13 Ways to spend your 13th month pay smartly

Christmas is almost approaching, this means reunions, gift-giving, and extended vacations is just around the corner. Although, the announcement of our much anticipated 13th month salary is the thing that keep us on the tip of our seats. Usually, we utilize the money to pay for holiday expenses or to pamper our loved ones. However, some of us frequently let the extra money blind us and end up blowing it all in one go. Even though there is nothing wrong with rewarding your hard work, your 13th month pay can go a long way if you know how to use it. Nowadays, increasing your cash flow is crucial, especially with continued inflation, and you can use your 13th-month pay to improve your finances.

To help you make the most of your hard-earned money as an investment, we’ve compiled 13 passive income ideas.

1. Save for Emergency Fund – You can start a separate account to put money away for any type of urgent necessity or emergency situation. The 13th month’s pay can indeed be put into your emergency fund. It will help you prepare for unanticipated circumstances.
2. Invest in the stock market – These are wise ways to invest your 13th month’s earnings, whether through the stock market, unit investment trust funds, mutual funds, or other long-term investing strategies. Even while the benefits might not be seen right away, you can feel better knowing that your money is being invested in a way that could ultimately increase in value.
3. Start a small business venture Starting a business with little savings is a common tendency among people. They can sell a variety of goods online and earn some quick money while doing what they enjoy. Many people, have launched businesses while residing in their own apartment or condo.  Instead of investing time in something they don’t enjoy, they can start their business by concentrating on what they are best at.
4. Save money on efficient appliances Prices seem to be rising everywhere. Your power bill is something you can control, unlike many other bills. Choosing an energy savings appliance can assist in reducing your recurring electric costs. Along with that, you can relax knowing that you’re doing your part to reduce the impact you have on the environment.
5. Pay your Dues and Debts Check this off your list and settle all of your bills before you start your holiday shopping. Being debt-free throughout the holidays will make it simpler for you to take full advantage of the season, regardless of whether that debt is from your credit card, bills, or loans.
6. Boost your savings Withdraw funds from your payroll account and open a new savings account with the intention of enhancing your current financial status. This enables you to manage your money with responsibility and acumen. In other words, it’s not always necessary to spend more money. Saving them for later use is sometimes the best course of action.
7. Get a life insurance Use this as a chance to safeguard yourself and your loved ones against unanticipated events like chronic sickness, accidents, handicaps, and decapitation. Let your initial life insurance premiums be covered by your 13th month’s salary. One of your best financial decisions will be to buy life insurance.
8. Save for home improvement Before the damage gets worse and your repair costs increase, spend that bonus on some home repairs. It is better to be prepared than to be ready. 
9. Learn a new skills According to the wise and wealthy man, Warren Buffet “The best investment you can make an investment in yourself”. Whether it’s for professional or personal reasons, your 13th month pay might go a long way in assisting you in learning a new skill or improving your present ones. Get certified by enrolling in the course or workshop you’ve been longing to attend.
10. Go for a vacation There are various non-working holidays around Christmas. This is the ideal opportunity to relax and refuel. Never forget that you don’t need to fly to the most costly locations for a vacation to be truly enjoyable. Just find a quiet area to rest your weary mind. An overnight stay in a luxury hotel would do.
11. Donate to Charity One of the best and most selfless ways to spend money is to donate to charitable organizations. Donating even a small percentage of your Christmas bonus would be greatly appreciated. Donate to a non-profit whose causes you firmly believe in. One of the world’s greatest feelings is the act of giving a gift without anticipating anything in return, just out of sheer kindness and empathy.
12. Give gifts for those who supported you this year  The most lovely method to express your sincere thanks for someone’s goodwill is by giving them a thank-you gift. Express your genuine gratitude and love to those who make a difference in your life.
13. Spoil yourself Finally, you are your biggest investment, you can disregard the rest and only think about treating yourself. Purchase whatever you’ve placed to your cart  including a quality pair of shoes, a designer dress, a new phone, and other items. Don’t even hesitate to pamper yourself and satisfy a specific materialistic craving if you’ve worked hard for the entire year. You worked a full-time job to earn it. You earned it through hard labor.  

With the money you’ve waited and worked so hard for all year, you can accomplish so much. However, you must undoubtedly use it smartly. The enormous sum that many people spend all at once without properly considering their choices tends to blind many people. But nobody wants to begin the following year with nothing.