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10 Smart Ways to Spend Your 13th Month Pay
By: Bryan Bal

Admit it or not, if there is one thing that we anticipate come the BER months, it is our 13th month pay. Perhaps, you have already been planning what you will do with the money as early as September. Well, there is nothing wrong with financial planning. Our 13th month pay is our hard-earned money that we have to spend wisely too. Below are some of the ways to spend it.

1) Pay off debt

Majority of Filipinos are in debt, high-interest ones at that. With your money, pay off as much debt as you possibly can. Start with the highest interest rates and work your way towards those with the lowest interest.

2) Start an emergency fund

If you haven’t started yet, now is the perfect time to set aside the money as an emergency fund. In fact, the emergency fund should be at least three times the amount of your monthly household expenses.

3) Save for future expenses

If you are planning to make a big purchase in six month’s time, then save ahead. Otherwise you might need to obtain another loan for that expense. Not such a good idea.

4) Purchase a policy

An insurance policy is one of the most overlooked ways to protect oneself. Compare life insurance products and decide which one is the best for your current condition particularly your age and health condition.

5) Start a retirement fund

An SSS survey claims that 98% of the Filipinos cannot support themselves when they hit their retirement. Thus, they have to depend on their children or depend on charities throughout their retirement years. Don’t be a part of the statistics. Build your own retirement fund now.

6) Start a business

Even Warren Buffet, the investment guru, said that a person must not depend on a single income stream. It can be an online business wherein you only need a computer and a connection to keep it going. Whichever you choose, you can use your money to start a small business.

7) Open another savings account

Aside from your salary account, open a savings account that you will not withdraw money from. It would be better to open a non-ATM account. In this way, you won’t spend the money on impulse.

8) Put money in a time deposit

Alternatively, you may consider putting the money in a time deposit for safekeeping purposes. You cannot withdraw the money while it earns interest.

9) Buy raw materials for DIY presents

What’s good about DIY presents is you can make them in bulk. You need not spend on lavish Christmas gifts particularly those that won’t be utilized anyway or will just be stashed in the display cabinet.

10) Invest on stocks

You only need Php 5,000 to open a trading account. Most of the investment services conduct a risk profiling so you would know your risk tolerance and how you can best invest according to your profile.

True they say that you have to pay yourself first; this is exactly what you have to do after 12 months of working hard. You may consider any of the listed above so you’d truly know where your money is going and not spend it on frivolities.

For more money tips and financial management ideas, get a copy of I Wish they Taught Money in High School at all major bookstores nationwide including National Bookstore, Fully Booked and Powerbooks. You can also purchase it online via www.lifestyleupgrade101.com/shop. We deliver for FREE nationwide!


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