You know it’s Christmas when the much-anticipated 13th month (and other year-end bonuses, if you’re lucky) arrives. It’s even more exciting now that minimum-wage earners in Metro Manila will receive an additional ₱25, making the minimum salary in the non-agriculture sector from ₱512 to ₱537 as reported by Business Mirror.

Although there’s the announcement of the ₱25 increase, it raised different reactions from labor groups with some calling it “too small.” Some consider this increase inadequate considering the effects of the unchanged 6.7% inflation.

But as you wait for your 13th-month pay to be credited on your payroll account, we at GoBear would love to share these ideas on how you can preserve (and even grow!) that hard-earned money. 

Start an emergency fund

Take advantage of your 13th-month pay by opening a personal savings account that you can turn to for emergency purposes. From accidents to job loss, your emergency fund helps you prepare for unforeseen and unwanted events.

Monitor your monthly spending and see how you can build an emergency that can shoulder at least six (6) months of your living expenses.

Build up your retirement fund

While you should always have your emergency fund ready in case of emergencies, building up your retirement fund, which goes in the long-term, is another story. Regardless of your age, planning your retirement gives you and your family a rewarding experience that’s so much better than material things.   

Allot a portion of your 13th-month pay to start saving for your future. Then, make it a habit to set aside 20% of your monthly salary that you can deposit to your retirement fund. And promise yourself to not touch this fund. 

Put up your dream business

It’s about time that you make your dream business come true! For a very low capital that ranges from ₱5,000 to ₱10,000, you can put up a street food stall. You can sell a variety of the usual tusok-tusok like kikiam, tokneneng, fish balls, squid balls, and chicken balls. Or you can opt for a videoke rental business that will definitely be a hit especially this Christmas season. The estimated capital for this is ₱25,000. 

For more business ideas, you can check out our list here

Donate to charity

It’s never too late to share your blessings with others. Whether it’s donating money to your local orphanage or distributing goods at the home for the elderly, it’s always a good time to give back. 

Gather your loved ones and decide which charity you can visit and donate money or goods in. This one’s a great investment because it’s a way of inspiring others to do the same and to make the world a better place to live in. Anyway, we believe that sharing is caring.

Pay off your debts

If you’re struggling to pay your existing debts, then your 13th month pay should solve this dilemma. Now is your chance to settle your debts from credit card, amortization, and personal loans.

Paying the amount you owe your family and friends, the credit card company, and other financial institutions can help you save on interest rates. Now you can finally take a breather from the stress you experience from worrying about your financial responsibilities. 

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Reducing or eliminating your debt can be your starting point when building your emergency and retirement funds. Thanks to your 13th month pay, you can turn it from a once-a-year bonus to a long-term financial plan. 

Be a responsible borrower and make sure you compare personal loans with GoBear before making that financial decision!



GoBear team

GoBear team

GoBear Team - Our content creators collaborate to come up with finance articles that will make financial literacy a joy to learn and financial security an attainable goal.