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December is the most awaited and the most special month of
the year for the working sector. Yes, because it is the birthday of our one and
only savior Jesus Christ, it is a season of gift giving, big family reunions,
endless Christmas parties and of course the 13th month pay.
But to tell you, many Filipinos are not properly allocating
their 13th month bonuses the right way. Most of us are using it to
buy the things we want but not the
things we need.
So, what can you do with your 13th month pay, so
that it can be used fruitfully? How do financial advisers and famous
accountants budget their money?
Here are some of the
viable tips that might help you:
Pay your Debt
Since you have money that is more than what you are earning
monthly on a regular basis, I think this is the right time to set aside a
portion of your 13th month to pay on decreasing your debts. Though
it is not advisable to pay all your debts all at once, you’ll definitely feel
less burdened afterwards.
Know the Difference
of Needs and Wants
So, what do I mean by wants
and needs here?
Wants are those
things that we really want to buy but is not necessary to buy. Those are
luxurious items that we have been craving for like new smart phones, latest
gaming console (PS4)/games, a mountain bike, new car and many more.
Needs, these are
the things that we cannot live without. It is the basic necessities of human
namely: food, shelter and clothing. Yes, these are the basic necessities but it
can also be considered as a type of luxury in some scenarios. Example, if you
are a student with an allowance of 100 pesos and a packed lunch. During your
lunch break you have an option to eat your packed lunch and save your money or
eat your packed lunch and buy something that can increase your appetite, what
would you choose? For me, both are healthy options but option A is the more
budget friendly while option B is more inclined to luxury.
Invest
For as low as P5000, you can start your own investment right
away that can even grow at a minimum 7% increase annually. Let your money work
for you, don’t wait for another year or make a delay to reach your financial
freedom. Read about long term investing and let time grow your money while
adding a small amount to your initial investment little by little.
Give
Christmas is the spirit of gift giving. Why not try setting
aside a small part of your 13th month bonus on charities or do tithing. As the bible says on 2 Corinthians 9:6-7,
“The point is this: whoever sows sparingly will also reap sparingly, and
whoever sows bountifully will also reap bountifully. Each one must give as he
has decided in his heart, not reluctantly or under compulsion, for God loves a
cheerful giver.”
I hope this article helps! Brought to you by: Embassy Financial Solutions, one of the leading accounting firms in Dubai, UAE.
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