It is the most wonderful time of the year! This also means that the 13th-month pay of employees is coming! While there are a lot of promotional sales in malls and online stores, we might want to sit down for a moment and think about where we want to spend it smartly.
Here are some of those smart ways to spend your 13th-month pay.
Start an Online Store
Putting up an online store is easy nowadays. With few clicks on social media, you can now sell goods and offer your services. Clothes, food, plants, and even bed sheets are sold online, and they are in demand! For example, in an online retail clothing shop, with a minimum starting capital of P5,000, you can buy bulk clothes and resell them with a potential income of up to P20,000-P30,000.
Invest for Personal Growth
Whether it is to develop oneself related to your career or in pursuing your talent or passion, you can never go wrong in investing in yourself. You can spend your 13th-month pay to enroll in a specific course to enhance your expertise. You can also purchase some books to enrich your knowledge or join a workshop to learn more about your passion. Whichever you choose, it will surely expand your horizon and give you more opportunities to increase your income.
Put it on a Time Deposit
If you are not ready to take a riskier path, you can always make your money grow in a time deposit. Interest rates now range from 1.75% to 3.9%. It might not increase your money much, but investing in a time deposit is less work, and it will provide sure income.
Allocate to your savings and emergency fund
If you do not have a savings account yet, your 13th-month pay can serve as your initial savings and emergency fund. It will support your unexpected and unforeseen events such as sudden illness, repairing gadgets, or even jobless condition.
Tip: You don’t need to put your entire 13th-month pay in an emergency account. You can start by investing a certain amount of this bonus. It will help you to make a habit of saving.
Pay your Debts
If you have debts like unpaid balance in your credit card or personal loan, it will be an ideal decision if you make payment for debts using your 13th-month pay. It will help you save expenses on the interest. It will also allow you some relief from the reduction of your debts—a perfect way to start a new year.
Own your dream home or rental business
One of the best 13th-month pay investments out there is buying your first real estate property. Sure, your bonus would not cover all the expenses, but it is enough to pay the down payment for a vacant lot or house and lot for sale. There are developers like Camella that offer longer installment down payment schemes, and banks are offering lower interest rates. Imagine owning a property under your name.
If you do not intend to live in it, you can start a rental business using this property. As early as now, a part of your salary should go to the funding of your property. It can begin with your 13th-month pay.
There are many options on how you will spend your 13th-month pay or Christmas bonus. But, with all the things that happened this year, we should be smart about it. Take this as an opportunity to go beyond what you want. Instead, focus on the essential things in life rather than satisfying your shopping urges.