{Adulting} How to Not Waste Your 13th-Month Pay

As the Christmas season kicks off, there’s nothing more exciting than receiving my 13th-month pay. In the past, I looked forward to this extra income as an opportunity to indulge myself, splurging on gadgets and gifts for loved ones. However, recent financial struggles have prompted me to reassess how I use this bonus.

Am I using my pay wisely? The wisest approach is to view the 13th-month pay as an opportunity rather than mere spending money. While generosity is admirable, it’s crucial to prioritize my own financial security first. This year, the best gift I can give myself is peace of mind by planning for the future.

Before fully committing to spending, it’s essential to:

  1. Plan how to use it: Allocate clear percentages for savings, debt payments, investments, and leisure. Prioritize saving at least 20% and allocating 50% to debt repayment.
  2. Pay off debts: High-interest rates can quickly accumulate, hindering financial freedom. Use this opportunity to reduce debt and alleviate future financial burdens.
  3. Save for the future: If unsure how to allocate funds, consider setting up a savings account for now and deciding on investment options later.
  4. Spend according to priority: Make well-thought-out decisions about where to allocate funds, focusing on essential needs rather than indulgences.

Ultimately, it’s essential to put money where it will serve me best in the long run. By carefully considering my financial decisions and prioritizing saving and investing, I can build a more secure future.