It's December! And when this time of the year comes we are
always filled with glee because of the 13th month or cash bonuses we get. Or
not?
13th month is an extra salary given to employees
by their employers. In the Philippine setting, this is mandated by law. This is
normally equivalent to a month’s pay. Hence, if you are earning 10,000 a month,
you would also be getting the same amount. This excludes all allowances,
benefits and bonuses. Imagine getting a whole month of pay without doing
anything. See that is heaven.
However, in spite of the added month salary, why is it that
we can’t hold it for long? Assess right now, where did you spend your 13th
month last year? Did you use it all up? How did you feel after spending it? Did
you welcome the New Year with no money at all? Then don’t let this happen to
you this year. We are going to re-manage your 13th month pay
spending with a wiser approach. Stay away from sale and temptations. Buckle up
with a lot of “NO” because you will need it so.
Tip 1: Pay debts. Use a portion of your 13th
month to pay debts. If you have credit card debts, loan debts, bank debts and
more, allocate a big bulk of the amount to this. You don’t need to zero out the
credit, though that would be nicer, however at least you get to decrease the
amount. Aside from that, you save yourself from interest rates that can
certainly make you broke. Plus, lesser credit is a good way to start another
year.
Tip 2: Save. Financial advisers always say to save, save,
save. This holds true for your 13th month pay. Allocate a portion of
it to build up your savings fund or emergency fund. An emergency fund is an allocation
that is good for three to six months of your expenses. In case you will lose
your job or something bad happens to you, God forbid, you will still have money
to cover your expenditures. If you are planning to save up your 13th
month, I suggest stashing out 10% to 30% to beef up your savings fund or
emergency fund.
Tip 3: Invest. When I say investment this does not mean
getting a new flat screen TV or a new gadget. I am referring to make the money
work for you. Investing is making your money earn. To date, there are many
great investments to start. You can get a trust fund and mutual funds offered
by banks. You may also use the money to start up your business too.
Tip 4: Give. It is the season of sharing and giving after
all so might as well stash a few percent to give to your family and friends. If
you feel generous, you may also share your money to charity. Perhaps a few portions
would go to help our dear Yolanda survivors to brighten up their holidays even just
a little.