10 Smart things you can do with your 13th month pay(Updated)

End of the year is coming. People are excited not only in Christmas and New year but also with their 13th month pay. If you’re an employee too, I can feel your excitement. On this short article, I will share 10 smart things you can do with your 13th month pay. Let’s go!

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10 Things you can do with your 13th month pay

1. Pay your Debt

If you have debt, maybe it’s time to pay them off and start a new year “debt free“. Debt is one of the “enemies” of financial freedom. Given that it is a bad debt. Paying them off can really ease your headache and can help you get started bringing your personal finance to the next level.

If you can’t pay it in full, pay them in whatever amount you can. This way you can allot to other important things.

2. Additional emergency fund

If you’re building your emergency fund, 13th month pay is a great source to complete them. We know that building a solid emergency fund is one of the key in financial literate individual. If you don’t have emergency fund yet, this is the great time to start.

Learn the ABC of emergency fund here.

3. Buy Insurance

Another smart thing you can do with your 13th month pay is to buy life insurance if you don’t have one yet.

Life insurance can protect your love ones in case something happen to you.

There are also different types of insurance you can choose from e.g those with investments or those with accidental and hospitalization benefit etc.

Whatever fits your goals and your budget, go for it.

You can also check the basic of life insurance on this article.

4. Invest in yourself

If you got no debt and have solid emergency fund, it is also good to invest some of your 13th month pay in yourself.

Buying books that can help you in your career or personal growth is another type of investing in yourself.

Or let’s say to attend a seminar or workshop that can help you boost your career. Or maybe a seminar that can help you start your dream business.

There are many valuable seminars out there. Choose whatever is applicable for you and grow yourself with the help of your bonus!

5. Invest in Mutual funds

Mutual fund is one of the affordable investment out there. Depending on your risk appetite and goals, you can choose different “fund” to invest in. The good thing about mutual fund is you don’t have to know everything because “professional fund managers” are there to help grow your money.

Another good thing is you can start investing with just P5,000.

6. Invest in UITF

Another smart thing you can do with your 13th month pay is to invest them in UITF or unit investment trust fund. UITF is another “pooled funds” and works like mutual fund in many terms. It’s just being manage by the bank and their fund managers.

7. Invest in Stock Market

If mutual fund and UTIF is not for you, stock market maybe be the right one. With just P5,000 you also start investing in the stock market. But just a caveat, stock market is one of the most volatile investments out there. It is important that you have at least basic knowledge before you start.

As mentioned above, maybe you can attend in a stock market seminars and start learning first. Invest in yourself first!

8. Start a Business

Another smart thing you can do with your 13th month pay is to start a business. In today’s world, you can start your own business at a very low cost. You can leverage the technology and start with very minimal capital.

Online business are easy to start and require very low capital. You can also start a blog and grow it as a business. Check here on how to start a blog and earn money online. There are so many ways.

9. Save it!

If the things suggested above doesn’t work for you, maybe you can just save your 13th month pay for now and use them when you’re ready. Sometimes, it is better to be ready and have plans before getting started.

Maybe you can set smart financial goals this coming new year and use that 13th month to reach those goals.

10. Treat yourself a little bit

You work hard. It’s been a year of hustling and doing good at your job. Time to treat yourself a little bit.

I don’t mean to splurge and waste money on non-sense things but those that can pamper yourself and inspire you to work more harder next year.

Maybe a jogging shoes to for your morning jog. That way it help you in your health journey.

Say a dinner in your favorite restaurant with your family or a full body massage at your favorite spa.

You don’t need to feel guilty when spending on these things because it’s part of giving back to yourself after working hard this year.

Whatever works for you go ahead, just make sure you get value from what you’re spending.

Those are the 10 smart things you can do with your 13th month pay. If you have something to add, please share them on the comment section below.

Budgeting and proper planning is one of the key to spend your 13th month pay wisely.

You don’t have to deprive yourself and feel guilty.

Budget and allocate your 13th month in any of the 10 things mentioned above and follow whatever works for you.

Again, just make sure it brings something valuable to yourself and to your life.

To our success and financial freedom, cheers!

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