The holiday season has a lot of things that bring cheer to people such as family gatherings, gifts, and that much-awaited 13th-month pay. Before you plan on buying the latest gadget or achieve your travel goals with your bonus, you need to take note of these smart things to do with your 13th-month pay to make the most out of it.
But first, you need to know how to compute your 13th-month pay to ensure that you get the right amount from the company you work in. It’s pretty simple. Payroll Hero explains that your salary multiplied by the months that you’ve worked in that year for your present company then divide it by twelve. Moreover, any employee, regardless of designation or employment status, will receive this bonus as long as they have worked for at least a month in that year.
Increase your emergency fund threshold
It can be health related, losing your job, or getting into an accident – you never know when emergencies can happen. Emergency funds should be prepared as soon as you start working and must constantly increase as time passes by.
Doing so will allow you to have enough money to survive a few months of being out of work, pay for emergency hospital bills, and more. That’s why it would be best to set aside a certain percentage, if not all, of your bonus to increase your emergency fund threshold.
Invest in the stock market
Aside from preparing for emergencies, you should also prepare for the future. One way to do it is by investing in the stock market. Depending on your strategy, this can benefit you either short or long term.
There are several trusted financial agencies and banks out there that can help you get started. Some even offer it for as low as Php5,000. This can act as a passive income that can prepare you for an early retirement.
Start a small business
Another wise way to use your 13th-month pay this 2018 is by increasing your income by starting a small business. Sure, this requires a little bit more effort and sacrifice. But with the right idea, you might be able to build something that you can turn into your main source of income someday or, at the very least, help you with your daily expenses.
Buy an insurance plan
As previously mentioned, you never know when things could go wrong. In addition to having several investments and emergency funds in place, having an insurance plan can help you and your family benefit in the event that something happens to you (knock on wood).
There are plenty of insurance plans with all sorts of benefits that would fit various budgets, so it would be best to seek the advice of your financial advisor first before purchasing one.
Invest in yourself
Enroll in a class and learn something new. It can be a new skill like cooking, coding, photography, a new language, or anything that can help you pursue your passion or start a business. The extra funds would be the perfect opportunity for you to invest in yourself and maybe chase that dream.
Upgrade your home
Apart from the previous points, you can use your huge bonus to buy a condo at DMCI Homes. Your 13th month may not be big enough to pay it whole, but it could be enough to cover the down payment. Grab the chance to experience condo living with the extra funds that you have.
In case you already have one, you might want to upgrade your appliances to help make your life easier and more efficient. Here are a few appliances that you might want to replace:
Replace your old air conditioning unit
As technology progresses, your old air conditioning unit could be inefficient after a few years, costing you a few hundred to thousands of pesos yearly. It might be a good idea to use whatever is left from your 13th-month pay to replace it and buy an eco-friendly, efficient aircon.
Save money on an electricity efficient refrigerator
In a house, one of the biggest electricity consumers is the refrigerator. It’s on 24 hours a day, 7 days a week, and 365 days a year unless you turn it off when you leave for vacation. So why not replace it with a ref that’s even more power efficient and save yourself from paying extra money that can be used elsewhere.
Reduce electric bill with an energy-saving television
Next to the fridge will most likely be your television. There are a few models out there that are even more energy-efficient compared to the television models released a few years ago. Best to do some research to compare if your TV can still stack up to today’s technology and efficiency. If not, then now is the best time to buy a new one.
Get an all-in-one oven
Some may think that this is a little bit overboard, but owning an all-in-one oven can save you on space and from buying more appliances than you need. This can also be a source of income. How? Learn how to bake and you can earn back your initial investment and make a profit.
Buy an all-in-one printer
With an all-in-one printer, you can now print, scan, or photocopy your child’s homework or other important documents in the comfort of your own house. It doesn’t just help you save on time and money but salvages your dignity from having to use the office printer for personal stuff.
Install a security system for your house
With the holiday season here, thieves and burglars work overtime to get a big score. Protect your home and your loved ones by installing a security system. It could be a CCTV, alarm, or both. No amount of cash can replace your and your loved ones’ safety.
Have a garage made
As the Senate starts ironing out the “No garage, no car” bill, it would be best to stay ahead of the game and have a garage made in your house or buy a parking slot. If you live in a condo and still don’t have a car, it is still advised that you should buy a parking slot even if it may cost a lot. You can easily earn back your investment by renting it out to other tenants on a daily, monthly, or yearly basis until you are able to buy your own car.
These wise investments will help you increase your income, prepare for your future, and make your life more comfortable. These aren’t the usual things that one buys with their much-anticipated holiday bonus, but rest assured these are better than simply buying the latest gadget or ticking your travel goals list.