Make Your 13th Month Pay Last Longer

December 9, 2022

Christmas may be the most wonderful time of the year but there’s one more thing during the holiday season that gets people excited: 13th Month Pay.

In the Philippines, the 13th Month Pay Law (also Presidential Decree 851) mandates all covered employers to pay their employees one-twelfth of their basic salary within a calendar year. It’s a worker’s right to a whole month of extra income—no wonder why we all look forward to it!

Hold your horses. It can be tempting to spend your bonus on the latest gadget or an overseas trip but, during economically challenging times like this, it’s better to think long-term.

Here’s how you can stretch out your 13th Month Bonus in ways that can benefit you and your future:

1. Start a small business.

In the digital age, it’s easy to put up a small business. You can start by using your 13th Month Pay as capital for a shop you can set up online. Many small business owners start as resellers of imported goods while others sell their own handmade items, like customizable shirts and handcrafted accessories. It may take some time to see the returns but if you keep at it, your business can soar and give you 10x more than what you initially invested.

2. Choose personal growth.

One non-monetary way you can make your Christmas bonus last longer is by investing in yourself. Improve the existing knowledge and skills you have by enrolling in workshops, attending workshops, or applying for higher education. Doing so will attract more professional opportunities and may even earn you a higher salary.

3. Build your emergency funds.

You don’t necessarily have to spend your 13th Month Pay immediately. There’s always an option to keep it in your savings account so you have enough funds should an emergency strike. If you want to make sure you’re not tempted to withdraw from your emergency fund account, you can put it into a time deposit.

4. Save up for your dream retirement home.

Don’t wait until your Golden Years. Looking even further into your future, you can start planning for your retirement as early as now. Similar to building your emergency fund, you can also put up a time deposit account to store your funds so you won’t be able to touch it until you reach your retirement age.

5. Get insured.

One of the most effective ways to make every cent of your 13th Month Pay count is to invest in your future.

At Paramount Direct, we have the Sure Savings Plan. It’s an endowment plan that protects your future as well as the future of your loved ones. It has life, accidental death, plus hospital income benefits and a savings component so you can reach your future goals.

Payment can either be in 5 or 10 years. Premiums start at PHP872/month. Based on Plan 100 and Insurance Age 20, payable for 10 years.

To apply, click here:

Being smart about your money is also being smart about your future. Make the right investments today.

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