7 Smart Ways to Spend Your 13th Month Pay

Published: November 19, 2019 | Updated: June 29, 2020 | Posted by: Moneymax | Personal Finance

13th Month Pay Investments You Should Start This Year | Moneymax

This article was originally published on December 12, 2017 and was updated on November 19, 2019.

It’s that wonderful time of the year again, and it’s not because of the usual reasons. It’s not necessarily the Christmas season that brings joy to most Filipinos. It’s the fact that they will receive their 13th month pay and Christmas bonuses in the next few weeks. That means it’s time to buy those items you’ve been eyeing for the entire year. It’s Christmas, after all.

But it doesn’t have to be that way this year. Think about it: why waste your 13th month pay on luxuries when you can spend it on more important things like real estate properties and small businesses? Explore these 13th month pay investments and find out how you can make your holiday earnings count in more ways than one.

Smart 13th Month Pay Investments to Consider

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 13th month pay and Christmas bonus, you’ll have lots of choices on where to invest your money.

  • Mutual Funds and UITFs – You can start slow with opening either both or one of these 13th month pay 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: The Best Months to Buy Stocks

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 all begins with your 13th month pay.

Read more: 8 Great Ideas to Make Your Home Profitable

Insurance Policy

13th Month Pay Investments - car crash

Insurance is one of the most important 13th-month 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).

Read more: Starting a Family? Consider These 10 Insurance Types

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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 investments out there. It’s a smart way to grow your money while still thinking about what to prioritize in life.

Travel and Leisure

13th Month Pay Investments - woman tourist taking a photo

It’s not exactly an income-generating purchase, but saving your 13th month pay 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 great way to spend 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.

Final Thoughts

There are a lot of ways to spend your 13th-month pay and Christmas bonus, but 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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