People making lists
Buying special gifts
It’s a time to be kind
To one and all
It’s that time of year
When the malls are near
And you wish you
Could have more
To buy all presents
From a store
I know we all know ‘Give Love on Christmas Day’ by heart. But I messed up the lyrics on purpose not to ruin your excitement to buy lots of things this Christmas but to agree that you deserve it.
Filipinos are known to be very hard-working and good in what they do. They are loyal to their employers and that gives them the right to earn a Christmas bonus or what we all know as 13th-month pay. Once a year, usually every December, employees get to enjoy an extra month pay for a whole year of service rendered.
13th-month pay is like a really big gift from Santa Claus for grown-ups. We all get giddy when we hear about it. And when we finally get it on that one fateful day, we think about all the creative ways to spend it.
For women, it might be finally getting that expensive hair treatment you thought you couldn’t live without. Or that fancy bag that could be the perfect match for your fancy dress. Or that flashy shoes that would make you feel like the queen of the world. For men, it could be buying that latest gadget you’ve been eyeing all year long not minding it will soon be outdated once the year is over. It could also be that really classy watch who would make you more of a man. Kidding aside, we know things only give us temporary happiness. We’ll soon grow tired of them and want something new. But hey, as I said earlier, you deserve it. If temporary happiness suffices all the hardship of one year labor, then go for it. You deserve to reward yourself every once in a while.
On the other side, if you are the type of person who thinks more about your family than yourself, you’ll most probably spend your Christmas bonus to treat them. You can go on a trip or vacation and enjoy the holidays together in a place you’ve been dreaming for a long time. This plan is definitely a great way to create treasurable memories with your loved ones. This activity will also cost you a lot of money though. But for what its worth, right?
Christmas is the season of giving. But if we come to think of it, to whom do we really give our hard-earned money? When we buy things or spend money for ourselves or for our loved ones, who do you think really profits from it? When the things we bought fade or grow old, who succeeded? When our want, for one thing, has been met, who takes advantage of our nature to want more? Those are the people who are wise enough to know how to grow their own money. While you are busy taking money out of your pocket, others are busy taking it into theirs. If we fail to plan our finances well, we will go broke when the new year comes. And to reiterate, if we are not planning how to maximize our extra income to our advantage, others (businessmen) have plans for them to their advantage.
On your 13th month pay, before paying others to achieve their goals, here are the things you can do to pay yourself first:
1. Start building your emergency fund (1-3months of your monthly expenses). Emergency fund, in its very name, is a budget allocation for emergencies. Should you lose your income all of a sudden, you will not go on streets begging for money for you or for your family to survive. An emergency fund is best placed in the bank where the money is accessible. Preferably, put in on a passbook and not on ATM cards because we might consider it an emergency once there is a sale in the mall and be surrounded by ATM machines is just too tempting.
2. Open a mutual fund account. It will only cost P5,000 for you to have expert fund managers who will invest your money wisely on different money vehicles that could grow it so you can reach your future goals faster. You can top-up (add additional money to invest) anytime you want to depend on your budget and goal. This makes you a certified investor.
3. Invest in the stock market. Again, it will only cost you P5,000 to open an account in COL Financial. But you must be knowledgeable before investing in stocks so attend the seminars first for proper orientation. Because unlike mutual funds, you don’t have an expert fund manager here to do the work for you. You are the one to decide where you want to invest your money. Here you have the bragging rights to be called a shareholder of the biggest and fastest growing companies in the Philippines depending on which one you chose.
4. Get yourself insured. Buying life insurance is common sense, really. You get your car and house insured but you are not willing to purchase one for yourself. Isn’t life the most valuable asset we have? Why don’t we secure it for our loved ones? Yes, unlike cars and house that can be replaced, life is irreplaceable. What does it replace? Your human value. When you’re gone, your income dies with you. But when you buy life insurance before leaving Earth, your child will still go to college, your family won’t have to sell your house, your spouse won’t find somebody to replace you because it’s hard to raise a family alone. Simply because you cared enough to make sure they can stand up on their own when you leave them. You love them too much you cannot let them become miserably broke without you.
5. Get a VUL plan, the better Life Insurance Plan. There are life insurance products that have investment element which you can avail based on your budget and financial goals. Aside from being insured, you also get to invest at the same time! This type of product or plan is called VUL (Variable Unit Link). It is life insurance plus mutual funds combined. Want to secure your children’s education fund? Your retirement fund? Your dream house fund? Any future goal you have in mind? There’s a right VUL plan for that. While your saving and investing a portion of your income, you are also insured for life. You can also pay for additional benefits with this plan. Do you worry that you might have a critical illness in the near future? Or you think you are prone to accidents? Any of this can happen to anyone and when it does, how can you afford paying for this VUL plan given that you are disabled? Set your worries aside! You just have to talk to a reliable financial advisor because the right life insurance company has the perfect solution for you.
6. Buy things that would generate income. Buying a phone? Why not use that as a loading outlet? Buying a laptop? Why not use that for a part-time job online? Shopping for clothes? Why not sell them for a higher price? There are a lot of things that you can do with things you have right now. You just have to know how to use them well for your benefit. Don’t be frantic buying things that can become your liabilities. Focus on accumulating assets. Liabilities are spending for things that take away your income. Assets are spending for things that give you income. You have to know the difference.
7. Invest in your self-development. Buy books, attend seminars, training, classes that will enhance your thinking, skills, personality, and talent. You’re not getting any younger. When will you pursue your passion? When you ran out of time and the guts to do so? Pay for the experience that will make you a better person. Keep motivating yourself to reach your full potential so you can bless other people with your God-given gift.
These are just seven practices that anyone can start doing upon getting their 13th-month pay but there are a lot of other things you can do to make the most of your money. Investing in real estate and starting up your own business is also a great way. Not everyone succeeds though so don’t neglect the power of knowledge. When you gain enough knowledge, you get the right wisdom to make the best decision for yourself. Having the right mind means you know you have to secure yourself and your loved ones first from life’s uncertainties while you work hard to reach your goals. That means you know that you need to prioritize having yourself insured before anything else. Because what’s the use of building more income if, in just a blink of an eye, it can disappear when you do?
There is no shortcut to success. You have to wake up from dreaming and do all you can to turn your dreams into reality. Learn to pay yourself first. Because the person that you are today lies the person you become tomorrow.
