
If your gadget is still working for
you, why buy a new one?
4. Clear Debts.
Cut-credit-card
If you have any form of debt like
credit card bills, it’s wise to use your 13th month pay bonus to
trim down this debt. There’s no better way to celebrate holidays and start a
new year when you’re debt-free.
If you have zeroed all your credit
card debts, financial planner and author Chinkee Tan suggests that you stay
away from it and start buying with the cash you have on hand. Studies show that
people who use their credit card for shopping tend to buy more things. “Credit
card is the most emotionless and painless way of spending money. But once the
billing statement comes, Ouch! The pain sets in.” He says in an interview
published on-line.
5. Start Investing.
Stock-market
Put your money into work by investing
it on things that would double its amount. You can invest your 13th
month pay on time deposits, mutual funds, or buy equities or stocks. Just make
sure that you learn the ropes before investing on anything. Before you invest,
make sure you study (read books and attend seminars), understand, and consult
financial experts first to avoid high risk investments.
6. Save! Save! Save!
Piggy-bank
If your savings formula is
INCOME-EXPENDITURES=SAVINGS then you’re doing it wrong. The right thing to do
is: from your income, set aside your savings FIRST, then the difference will be
the amount you will be spending (INCOME-SAVINGS=EXPENDITURES.) You just have to
discipline yourself to spend within your means. Remember: even if you earn six
digits per month, but if you spend beyond it, then you’re poorer than the
person who has less earnings than you but save more.
It’s nice to spend your hard-earned
money this holidays, but do not forget to have a mind-set that will help secure
and you and your family’s future. Be wise in spending this holidays!