HOW TO USE YOUR 13TH MONTH PAY WISELY

HOW TO USE YOUR 13^TH 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 13^th month pay.

As mandated by the law (P.D. 851) all employees regardless of status (temporary, casual, probationary, regular) are entitled to a 13^th 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 13^th 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 13^th 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 13^th 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 13^th 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!