Nothing excites an employee than receiving their 13th month pay. Even before they receive it, there are tons of things that are already running on their mind to where they will spend it.
Are you going to pay off your debt? Treat yourself with new gadgets and luxury items? Buy gifts for your families and friends?
Don’t be a one-day millionaire. Spend your hard earned money on the practical things. Here are some wisest tips on how to burn your 13th month pay.
Fund your dream vacation
Dreaming of backpacking Asian cities? Are you planning to see the famous European landmarks, such as Eiffel Tower and Sagrada Familia? Make that dream come true by giving a portion of your 13th month to your travel fund.
Allot for car down payment
Planning to buy your first car? Allot some of your 13th month pay to fund the down payment for your car. Most of the car dealers and companies today offer low down payment and affordable payment terms.
Start your emergency fund
Don’t have an emergency fund yet? It is the best time to start one. Emergency fund serves as a safety net during unfortunate events, such as hospital emergencies, job loss, or debt.
You do not need to have a big emergency fund right away. You can start small. Allot a part of your 13th month to your emergency fund. About 40% to 50% will do. Then, add small amount every month.
A fully emergency fund should be 3 to 6 months of your monthly expenses.
One of the wisest things to purchase with your 13th month is a life insurance. This will be a good step to protect your financial future. Buying a life insurance product will allow you to protect yourself or your family against unforeseen circumstances, such as critical illness, disabilities, accidents, or even death.
To maximize your money, opt for an insurance product with an investment component. This way, you can have the best of both worlds since you already have a life protection plus you can grow your money as well.
Invest in mutual fund or stock market
Thinking about having a passive income? Investing in a mutual fund or in the stock market might be a sensible choice.
Before investing, do some research to know what field you are delving in. Know your risk appetite and determine your investment horizon as well. This way, you can choose which fund you be investing in.
Start a side hustle
Apart from investing, you can also opt to start a side hustle. Turn your hobbies into business. Do you love to bake? Why not start baking cookies and other pastries and sell to your friends and colleagues?
You can also put up a small online shop and sell quirky items. Maximize social media by setting up a Facebook or Instagram business account.
Pay your debt
If you have any debt that needs to be settle, now is the time to settle that amount. You do not need to spend your entire bonus to pay your debt, but you can reduce the amount by allotting some of your 13th month pay.