7 Smart Investments for Your 13th Month Pay

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Published on: November 24, 2020 Last updated: December 22, 2020

Where to Invest Your 13th Month Pay | Moneymax

It’s that wonderful time of the year again, and it’s because most employees will receive their 13th month pay and Christmas bonuses in the next few weeks. Better not waste it on luxuries when you can spend it on more important things like real estate properties and small businesses. Want to know where to invest your 13th month pay? Explore these investment options.

Where to Invest Your 13th Month Pay

Financial Investments

13th Month Pay Investments - stock market

Did you know that you don’t necessarily need to work everyday to become richer than you are now? Financial investments like stocks and mutual funds are great sources of passive income, provided that you fund them on a regular basis. With your holiday earnings, you’ll have lots of choices on where to invest your 13th month pay.

  • Mutual Funds and UITFs – You can start slow with opening either both or one of these investments, especially if you’re new to the game. You can start for as low as PHP 1,000 and expect minimal risks.
  • Stock Investments – If you want a more complicated type of investment, try your luck on stocks. It’s a high-risk, high-reward type of investment so make sure you know how the stock market works.
  • Pag-IBIG/SSS Investments – You can also choose to invest your money on government-regulated funds to ensure your money’s growth. You can start for as low as PHP 500.

Read More: Investments for Beginners: How to Find the Right Investment for You

Business Capital

13th Month Pay Investments - cakes and pastry business

You can also use your 13th month pay to fund your own small business. You’ve probably played with the idea before, but you lacked the capital so you didn’t do anything with it. Now’s the right time to do so. There are a lot of business ideas out there that requires low capital—all you have to do is strategize. Here are some great examples.

  • Piso Wi-Fi Vending Machine – Instead of starting a computer shop, invest on a piso Wi-Fi vending machine. It’s more cost-effective and more manageable. You need to invest on a good broadband plan and a powerful Wi-Fi router to get you started.
  • Cake and Pastry Business – It’s a cliché business at this point, but there’s a reason why it’s in-demand. For starters, it only takes PHP 3,000 – PHP 5,000 to start, provided you already have the necessary equipment. Also, who doesn’t love pastries?
  • Bills Payment Business – You know what else Filipinos need? More payment centers for their bills. Grab this opportunity to start your own by investing on a point-of-sale[1] device. You can start for as low as PHP 5,000.

Real Estate Investment

13th Month Pay Investments - key to the house

If managing a business isn’t your cup of tea, how about investing in your future home? One of the best 13th month pay investments out there is buying your first real estate property. Sure, your bonus won’t cover all the expenses, but it should be enough to pay the downpayment for a vacant lot or a rent-to-own condominium. Imagine owning a property under your name.

Even if you’re not planning to live in it, you can choose to lease it to tenants or business owners and earn money from rental payments. You can do a lot with your own real estate property, but you can’t own one unless you start investing today. 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.

Read more: Investments in the Philippines You Can Start with Just P1,000

Insurance Policy

13th Month Pay Investments - car crash

Insurance is one of the most important investments you can afford. It’s often overlooked by most Filipinos since it’s not an immediate need, but the universe is random and unfair—you’ll never know when tragedy will strike. Thanks to your 13th month pay, you can now afford the following types of insurance in the Philippines.

  • Life Insurance – You can either insure yourself or your loved ones to prevent death from sending the surviving family members into a state of bankruptcy. It’s a dreadful thing to purchase, but it is a necessary financial product to consider.
  • Car Insurance – Your car also needs some insurance so you can shoulder the expenses in the event of a car accident. Even if you’re confident with your driving skills, some drivers unfortunately aren’t.
  • Home Insurance – This provides financial protection against loss and damage to a residential property, either by human error or natural disasters[2].

Protect your car and your loved ones with Moneymax!

Savings and Emergency Fund

13th Month Pay Investments - savings and money growth

What if you don’t want to spend your 13th month pay on anything? That’s fine, you can just start building your savings and your emergency fund. There’s really no excuse to not have both in your bank account. If you think about it, this is one of the best 13th month pay investments out there. It’s a smart way to grow your money while still thinking about what to prioritize in life.

Read more: Retirement Fund 101: Plan, Save and Invest for Early Retirement

Travel and Leisure

13th Month Pay Investments - woman tourist taking a photo

Where to invest your 13th month pay? To yourself, of course! It’s not exactly an income-generating purchase, but saving for your dream travel should still count as a worthwhile investment. Out of all the 13th month pay investments on this list, traveling will probably fulfill you the most. Explore the world, experience new things, and create new memories that you can’t buy anywhere else.

To make things even better, why not include your family on your travel plans? Head down to various destinations this holiday season and spend Christmas with the people you love the most. Not only are you sharing your blessings with your family, but you’ll also strengthen your relationship with them. Isn’t that as good as investing for the future?

Family Matters

13th Month Pay Investments - old parents holding hands

And speaking of family, another option on where to invest your 13th month pay is to tend to your family’s needs. Instead of spoiling yourself, why not spoil your parents by giving them things they either want or need?

If they need urgent medical care, spare no expense in paying for their routine check-ups and medicine. If your younger siblings want to go shopping, now’s the perfect time to be Santa Claus of the family. Again, that’s as good as investing in the future.

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Final Thoughts

There are a lot of options on where to invest your 13th month pay and Christmas bonus. The hope is that you’ll choose to focus on important things in life rather than satisfying your shopping urges. You can just save enough money to buy the things you want next year. Take this salary boost as an opportunity to go beyond what you want and become a better person doing it.

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With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.