Reward yourself with your 13th month pay—wisely

For those among us who have received their 13th month pay or Christmas bonus, we should prioritize paying your debts or setting it aside for emergency expenses, according to a financial advisor.

In Nico Waje’s Monday report on Saksi, virtual assistant Jez Espino received her 13th month pay last November 28.

“Ginamit ko yung kalahati, supposedly sa savings, but nangyari pambayad utang, sa bills, sa renta ng bahay, sa internet at sa mga insurance,” Espino said.

(It was supposed to be for my savings but I used half of my 13th month bonus to pay my debts, bills, rent, internet, and insurance.)

Despite using a large portion of her bonus to pay bills and debts, she did not forget to treat herself.

“Bumili ng mga libro and then nakipagkita sa kaibigan, nag samgyup, nag kape. Siguro yung kalahati na dapat sa savings, nagastos ko sa pagkain. #Deserve2024,” Espino said.

(I bought books, then I went out with my friends, had samgyupsal, and bought coffee. I think half of my savings were spent on food. #Deserve2024.)

According to financial coach Diane Candido-Terrible, treating yourself should be included in maximizing one's 13th month pay.

“Reward yourself of course. Treat yourself wisely so i-consider mo as a small reward. Bakasyon o food, basta nasa budget siya para ma avoid mo yung overspending,” she said.

(Reward yourself, of course. Treat yourself wisely as a small reward. Take a vacation or eat good food as long as it is within your budget to avoid overspending.)

However, spending on leisure items or activities should be considered low when it comes to financial priorities.

“Set aside your money to pay your bills lalo na yung mga may high interest, credit cards, loans or bayad ka muna sa mga pinagkakautangan mo para next year, zero utang ka na,” Candido-Terrible said.

(Set aside your money to pay your bills, especially with high interest, credit cards, or loans, or pay your debts first so that next year, you have no debts.)

“Pwede mo hatiin into two yung bonus mo: 50% sa holiday expense mo and 50% pwede sa emergency funds mo, investment portfolio mo like sa MP2, mutual funds, UITF, stocks at saving,” she added.

(You can split your bonus into two: 50% goes to your holiday spending while the other 50% goes to your emergency funds and investment portfolios like Pag-IBIG Fund’s MP2, Unit Investment Trust Fund, stocks, and savings.)

Government employee Ella Javier, who also received her 13th month pay, intends to spend her bonus wisely.

“Siguro yung mga first years ko after graduation. Pagka-graduate mo mabibigla ka na may ganon ka kalaking pera, so ang gagawin mo ire-reward mo yung self mo,” Javier said.

“Yung portion nung 13th month, tinabi ko yung 30% to 50%. Yung iba nun nilagay ko sa digital banking,” she added.

(Maybe during the first years after I graduated, I was overwhelmed with how much money I had so I rewarded myself. But right now, I save 30% to 50% of my bonus. I also save some in a digital bank.)

Javier also said she used her 13th month pay to pay for insurance and save an amount for her parents and herself.

“Kung hindi rin tayo marunong mag budget ng income natin, hindi rin tayo makaka-ipon,”  Candido-Terrible said.

(If we do not know how to budget our income, then we will not be able to save money.)

A 13th month pay is a reward for employees for their hard work, so once it is received, do make sure to spend it wisely.—Mariel Celine Serquiña/RF, GMA Integrated News