One of the most exciting part of the Holiday Season for the employed is the 13th month pay and for the very few lucky ones, it reaches 14th, 15th and even 16th month pay! Not to mention the Christmas bonuses and other incentive that comes along the merriest year end month that is just lurking around the corner.
As Filipinos, celebrating Christmas is deeply ingrained in our culture. It shows in our going the extra mile to help build the atmosphere of festivity. From decorating our houses, Christmas gift list chronicles for the godchildren a.k.a. ina-anaks, the blasting of Jose Mari Chan medleys, the Noche Buena planning, to even completing the Misa de Gallo Mass. A whole lot and more comes with the traditional Filipino Christmas celebration.
Any celebration, no matter how joyous of an occasion, also cost a lot money. Although the 13th month pay can be used to fund our Christmas experiences, we also strongly suggest a few excellent tips to smartly handle and manage your 13th month pay and even to grow it! Read on…
1.) SET ASIDE CASH FOR EMERGENCY FUND
If you have not started one yet, perhaps now is the best time to start or if you have, now is the best time to even grow it more. Emergency funds help you prepare for unforeseen events and is a sure way to help you come up with a budget in the event of unfortunate emergencies or even job loss.
2) PAY OFF YOUR DEBTS
If you don’t have debts, Congratulations! You are one of the very lucky few who is a rockstart in money management and a hashtag blessed individual who never had to encounter any emergency to throw finances off balance. But for most, this seems hard to avoid especially in emergency cases. Hence, the importance of building your emergency fund as stated in rule number 1. Debts cost a lot in interest rates. whatever kind of debt you have, speed up the payment and make use of the small windfall to pay it off.
3) INVEST YOUR MONEY
It is common misconception that we need a whole lot of money to be able to make investments. Saving your extra money in the bank is no longer a smart choice these days because inflation rises so much faster than the interest rate and over time, you will never get to enjoy or build up any asset for long term goals such as retirement. You can talk to your trusted bank or financial consultant to know more about your options.
4) START A SMALL BUSINESS
The rising cost of living has made it a challenge for the entire household to depend on salary alone. Having a second source of income can make a difference in your finances. The holiday season is a perfect opportunity for you to start a small business. The options are endless from party food, handcrafted cards and ornaments, toys, novelty items, cosmetics, gift baskets, clothes, and a whole lot more. The possibilities to earn extra money should also be combined with efforts and perseverance on your end.
These simple tips can spell a big difference in liberating your finances. Smartly managing and handling your 13th month pay or any extra cash could be your key to financial freedom.
Do you have a few tips too? Let us know in the comment section.