Bucks and Bliss: Tactics for a Joyful 13th Month

Ah, the glorious 13th month—a time when an employee’s newly-rebonded hair is sleeker than Santa's sleigh ride, braces are more dazzling than Rudolph's nose, and eyelashes are longer than your holiday shopping list! It's that magical time of year when wallets get a surprise boost, and suddenly, the world is your oyster.

We will explore the art of treating yourself because, let’s face it, you’ve earned it. This article advocates a balanced approach, encouraging both self-improvement and judicious financial management. Alongside self-love, let’s sprinkle some wisdom on responsibility, investing in your future, and if you find yourself capable, why not share the festive joy? Here are some practical suggestions on making informed choices with your 13th-month pay. These ideas aim to help you maximize the benefits of this additional income.

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1.?????? Create a spending plan to map out how you'll use your extra funds.?Feel free to pick a budgeting app or simply go for an easy Excel sheet. This step is key in making smart choices with your 13th-month pay. It ensures every peso has a purpose, guiding you to spend wisely and get the most out of your bonus.

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2.?????? Accelerate the timeline of repaying your debts.?Investing in your mental well-being ranks high among the best gifts you can give yourself this holiday season. Picture this: a debt-free existence where your financial reputation shines, and your credit score is a beacon of trustworthiness. Prioritize settling debts with higher interest rates, securing not just your financial future but also a peace of mind that’s priceless.

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3.?????? Initiate the establishment of your emergency fund.?Throughout the pandemic, a notable observation has been the absence of emergency funds among a significant number of employees when companies either closed or reduced working days. From the experiences shared by colleagues, two key sentiments emerged. Firstly, those with emergency funds expressed gratitude for having a financial safety net. Conversely, those without such funds found it difficult to source when needed, often relying on government aid or "ayuda." Emergency situations can affect anyone, and just as we prioritize physical health, taking care of our financial well-being becomes crucial. There are going to be instances wherein the only person you can rely on is you.

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4.?????? Passive income and beginner-friendly investments.?Imagine having a money garden: you plant the financial seeds once, and then you can relax while the cash crops grow on their own. The lazy genius of income stream –?that’s what passive income is.??In its absence though, your dependence would solely rest on active income – a source vulnerable to rapid depletion during a crisis. In the Philippines, you can start investing in UITFs for as low as PHP 1,000. Other options will be Mutual Funds mostly offered by banks, PAG-IBIG MP2 with which you can earn up to 7% interest per year, and Dividend Earning Stocks among others.

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5.?????? Protect yourself and loved ones.?One of the most important and overlooked investments is insurance.?Whether it's safeguarding your health, shielding your home, or ensuring your vehicle, insurance plays the role of a financial superhero, protecting your assets and offering peace of mind in a world of uncertainties. It's not just a policy; it's a shield against potential financial catastrophes, ensuring that when life throws a plot twist, you have a backup script to keep the show going without breaking the bank.

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6.?????? Build a retirement fund; you're never too young to start.?A retirement fund is a long-term investment that allows you to save for retirement. It's a bold step you can take to secure your future that requires commitment. You can open a specific account to save or open a Personal Equity Retirement Account?(PERA)?with a bank that offers it. Think of it as your personal money time machine, guaranteeing you'll be sipping on coconut water by the beach, ensuring you're more comfortable in your later years.

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7.?????? Set aside a fund for travel and vacation.?In our team, I advocate for the practice of taking annual vacations. I've noticed a positive correlation between the well-being and success of employees who prioritize regular breaks. Personally, international travel serves as a rejuvenating experience for me, offering a refreshed mindset and the opportunity to strategize from a different perspective. Moreover, it serves as motivation to enhance my effort to ensure I can support travel to the next country of destination. Setting aside funds for leisure is not just a personal indulgence but a strategic investment in sustained productivity and overall well-being. Periodic rest is a catalyst for long-term success.

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8.?????? Treat yourself.?The phrase "Deserve ko 'to" is often humorously used by those who indulge in shopping sprees on Shopee or frequent Starbucks visits. While it may carry a negative connotation, it essentially reflects the idea that occasional treats are justified after a year of hard work. Embracing this mindset encourages us to reject a life of constant self-denial, allowing us to spend on things that bring joy and fulfillment. Prioritizing self-care, such as investing in dental and hair care, contributes to both physical and mental well-being, boosting confidence and energy levels for better job performance.

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9.?????? Share your blessings to family and community.?To give is to gain.? In the digital era, where familial connections are often mediated through social media, the opportunity for in-person quality time has sadly diminished. Treating your family to a simple meal and dedicating time to spend with them is important and serves as deliberate and meaningful effort to bridge the gap created by digital interactions. It is also worth asking yourself: when was the last time you extended a helping hand? Recall the feeling it brought – a distinct satisfaction, a unique happiness that accompanies the act of sharing. If you have the capacity to do so this Christmas, don't deny yourself the joy of that feeling.

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Closing Insights

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In making a decision on how to spend your 13th?month bonus, focus on what truly matters and sparks joy. It’s not mandatory to funnel the entire amount for investments but rather let the available funds dictate your choices. While securing the future is crucial, striking a balance between planning for tomorrow and living your life in the present is equally important.

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