Thirteen Guiltless Ways to Spend your 13th-Month Pay



Every year many employees and workers happily anticipate finally receiving their 13th-month pay. December is that month of the year when one feels an increase in spending power. But, the thing is, many regular employees are clueless as to how to properly spend the money in a way that feels guiltless. Here are 13 ways you can maximize your bonus guilt-free and without the disappointment.

Pay all your debts—There are lots of corporate employees, especially those in urban places, who own a credit card, but are tempted to have not just one, but four other cards, as well. Once you receive your bonus, make sure you pay all your debts.

Create a rainy-days fund—Murphy’s Law says whosoever does not have a rainy-day fund always finds the rain coming. In order to prepare for those untimely problems, a simple rainy-day account must be established equivalent to six months of your monthly expenses.

Open a savings account—Sad to say, some employees only own a payroll account and nothing more aside from that. Open a savings account, but you need to maintain it. The main purpose is for this money to be allocated for the things that really matter to you.

Buy books and attend financial seminars—Whether  you earn a generous pay package, you should continue to increase your financial IQ to help manage your financial apprehensions. Those things that you don’t know, you will hate and, when you are not open to learn new things, you are pushing all your
dreams backward.

Get a life insurance—There is an old joke that says, “The only reason you don’t need life insurance is when no one is going to cry when you die”. Indeed, you need one since you have a family that needs to be protected in case you die unexpectedly, is gravely ill or you figured in an accident.

Invest for your future—You won’t be a millennial traveler forever if you keep draining your life savings. If you clearly cannot afford a particular lifestyle ‘till you are 60 years old, then you better start

Buy a business or a franchise—Franchises nowadays have a ready-made system. Although there’s always a risk in every business and there are no guarantees to success, it pays to invest to ensure a regular cash flow.

Enroll in short courses—Short courses are popular nowadays. Learning can be online or done in real classrooms, but you will surely learn something new. The money you invest can give you that edge, especially if it adds a title to your name.

Have a health insurance—Ninety percent of the millennials I interviewed would like to retire at ages 45 to 55 years old. They don’t see themselves working ‘till they’re 60 and many would love to have a second career as entrepreneurs. If you have that kind of perspective, it would be better to buy yourself another health card while the premium is still low compared to getting it when you finally retire.

Hire a financial advisor—When you hire a registered financial advisor, you will not only get his expertise, but also his experience. You need to capitalize on other people’s talent to manage the risks involved and to minimize the mistakes you may encounter.

Give gifts to your loved ones—December is a season for giving and you can exercise compassion by finding a charity, a local church or sponsor a nonprofit organization to help make their projects a reality.

Invest in social enterprises—I’m a big follower of social entrepreneurs today. They are customer driven and help uplift certain communities in the country at the same time. Invest in a social start-up.

Use it for a vacation fund—There’s a study in the United States that says traveling helps us grow and open our minds to many different perspectives. But do not invest all your bonus money on a vacation fund since this will also be another excuse if you haven’t prepared yourself for the rainy days.


david-isaiah-angwayDavid Isaiah Angway is a Registered Financial Planner of RFP Philippines. To learn more about personal financial planning, attend the 59th batch of RFP program in 2017. For more details, inquire at or text at <name><RFP> at 0917-9689774



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