How to Spend Your 13th Month Pay Wisely

Admit it, one of the things that you look forward to during Christmas (besides the gifts and the long break!) is the bonus aka 13th month pay. Some have already even allotted it for something. How about you? What will you be spending it for?  

Aside from the long break, the gifts, and those delish dish during noche buena, what else are you excited for this holiday season? Yes, I think we can all agree, 13th month pay! If you haven’t already spent every last cent of your bonus in your mind, here’s a breakdown on how you can wisely budget it.

25% or more - Debt payment

Your goal for the end of this year is to have zero debt. So pay all your debts with your 13th month. That way, you won’t need to agonize over the interests come new year. 25% not enough to cover your debts? Get the rest from the “fun fund.”

15% - Christmas gifts

You don’t need to give expensive gifts this Christmas. But make sure to give your inaanaks, your friends, and loved ones gifts that they will really be able to use. 

25% - Savings/emergency fund

Allot a portion of your money for savings or emergency fund. A lot can happen in a year and who knows, you might need cash to pay for unforeseen needs like repairs, medicines, and medical check-ups.

20% - Investment

It is important that you allot money for investment. This will help you secure your future. Put 20 percent of your bonus to the stock market or to a mutual fund. FWD Life Philippines’ insurance products offer lifelong protection earnings through an investment fund of your choice. For as low as Php1,500 a month or Php18,000 annually, payable in five or 10 years, you will have a back-up plan for the future.

15% - "Fun fund"

After working hard the past year, you deserve a reward. Treat yourself with something that you’ve been meaning to buy—that great outfit or the gadget. But if you need more to pay off debts, the excess should come from this fund.