Hey Fellow Knowledge Seekers,
I’m here once again to share with you a new money lesson to help improve your finances.
I provided some skills for you to learn to increase your income in 2024. For this post, I want to provide some tips on what you can do with your 13th month's pay.
It’s that time of the year once again when you’re scheduled to receive your 13th month's pay. A welcome bonus that people usually use for the holidays.
But is that the best use of your 13th month's pay? I would say it depends. There’s nothing wrong with using your bonus to enjoy the holidays.
After all, you also deserve to have some fun. But there are also other good uses for your 13th-month pay.
And that’s what we’ll talk about in this blog post.
1. Pay Off/Down Debt
The first thing you should do with your 13th month once you have it is to pay off or pay down your debt. This is important, especially if you have bad debt.
You’d want to get out of it as quickly as possible, so you can free up your money and use it for more important things.
If your 13th month can cover all your debt, then use it to pay it off. If not, just pay it down and then use the remaining money for other things.
2. Start/Add to Your Investment
Another thing you can do with your 13th month is to use a portion of it to start investing. If you already started investing, then consider adding to it.
You’d want your money to grow, and investing is the best way to do it. So, use a portion of your bonus to start investing or to add to the one you already have.
Even if you’re already adding to it regularly, it’s still a good practice to add more whenever you receive huge amounts of money. It will benefit your financial future if you do this.
3. Get Insurance
You can also consider using your 13th month to start getting insurance. This is something worth doing if you’re the breadwinner and don’t have any insurance yet.
It’s a good way to spend your bonus, as it ensures your family is financially protected. Consider also getting health insurance, so you’re covered when you get sick.
You don’t need to spend all of your bonus on insurance. Just use a portion to get a policy that you can pay annually and then use the rest for your enjoyment.
4. Personal Development
Personal development is another thing that you can use your 13th month on. It’s always a good investment whenever you do things that will help you grow.
Whether it’s for professional growth or personal growth, it’s going to be money well spent. You can consider enrolling in seminars or courses that will help you grow.
It doesn’t have to be for your work. You can consider learning a new skill you can use for a side hustle or for a business that you’re planning to start. Whatever it is, personal development is always a good option.
5. Enjoy the Holidays
Once you have all of the above covered, then you can use your bonus to enjoy the holidays. Use it to buy your family gifts or spend it on food that you’ll use for the festivities.
You can even use it to have a vacation if you want to. There’s nothing wrong with enjoying the bonus you have. After all, it’s what will help you recharge and be ready for the grind once again.
It’s always fun whenever you receive bonuses. It gives you that extra spending power you can use for things other than your responsibilities.
There are smart ways that you can use your 13th month bonus and we’ve discussed some of them above. Just remember don’t use it all on responsibilities. Save some for enjoyment as well.
“It’s not your salary that makes you rich, it’s your spending habits.” - Charles A. Jaffe
Keep on learning,
The Unfussy Scholar
P.S. Please share this post to your family or friends who might benefit from reading it. 🙂
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