Top tips on how to save your 13th month pay

by: Patricia Katigbak |


It’s beginning to look a lot like Christmas when your 13th month pay is here! You may have a list of ideas for what you want to buy for yourself and also Christmas gifts for family and friends, but you have to calm down.

There is nothing wrong with treating yourself with the money you worked hard for but, if you really want to save, you may need to stop and rethink how you can become a wise spender instead.

Here are our top tips on how you can save your 13th month pay:

  1. Set a financial goal for yourself

    In any success in life, the first thing we need to do is to set a goal for ourselves. By setting a financial goal, you are only not committing to the cause but, you are also acknowledging that you need to do this because this is for you. You must think of the bigger picture, and you must approach it as if this goal is for the long term.

  2. Divide and conquer

    Getting your 13th month pay can be exciting and you may get a little bit overwhelmed. That is why we tend to overspend. You can divide your 13th month pay into 3 major expenses such as self investment, adulting expenses, and rewarding yourself. That way, you can easily divide your hard earned reward, satisfy your spending cravings all while still setting a budget plan.

  3. Plan ahead and set a budget

    At the heart of any savings target, is the ability to budget. By doing this, you are instilling discipline in yourself, and you might not notice but, you are already separating your needs from your wants. You are prioritising our expenditures and finding a balance between spending and saving.

  4. Smooth out your bills

    Your recurring expenses, like bills, should be your top priority. Accounts such as electricity, water, credit cards and many more are things you need to pay attention to. These recurring expenses are your monthly “adulting expenses” that you need to do as a responsible consumer.

    Compute what needs to be paid currently and automatically set aside the money you need to pay for your bills. That way, you won’t need to justify having “accidentally” spent in on shopping and other activities. You get that peace of mind knowing the core living expenses are taken care of.

  5. Control your impulses

    Credit cards, ATMs, and online banking make shopping accessible more than ever. Especially during this era when everything you shop for can be delivered right at your doorstep.

    You need to control your impulses to “Add to cart” or “buy it, it’s on sale!”. By getting in control of these impulses, you are able to think before you buy. You have to wake-up and realise that everything we want is not entirely a need; the extent to which we give in to temptation typically comes down to our willpower.

    If you see something you want, ask yourself this question: “Do I need this? Or do I just want it?” and then from there, make an honest conclusion. Sometimes you will surprise yourself and show that you being firm with your financial decision will get you a step closer to your goal.

  6. Invest for your future

    Another smart tip for saving your 13th month pay is to also invest in yourself by way of investments. Recently, people have been getting to know more about investments. Investments not only cost little to start, depending on how much you are willing to put in, but they end up growing over time. The most important thing to note when getting into investments, is research. If you are new at it, start small. Invest the money you would be able to live without if it was not to succeed.

    The best time to invest and make your money work for you is now. Below are some of the investments you can do with your 13th month pay:

    • Open a savings account- limit access to your money. The best way to put the money left aside after paying bills is by opening and depositing them into a savings account. Savings accounts give you a higher interest rate than a basic transaction account, as long as you do not withdraw too much money from it, you will reap the rewards in the long-term.
    • Think about getting life insurance. This financial decision can be a bit intimidating as it requires long term commitment. The main reason for getting insurance is to secure yourself financially in the long run, but most importantly, it secures your dependents. In the unexpected event that you die or you have a severe illness, you can depend on your life insurance to pay for medical expenses. The remaining money ends up getting passed onto your dependents when you pass away as well.
  7. Reward yourself

    Sometimes it’s not just all about saving. It’s also all about rewarding yourself for over 12 months of hard work. By rewarding yourself, you can get a massage, treat yourself to the spa, or buy something you’ve been eyeing for a long time. We can also treat our family by buying them Christmas gifts and a lot more.

All in all, it is safe to say that your financial goals can be met by being consistent, dedicated, and positive. Your 13th month pay comes only once a year, and you need to budget it wisely so that you could reach your financial goals in no time!

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