13th Month Pay: How To Spend It Part 1

Image from philstar

It is finally December. I am sure that you are all excited with the Christmas season. 25 days left before Christmas and we shall be counting the days to welcome 2015. I am most certain that you are so excited to get your 13^th month pay. And who wouldn’t? As a matter of fact, I already got mine last week. I was even wishing that 13^th month pay be every month. But I know it would be impossible.

Before you even touch your 13^th month pay and withdraw it from your ATM, it would be wise to know areas and avenues on what to do with it and how to spend it. Perhaps you might reason that it is the holidays hence I would spend it right away. Yes you may, but perhaps you might also consider the idea that I would be suggesting below. While there is nothing wrong to spend on those things, there are still far more valuable items that you would want to redirect your money into. Before hitting the stores to buy that most wanted gadget, you might want to use your money for long term winnings rather than short term ones.

And my first suggestion would be, pay off debt.

If you have got debt or loans be it a good one or a bad one, perhaps you might want to redirect a portion of your 13^th month to pay some of it or if not pay all of it. Paying your debts would surely take off a great burden on your end for next year. You might consider paying your credit card balances, the money you owe to others and other bills most importantly in the house like water, rent and electricity.

You may also consider pre-paying loans such as credit card balances or cash-advances. For example, if you have a monthly bill with your credit card in which you are paying monthly, why not pay months in advance.

Consider paying smaller debts first. Make sure you get to pay them in full. The process of eliminating debts is relatively easy. Start eliminating the ones with smaller amounts and work your way up. Zero in those little amounts so that you can be able to eliminate your debt one by one. It would be nice to end the year with a handful of debt so you can become debt free by 2015.

There are still many other avenues where you can use your 13^th month pay. Today, we are just discussing one out of the many. So stay tuned for the succeeding posts as the week progress. 

Remember, there are far better ways to use your 13^th month pay. And paying your debt is one. Be smart and be wise. 

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