Best Ideas to Spend Your 13th Month Pay During Pandemic

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As the year 2021 is about to end, most of us are pretty excited to receive our long-awaited bonus. This 13th-month pay goes along well with the holidays because this is the time of the year when spending surges.

However, even though thoughts of what we could buy begin to flood our minds, we must still remember the significance of prudently spending. So, we are here to guide you on the Best Ideas to Spend your 13th Month’s Pay During the Pandemic. 

Best Ideas to Spend your 13th Month Pay During Pandemic

Best Ideas to Spend your 13th Month Pay During Pandemic

No one expected the world to come to a halt these previous years due to the coronavirus, but it did, and we learned the value of being financially secure as a result. Given the new normal’s circumstances, your bonus is not something you should take for granted.

Rather than just splurging on items you do not need, learn about the various ways you may allocate your money in the short and long term to make better financial decisions.

Here are some options you may think about:

  1. Pay your pending debts. 
  2. Recover your emergency funds. 
  3. Enhance your standard of living.
  4. Avail health or life insurance.
  5. Invest and expand your money for future expenses.
  6. Make provisions for your retirement.
    1. Create your own side business, like setting up an online business.
  7. Assist people in need.
  8. Show gratitude and appreciation to family, friends, and colleagues.
  9. Give yourself a break.

Most, especially those who have regular jobs, may already know these things on how to spend their year-end pay wisely. But for those who are only newbies, we must consider that we’re still in a pandemic instead of spending all the extra money on new gadgets. Our economy is still in shambles, so we must only spend on things that matter and save the spare for it is vital. 

To begin with, here are the fundamentals of money:

 1. Clear your Debts: As a Gift of Relief.

Clear your Debts As a Gift of Relief

Paying off your bad debts first is one method to spend your windfall. These are debts that have a high-interest rate or bills that have penalty fees. If you can’t pay off these terrible debts, paying them off will prevent the interest and charges from rising too quickly.

Being debt-free also means you won’t have to worry about interest and other fees eating away at your earnings, which you could use to build an emergency fund, for example.

2. (Re)build your Emergency Savings: As a Gift of Readiness.

(Re)build your Emergency Savings As a Gift of Readiness

Consider putting money aside for an emergency fund after your debt situation is under control.

An emergency fund should be 3 to 6 months’ worth of your monthly salary so that you can start with a portion of your bonus. If you have an emergency fund but have had to use it in the past, now is an excellent time to restock it.

When you lose your job, are hospitalized for a medical issue, or face an unforeseen situation that forces you to spend more than you had budgeted for the month, an emergency fund comes in handy.

Ideally, you should retain emergency savings in a bank account. Even if you’re only intending to keep it at home, having cash on hand is unsafe. Withdrawing money from the ATM is easy. In an estimate, about 2,300 ATMs are around the country, and all are working.

3. Standard Living Enhancement: As a Gift of Progress.

Standard Living Enhancement

You can use the 13th-month bonus to buy a large purchase (or use it as a down payment) that helps you improve your lifestyle now that you are debt-free and have an emergency fund put away.

The spare cash will allow you to make large-ticket purchases that you can pay down in smaller, more manageable payments later. For example, with a specific bank credit card, you can take advantage of 0% installment promotions and discounts to get the products you desire without having to spend a lot of money.

When you use your credit card, you’re putting yourself in debt. You may, however, keep it under control if you pay your debt on time and in full to avoid greater interest and penalty penalties.

Alternatively, not all significant purchases must be material.

4. Availing Health or Life Insurance: As a Gift of Protection.

Availing Health or Life Insurance

If you’re the breadwinner, investing your 13th-month income in insurance for your family is one of the most ideal and practical things you can do.

If you’re going to get insurance, invest your hard-earned money in a company that puts your family’s best interests first. For example, AXA Philippines offers health and life insurance plans tailored to your specific financial needs and your family’s.

5. Invest: As a Gift of Growth.


Consider investing your money if you’re not worried about bad debts, developing an emergency fund, or setting away money to help safeguard yourself and your family.

The money itself will work for you in investing your money because you are putting it into a growing financial vehicle. Investments can help you achieve financial stability by providing you with a second source of income, for it comes with profits. There are various ways to invest, some accompanied by risks, and it’s up to you to decide which best suits your financial goal.

Investing may take a while, but once the return starts to build, you’ll be glad you put your money in. 

6. Make provisions for your retirement: As a Gift for your Future Self. 

Make provisions for your retirement

When you reach a particular age, you will either no longer desire to work or will be unable to work. When the inevitable comes, you must be prepared with sufficient funds to maintain your family’s standard of living. It is preferable to begin saving for retirement at a young age, and you may set aside a portion of your surplus income for your retirement accounts.

7. Create your own side business: As a Gift for Financial Stability.

Create your own side businessYou can start the side hustle you’ve always wanted with the extra cash. The most excellent time to start is now, whether launching an internet store or franchising a business. Don’t be hesitant to begin small. Once your company is up and running, work hard to expand it.


8. Assist people in need: As a Gift of Serving Others.

Assist people in needWith everything that has transpired this year, from Covid-19 to the devastating typhoons that struck the Philippines, it is a good idea to help those in need. Set aside as much of your bonus as you can to help individuals struggling to recover from the recent disasters. If you’re seeking organizations taking donations for the victims of recent typhoons, go no further, checklists on different websites. You may also look for pages or groups dedicated to assisting areas affected by the Covid-19 pandemic.

9. Show Gratitude to Family, Friends, and Colleagues: As a Gift of Appreciation.

Show Gratitude to Family, Friends, and ColleaguesGiven that it is the holiday season, now is the ideal moment to express your gratitude to your family and friends. It’s important to remember that your presents don’t have to be extravagant. With all of the offers available this holiday season, you might be able to discover meaningful gifts at a reasonable price. You make check articles such as a list of online retailers where you can shop for a gift. 

10. Give yourself a break: As a Gift for Yourself.

Give yourself a breakDon’t forget to give yourself a break. Reward yourself for putting in the effort this past year, despite the ups and downs. If there’s something you’ve been eyeing for a long, now might be the best time to acquire it, especially with the various sales going on at this time of year. You, too, have earned the right to enjoy your hard-earned cash.

Remember: The best way to get the most of your 13th-month bonus is to spend sensibly while beginning to save for the future. Your bonus for the 13th month is a result of the effort you made this year. It’s critical to take charge of how you spend your bonus since it could be a stepping stone toward a brighter future for you and those around you!

Everyone has had a challenging year in the year 2020 and even now. With the fast-approaching end of the year, let us all use the lessons we’ve learned over the years to make them more meaningful.

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