The Smartest Ways to Spend Your 13th Month Pay

​You shouldn’t squander your 13th month bonus. How, why, and where you spend it may determine your financial situation for the coming year.

So, where to place your hard-earned money then? Learn how to save and then invest your hard-earned money. Consider the following ideas to make the most out of your big bucks.​

Build Up Your Emergency Fund
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The main purpose of emergency fund is not an investment, it's a protection with one purpose - to protect you and your family just in case there's an emergency situation.​ The rule of thumb is to have at least 3 to 6 months (much better up to 1 year) income to help cope with emergencies and unexpected changes.​

Pay Your Debts​
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Control your debt or your debt will control you.  A lot of people go in debt just to keep up with those who already are. Change your mindset about money. Save money and money will save you.

The rule of thumb is to start on the one with the highest interest rate then work your way down until you pay off everything. Most likely, your credit card will have the highest rate. Avoid paying minimum or partial payments as this will incur high cost.

Invest In Paper Assets  Like Stocks, Pooled Funds (UITF & Mutual Funds)

Stock is a type of security that signifies share/ownership in a corporation. You can make money in stocks by "Price Appreciation and Dividends."

Pooled Funds are affordable investments, invested in a basket of securities, professionally managed and instant diversified. You can choose where to invest your funds: Equity Funds, Bond Funds, Balanced Funds and Money Market Funds.

Get Life Insurance
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There is almost no downside and lots of upside in getting life insurance. It’s the safety net for both you and your family. Getting life insurance will give you the maximum benefit in future. If someone you love relies on your income, you need a life insurance. Protect yourself and protect your loved ones.

Boost Your Savings​
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Although the interest rate from a bank savings account is low, it is still better than keeping your money on a Jar or a Piggy Bank. Savings Account is good for emergency fund or travel fund. You may also consider Time Deposit. It has a certain time frame also called maturity when you withdraw your money. You need to wait the maturity period to earn the interest.​

Start a Side Business or Online Business
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You can start a side business or an online business to make some extra money for you and your family. There are lots of business ideas that requires little or no capital.

Plan For Retirement
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Build your emancipation fund is for your retirement. Others call this the freedom fund, because if you're faithful in building this fund, you'll become financially free. 

When do you know that you're financially free? Simple, can you stop working today and live the same lifestyle? If you can, you're financially free.

Share Your Blessings
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God blesses you so that you can bless others. Be a blessing!

Invest In Yourself
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Buy books, attend seminars or webinars, enroll in any course you want. Grow your wealth by growing yourself. Invest in yourself!

Reward Yourself
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God wants you to enjoy life. The Bible says, God "richly provides us with everything for our enjoyment" (1 Timothy 6:17). It could be eating in a favorite restaurant or going on a vacation.

Rewarding yourself regularly is fantastic motivation to earn more.