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

As Christmas season kicks off, nothing better excites me than my 13th-month pay. The 13th-month pay is something that I was looking forward to. I recently received my 13th-month pay. In the past years, I plan on the things I wanted to buy. I spend my pay lavishly treating myself with new gadgets and buying presents for family, godchildren, and friends. I know I am not supposed to spend all of it, but that is the only time I can take advantage without sacrificing other obligations. I cannot help but reminisce those years.

Am I using my pay wisely? The wisest are the ones who take their 13th-month pay as a chance. I have not thought of that until recently that I struggle financially. My savings were not enough to save me. I am a generous giver, but this time I need to help my self first. The best gift I can give myself is a peace of mind knowing that I plan to secure my future.

It is very tempting to spend, especially during this holiday season. But it does not have to be that way this year. Why waste my 13th-month pay if I can spend it on more important things.

Before fully spending,

Plan on how to use it.

Set a clear percentage for savings, debt payments, and investments, among others. Allocate at least 20% on savings and 50% on debt. It is also necessary to have a portion spent on leisure;  we have worked extremely hard for a year-round.

Pay off debts.

Remember that interest rates are skyrocketing- 3.5% a month for credit cards. Debt is one of the major roadblocks to financial freedom. It is now the best time to settle all dues. Although it is not enough to clear up all the debts, it may reduce the interest.

Save for now if you are still undecided.

The smart way to manage money is to set up a savings account and decide what to do later.

Spend according to priority.

It should be a personal decision, a well thought decision. You decide which ones are so important and should become a top priority.

Put your money where you feel it is going to serve you best. Think carefully and decide on what to do with it. Make sure not to splurge. What you do with your money defines you in the future. Remember to always save and invest for the future.