Smart ways to use – and save – your 13th month pay this Christmas

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et's not lie: the 13th month pay is one of the best gifts of the holidays. So let's cut to the chase: here are some tips to preserve that bonus and make sure you still have some of it left over after the Christmas season.

Write it down. It's a no-brainer, but making a list (and checking it twice) will help keep your costs down. Fitz Villafuerte, founder of Wealth Arki Consultancy, says it’s wise to write down your expected expenses to have an idea on how much to allocate from your 13th month pay. 

“My recommendation is always to write down yung ano ba yung mga expected expenses mo for the holiday season, particularly sino yung mga bibigyan mo ng regalo, ano yung plano mong ihanda, plano mo ba mag-organize ng party, anong plano niyong activities sa family sa holidays, etc. Kapag sinulat mo yung mga plano mong gastos, you can put a price and have a total,” he told GMA News Online. 

(My recommendation is always to write down your expected expenses for the holiday season, particularly those to whom you will give gifts, your planned dishes, or maybe your considering holding a party, the activities your family want to do in the holidays, etc. If you write down your planned expenses, you can put a price and have a total.) 

This also includes making a list of your planned Noche Buena and New Year’s Eve dishes.

“It helps to write down kung ano yung plano mong ihanda on both occasions. Kasi when you go to the grocery, mas mura kapag binili mo na in bulk yung mga ingredients na kailangan mo,” Villafuerte said. 

(It helps to write down your planned dishes on both occasions. Because when you go to the grocery, it will be cheaper when you buy the ingredients in bulk.) 

He added that you can also use the Noche Buena packages you will receive to save on the ingredients. 

Expect to go over. Are you still shelling out more than you expected? Villafuerte says that's still to be expected, even with a budget. Don't be frazzled if you go over! "It’s normal na ma-overspend ka. That’s why when you budget, hindi pwedeng sobrang eksakto. Kaya there’s always allowance for overspending because una, hindi natin memorize ang presyo ng mga bagay," he said.

(It's normal to overspend. That's why when you budget, don't make an exact total. That's why you should have an allowance for overspending, because you don't memorize the prices in the market.) 

So how can you save on gift giving? 

 Consider group and bulk gifts. If you're strapped for cash, you can try the route of buying a gift for your entire friend group instead of individual gifts. A bottle of liquor, a board game, or a donation to a charity in their name: find something that you know they would all appreciate. 

“For example, sa mga officemates ko, yung pinaka-close doon lima. Hindi na ako bibili ng limang regalo na isa-isa, bibili na lang ako ng regalo para doon sa buong grupo,” Villafuerte said. 

(For example, among my officemates, I'm close with five of them. So I will no longer buy a gift for each one of them, instead, I will just buy one gift for the whole group.) 

Villafuerte also suggests considering taking advantage of promos for bulk-buying items.

“Tapos you can buy bulk gifts kasi mayroon akong pitong pamangkin. Para wala na ring inggitan, same na lang yung regalo nilang pito…which will be discounted,” he added.

(You can also buy in bulk for gifts because, for example, I have seven nieces and nephews. To avoid envy with one another, I will just buy the same gift for each of them...which will be discounted when I buy them.) 

 Don't be ashamed of re-gifting. We all do it. There's no shame in re-gifting, as long as you think the person you are giving it to will actually appreciate it. 

“"If you are open to it, you can re-gift. Kasi may mga natatanggap akong mga regalo na hindi ko naman kailangan, yun na rin yung nire-regalo ko sa iba,” said Villafuerte. 

(So if you are open to it, you can re-gift. Because I have received gifts which I don't even need, so I just give them to other people.) 

 Potluck and plan meals. Make your Noche Buena meal a potluck, Villafuerte suggests.

“If it's a family affair, for example yung Noche Buena namin, mayroon akong dalawa pang kapatid, potluck na lang. Kasi mas matipid ‘yun, so we coordinate with each other,” he said.

(If it's a family affair, for example, during the Noche Buena, it's a potluck with my two siblings. It saves on money and we just coordinate with each other.) 

For Villafuerte, the holiday spirit is all about spending time and good food with your loved ones. Hence, you don’t need to feast on many dishes just to enjoy the holidays. 

“Para sa akin okay na yung isa o dalawang dishes na sobrang sarap, kaysa naman yung limang dishes na average lang…There’s no shame in just serving one dish if it’s made with love and care,” he said. 

(For me, it's okay to have one or two dishes that are very delicious. That's better than preparing five dishes that don't even taste that good...There's no shame in just serving one dish if it's made with love and care.) 

“Ang Noche Buena and Media Noche is all about spending time with your families, sharing a meal with your family.” 

 Start the New Year with a clean(er) slate. If you manage to save more of your 13th month pay this time, Villafuerte suggests setting some aside to start a savings fund or pay debts. 

“A common mistake is they need to spend all of it to celebrate the holiday season,” he said.  “Nasasayangan ako kasi [It feels wasteful]; that’s extra money that you can use to pay your debts, or even build your emergency fund, or invest for a financial goal that you’ve been working on. So you don’t have to use or spend all of it during the holiday season.” 

Villafuerte suggests assigning part of your 13th month pay to holiday spending and the rest for other goals or savings. “Think of it as free money that comes to you once a year, so might as well take full advantage of it,” he added. 

One use of the money is to pay off a debt. A nicely symbolic way to start the New Year would be to do it with a clean slate, at least in one area.

“Paying off your debts is the best way to have a clean slate for the new year,” Villaguerte said. “Kung hindi kayang bayaran ng 13th month pay and Christmas bonus yung lahat ng utang, at the very least, make a large payment para next year mas manageable siya. You’ll feel like getting a fresh start [because] it will be now easier for you to pay your remaining debt for next year.” 

(If you can't pay all your debts with your 13th month pay and Christmas bonus, at the very least make a payment so the succeeding payments will be more manageable.)

These are all suggestions, of course. Your 13th month pay is your well-earned money and you will know best how to spend it. Merry Christmas and Happy New Year! — BM, GMA Integrated News