December 13, 2013

Finance Friday: How Will You Spend Your 13th Month Pay?

Okay, I actually don't receive 13th month pay. Nor a Christmas bonus. Much less a 14th month pay. That's just one of the perks of working from home, I guess. In fairness to my job, we do get bonuses from time to time, but they are not as regular and certainly not certain like those received by people working 8-5 jobs.

However, I do notice several people talking about their 13th month pays over Facebook already. Cue in music: It's the most wonderful time of the year! Which leads me to ask this question:

Since I can't really ask you that question, I'll just try to answer the question myself. Now, what will I do if ever I receive a 13th month pay this year?

Let's assume that I work for the government and receive yearly bonuses and nth-month pays. Or we can just assume that out of the blue, Uncle Henry Sy gave me a sum equivalent to a 13th month pay. I like the second scenario better. Anyway, I'm getting ahead of myself. What would I do if I receive that sum of money? Let's assume that I will be receiving 20,000. Here is my plan:

1. I would donate 10% of it to charity. That's P2,000.

This is considering that I have already tithed from the month's actual salary. Actually, this is a no-brainer. It's easy for us to move on, but our brothers and sisters from various places in Visayas still need a lot of help. Why not spare a small amount to help?

2. I would save 20% of it to add to our emergency fund. That's P4,000.

We're still growing our emergency fund and let me be the first to tell you that it's hard. Hard but not impossible. The emergency fund is an essential fund that anyone should have to be prepared for, well, emergencies. Others call it the security fund. If I happen to receive a 13th month pay this year, I would certainly contribute a part of it to our EF.

3. I would spend another 20% for myself and for gifts. That's another P4,000.

I won't pretend that I don't drool over mall displays or repeatedly visit online shops to "window shop." No. Apparently, it's a hard habit to break. So it's expected that I'll be spending a little amount to treat myself and others. A new blender would be nice as well as a planner...

On the other hand, knowing me, I'm pretty sure the entire amount would just be spent on Yuri-stuff.

4. I would invest the remaining 50%. That's 10,000.

And finally, investment. To be completely upfront with you, we haven't begun investing yet. However, Job already sent our "startup money" to start investing in stocks. Remind me to file the application already. As for this, I would rather let go of 10k and see it grow 12% in a year than spend it on something that will cost half of its current price next year! *ehem smartphone ehem*


So that's the plan of action I would take if ever I receive a bonus or a 13th month pay. As you can see, I tried to prioritize saving and investing over buying. As much as I would love to buy this season's newest gadgets (my low-end LG phone already has a life of its own), I would try to be disciplined and know my priorities. How about you? You who have an actual 13th month pay? How would you be spending it?

I would like to cap this post off with a word I received from last night's devotional:

On a completely unrelated note, remember my post on my favorite Android apps? Pocket App was one of them. Here's an email I just received:

Okay, I just read 2, 280, 167 words this year in just Pocket alone. Nerd alert, ZOMG!
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