How to Spend Your 13th Month Pay Wisely in 2021

how to spend your 13th month pay wisely in the phillipines 2021

Every year, you always look forward to the 13th-month pay or your supposed bonus pay. You have probably imagined where and how to spend it this year, whether it’s a new gadget, home appliance, or an out-of-town trip, since the community alert levels have become lenient for the past few months.

Of course, there’s nothing wrong with spending your hard-earned money. According to a JobStreet survey, Filipinos save and spend some of their bonus. But if you want to be moneysmart this year, you might want to check our list of how to spend your 13th month’s pay.

Why not try your best to change your old habits and use the bonus wisely? Here are some ideas on how you can spend it.

[Table of Contents]
#1 Start investing in the stock and shares
#2 Pay your credit card debt (and other personal debts)
#3 Start an online business or side hustle
#4 Invest in upskilling for career advancement
#5 Top up your emergency funds
#6 Open a high-earning savings account
#7 Invest in cryptocurrencies
#8 Add more funds to your MP2 savings account
#9 Reward yourself (and the family)
#10 Buy insurance
Final Thoughts

#1 Start investing in the stock and shares

Opening an account on an investment brokerage is super easy these days. You can sign up and get verified online. For example, at COL Financial, you can register for a free trial or sign up immediately and get verified as long as you provide the necessary IDs and documents.

You can also do it at First Metro, another investment brokerage that lets you buy and sell stocks and shares on your own. With your bonus, you can already start buying blue-chip stocks and hold them for the long term.

#2 Pay your credit card debt (and other personal debts)

Instead of paying the monthly interest every month, you may also use your bonus to pay for your credit card debt. If possible, you should pay off everything so that you can enjoy a stress-free holiday this year.

Not only that, but you also gain good credit standing from your credit card issuer. And if you still have personal debts you need to settle, don’t hesitate to contact your lender right away. Paying your bills, loans, and other informal debts by the end of this year will make your holidays and new year worry-free.

#3 Start an online business or side hustle

Another way to spend your 13th-month pay is to start a small business, which you can operate during your spare time. You will be surprised how many Filipinos earn extra cash through their side hustles, whether it’s selling on Shopee, Lazada, or even blogging.

If you have an extra space at home, you may want to use your bonus as capital to build a mini sari-sari store. There are also low-cost franchises available in the market that you can explore. All these you can do from the comfort of your own home.

#4 Invest in upskilling for career advancement

Consider investing in learning courses, as there are a ton of options out there. Your 13th-month pay is an excellent opportunity to invest in yourself and learn new skills to help you in your career.

Many online and offline courses are available, so do some research and find one that fits your needs and budget. For example, suppose you visit Udemy, a website that sells online courses. In that case, you can choose from many topics and skills you want to develop, like photography, web development, and graphic design.

Courses start from $10, and you can take as many as you like and get certified.

#5 Top up your emergency funds

Let’s not forget to save up for emergencies, too. Remember those times when you woke up one day to find out that your car had been stolen or someone close to you suddenly got hospitalized?

These could be some of the reasons why it’s essential to have at least three to six months’ worth of emergency savings in the bank. Right now is a good time since banks like ING Philippines and CIMB offer higher interest rates for saving accounts.

#6 Open a high-earning savings account

If you don’t have a savings account yet, this is the best time to open one for yourself. Choose a bank that offers high-interest rates so you can maximize your earnings. Digital banks like ING Philippines offer a 2.5% interest rate per annum, whereas CIMB gives you a 2.6% interest rate.

You also don’t have to visit the bank to open an account. You can do that right from your smartphone and get verified as long as you submit the valid identification cards and documents that the bank requires.

#7 Invest in cryptocurrencies

If the examples above don’t convince you yet, buying cryptocurrencies is another way to spend your 13th-month pay. Although the market is highly volatile, which could either give you double-digit percent gain or loss, you can always stick to the top 10 high-performing cryptocurrencies like Bitcoin, Ethereum, Cardano, to name a few.

The only downside when investing in cryptocurrencies is that you should research what coins and tokens are worth buying. And there are thousands of options out there. You can start buying Bitcoin and other cryptocurrencies directly on Coins.PH, PDAX, and P2P transactions.

#8 Add more funds to your MP2 savings account

If you have an MP2 savings account at PAG-IBIG, you can also top up your savings with your 13th-month bonus. Usually, the minimum contribution you can deposit is P500, which can be paid every month.

But did you know you can also add more money to your account within a year? Imagine if you put your money to MP2 every year, then you’d indeed have a higher return of investment after the 5-year maturity period.

#9 Reward yourself (and the family)

If you have been planning to buy this home appliance or gadget for yourself or the entire family, this could be the perfect time to buy since most shops are already offering promos and huge discounts for their year-end sale.

The 12.12 shopping festival is coming up and if you’re keen on buying a new home appliance or a gadget, always be on the lookout for the promotional codes to get up to 50% off. If you don’t want to spend on these things, you can book an out-of-town trip during the Christmas holiday or a staycation for some quality time with your family.

#10 Buy insurance

If you don’t have insurance yet, maybe this is the sign you have been waiting for – spend your 13th-month pay on life insurance. You can ask around your friends who are financial advisors at Sunlife, AXA, BPI Philam AIA, to name a few, and inquire about a quotation of basic or traditional life insurance to start the ball rolling.

Why not use your bonus to pay for the annual premium instead of monthly or quarterly, which will save you more than hundreds of pesos every month. You get a lower price of the premium if you pay it annually.

Final Thoughts

There are many things you can do on how to spend your 13th-month bonus wisely. Remember that you must focus on the areas you think you need to accomplish by the end of this year.

For some people, this might mean investing in stocks and shares or starting an online business. Others may want to think about upskilling for career advancement or topping up their emergency funds.

The key is not just knowing what to do – we don’t have the same priorities – but also taking action and making a plan. We hope our list has given you plenty of ideas and practical steps towards getting started with smart personal finances!

Let us know which of these examples above should you do first?