Christmas is a time of the year when we need to buy presents for our loved ones. With so many obligations and so little time, it can be hard to find the perfect gift. 

Before the year ends, employees receive an additional full-month pay or a 13th-month pay. Some employers give extra bonuses to their loyal and outstanding staff. There is no wonder that you will see a lot of stores enticing the shoppers with their sale promos- because, yes, they have money to spend.

However, have you paused for a while and thought of how to wisely spend your money?

An oldie but a goodie, this principle is as true now as it was decades ago. The idea is that you should put money into savings before you spend it on anything else. This way, if something unforeseen happens and you need to use your savings, you’ll have plenty of cash available.

The principle of paying yourself first means that no matter what the circumstances are, even if they are dire and life-changing, the first thing that needs to be done is to pay yourself first. This will ensure that at least one person in your family has some resources available to them when they need them most.

Here are 5 simple ways to spend your 13th month’s pay:

Pay off debts

Debt is a huge financial burden and it can really take a toll on your mental health. It can make you feel like you’re never going to get out of the hole that you’ve dug for yourself. The good news is that there are some ways to get out of debt and have a debt-free future.

You can start by paying off your debts, which will give you the chance to have a worry-free future. You might be thinking that this isn’t an option for you because it would take too long or it would cost too much money, but there are some ways to do it without spending all your money or taking years off your life.

But, when you are in a financial crunch, you might be tempted to spend all your 13th month just to settle all of your debts. Talk to your debtor or creditor. They might be okay that you will pay a portion of your debt. This way, it will be easier for you, and still have money to spend on your Noche Buena.

Start investing

No debt and want to diversify your income? 

Investing in the Philippines has become accessible and easy. You can start by asking your HR department about how to invest in PAG-IBIG MP2 and SSS Peso Fund. 

When you have time, you can reach out to a financial adviser and inquire about how to build your retirement and emergency fund.

Other investments you can do depending on your risk appetite:

• Mutual funds and Unit Investment Trust Funds (UITFs)
• Real estate
• Stocks
• Insurance
• Life Plan or memorial plan

Invest in personal growth

The world of work is changing and with it, the skill sets needed to stay competitive. Investing in yourself and your career by taking up new courses is a great way to stay ahead of the curve.

It is never too late to upskill yourself and pursue your career goals. With the help of online courses, you can now enroll in any course that you want, anytime and anywhere. Here are some benefits of upskilling:

– You will be more knowledgeable about your industry.

– You will be able to provide better services to your clients.

– You will have a competitive advantage over other freelancers in the market.

– Your resume will look more professional with the addition of a new skill on it.

Pamper yourself

Spending time on yourself is not selfish, it’s necessary. And you deserve to treat yourself to something nice every now and then.

It might be a me-time at the spa, a staycation or even buying something you want but can’t afford. Treating yourself is not a bad thing and should be done as often as possible.

Give back

The Christmas season is a time for giving and sharing. It’s the season of hope, peace, and joy. It’s also a time when people are more receptive to hearing about your blessings.

This is why you should take every opportunity to share your blessings with others, even more so during the Christmas season.

Your money. Your choice. Your thoughts?

The 13th month’s pay is a great opportunity to give yourself a treat or to do something nice for someone else. It’s also a good time to think about your financial situation and plan for the future.

While most of us are busy trying to make ends meet, we often forget that the future is what matters the most. We need to focus on things that will secure our future rather than satisfying our shopping urges that bring momentary happiness.

You should not let yourself get carried away with shopping so much because it can lead to serious financial consequences. Start today and be wiser with your finances- for yourself, and for your family’s future.