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

When Christmas season kicks off, nothing excites me better than my 13th month pay. In all those time, 13th month pay was something I looked forward to. I recently received my 13th month pay. In the past years, I plan ahead on the things I wanted to buy. I spend lavishly my pay treating myself new gadgets and buying gifts 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 can’t help but reminisce those years – nine to be exact.

Am I using my pay wisely? The wisest are those who take their 13th month pay as an opportunity. I haven’t 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 doesn’t have to be that way this year. Why waste my 13th month pay when I can spend it on more important things.

Before fully spending,

  1. Plan on how to use it. Set a specific percentage which will go to savings, debt payments and investments among others. Allocate at least 20% on savings and 50% on debts. It is also important to also have a portion spent on enjoying life. I worked extremely hard for a year round.
  2. Pay off debts. Remember that interest rates are sky rocketing- 3.5% a month for credit cards. Debt is one of major roadblocks toward financial freedom. It is now the best time to settle all dues. Although it is not enough to clear all the debts, but it will possibly reduce the interest.
  3. Save for now if you are still undecided. Putting up a savings account is the smart way to handle money.
  4. Spend according to priority. It should be a personal decision, a well though decision. You decide which ones are so important and should become top priority.

Put your money where you feel it would 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.

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