Things To Do With Your 13th Month And Christmas Bonus

It’s almost the end of the year, and I’m excited about my 13th-month pay and Christmas bonus. What should I do with my extra money?

Do not spend all your money buying Christmas presents; it is better to save some of your 13th month and Christmas bonuses for your future needs. So, where should you place your hard-earned money, then?

Learn how to save and then invest your hard-earned money. Here are some of the investment options and ideas that you may consider for where to put your bonuses.

Pay Yourself First. Increase Your Emergency Funds

The main purpose of an emergency fund is not an investment; it's protection with one purpose: to protect you and your family just in case there's an emergency situation. You should set aside 3-6 months' income, but much better 1 year to 2 years (I must say this is much better due to the recent COVID-19 pandemic) to help cope with emergencies and unexpected changes.

Protect Yourself and Your Family. Get Life Insurance!

Getting life insurance will give you the maximum benefit in the future. If someone you love relies on your income, you need life insurance. Protect yourself and protect your loved ones.

Share Your Blessings

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

Pay Off Debt

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

Saving Account and Time Deposit Account

Although the interest rate on a bank savings account is low, it is still better than keeping your money in a jar or a piggy bank. A savings account is good for an emergency fund or travel fund. You may also consider a time deposit. It has a certain time frame, also called maturity, when you withdraw your money. You need to wait for the maturity period to earn interest.

Invest in Crowdfunding

It is the practice of funding a project by raising monetary contributions from a large number of people. But make sure the crowdfunding firm has legitimate registration and licenses from the Securities and Exchange Commission (SEC).​

Invest in Bonds

It is a debt investment in which an investor loans money to an entity (corporate or governmental), which borrows the funds for a defined period at a fixed interest rate.

​Invest in Pooled Funds

Affordable investments, invested in a basket of securities, professionally managed, and instantly diversified. You can choose where to invest your funds: equity funds, bond funds, balanced funds, and money market funds.

Invest in PERA (Personal Equity and Retirement Account)

It is under Republic Act No. 9505. It refers to a voluntary retirement account established by and for the exclusive use and benefit of the contributor to be invested solely in PERA investment products in the Philippines.​

Invest in Modified Pag-IBIG II (MP2)​

The MP2 program is solely a savings scheme, designed to provide Pag-IBIG I members with another savings option that would grant them a yield higher than those given under the Pag-IBIG I membership program.

Invest in Exchange-Traded Funds (ETF)

It is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, ETFs trade like common stock on a stock exchange.

Invest in Stocks

Stock is a type of security that signifies a share or ownership in a corporation. You can make money in stocks through "price appreciation and dividends."

Start a Side Business or Online Business

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 require little or no capital.

Whatever you do, work at it with all your heart,
as working for the Lord, not for men.

Colossians 3:23