8 Ways To Spend Your 13th Month Bonus Wisely

As we approach the end of 2020, your long awaited bonus is finally here! This is the time of the year that spending increases because of people’s 13th month bonuses along with all that comes with the holidays. And though the thoughts of all the things we could buy start to fill our minds, we must remember the importance of spending this bonus wisely.

No one anticipated the world taking a long pause this year from the virus, but with this, we discovered the importance of being financially stable. Given all the circumstances of this new normal, your bonus isn’t something you should take for granted. Instead of just splurging on things you don’t necessarily need, understand the different ways you can allocate your money for both the short and long term to make better financial decisions.

Here are 8 ways to spend your 13th month pay wisely!

Before anything, settle your unpaid debts

Wouldn’t you want to start the year 2021 free of debt? With the extra income, now is the perfect time to pay off your debts, or at least reduce them. Without debt, it is much easier to keep track of your money. List down all your debts and determine the priority of each. Start by paying off the most urgent ones. Nothing is more liberating than starting the year debt-free and knowing that your money is actually yours!

Build on your emergency funds

With all our individual obligations, it could be tough to set aside some money, but it is absolutely necessary. Your emergency fund will come in handy when faced with unexpected challenges such as the current pandemic. The common rule for saving for your rainy-day fund is to have at least 3 months’ worth of your usual expenses set aside. Though you don’t need the whole amount right away, it is best to build on it as soon as possible.

Save for your retirement.

There will come a time when you reach a certain age that you either don’t want to work or can’t work anymore. When this time comes, you need to be ready with money to continue to support yours and your family’s lifestyle. It is ideal to start planning your retirement at an early age, and with the extra income, you could set aside a portion for your retirement funds. This is something that your future self would be grateful for.


One of the best things you can do for yourself is to invest your money. By investing, your money will do the work for you. Investments can help build on your financial stability by creating another source of income. There are several ways to invest and it’s up to you to decide which would best fit your financial goals. It may take some time, but once the return begins to grow, you’ll be thankful for your investment.

Start your own side hustle

This could be the opportunity that you’ve been waiting for. With the extra capital, you can start the side hustle you’ve always wanted. Whether it be opening an online shop or franchising an establishment, the best time to start is today. Don’t be afraid to start small. Once your business is established, work hard to build from there.

Help those in need

With all that has happened this year, from COVID-19 to the strong typhoons that hit the Philippines, it is always a good idea to give back to those in need. Set aside any amount you can from your bonus to share with those that are having difficulties recovering from all the calamities. If you are looking for organizations that are accepting donations for the victims of the recent typhoons, check out our list here! For organizations dedicated to help communities affected by the COVD crisis, check out this article!

Show gratitude to your family, friends, and coworkers.

Given that it’s the holiday season, this is the time where you can show your gratitude to your loved ones. Remember that your gifts don’t have to be expensive. With all the deals you can find this holiday season, you could find thoughtful gifts at an affordable price. If you need help looking for a gift, check out our latest article on 8 online stores you can shop from!

Treat yourself!

Don’t forget to treat yourself. Reward yourself with something for working hard this past year through all the ups and downs. If there is something that you’ve had your eye on for a while, now could be the time to get it, especially with the different sales at this time of the year. You deserve to enjoy your hard earned money as well.

In the end, the best way to maximize your 13th month bonus is to spend wisely while you start building for the future. Your 13th month bonus is a result of the work you put in this year. It is important to take initiative in planning how you spend your bonus as this could be used as a stepping stone towards creating a brighter future for yourself and the people around you! 

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