A Millennial’s 13th-Month Pay Spending Decision
November is both a trick and a treat, especially for us employees. For the most part, this is the Halloween Season right after the month of October with scary costumes around–so that’s a trick. And this month also serves, for most offices and employees, the month when the 13th month is given–and that’s definitely a treat.
So what do we do with our 13th month pay? OMG! I can think of that very sleek iPhone 6. Wait, I remembered that there is a promo fare going to Hong Kong early next year! But Christmas and New Year are fast approaching, I also need to buy new clothes for the Christmas Parties and the New Year’s Eve. Oh wait, I recalled my mother asking me for her new phone. But I guess a new laptop would be a great and DSLR companion in my blogging events.
These are just some of the things that came into my mind every time the excitement of receiving the 13th-month pay comes into play. I am a millennial and definitely a gadget should never be out from the list of the things that I must buy this Christmas. But because I am already a millennial in the stage of prime spending years and poised to reshape the economy on how I spend, let me share to you some of the things that I will do with my 13th month pay this year–the right and mature way of spending that a 25-year old young adult must do.
Note: I am supposed to make an evergreen article for this specific topic but decided to make this personal as possible to provide an honest, practical, and personal take on how I will spend my 13th-month pay and parallelism with how literate I can be financially.
1) Pay off credit card debt
In my previous post “Valuable Realizations About Money Of 25-Year Old Gay Man,” there are good debts and there are bad debts. And what makes it very hard for us to save is because of the burden that we have accumulated from not spending our money right. Personally I will be paying off my credit card because it takes a lot of money from my income. I will be honest that I only pay the minimum of the due balance that I have which made me more buried in the interest that it has grown this year.
2) Pay off my loans (SSS and Pag-Ibig)
Talking about good debt, having a loan is a good debt provided that you use it for something that is worthwhile or that can also generate more income. On my part, I did the otherwise. Another thing that makes these loans not on my priority list because it deducts as very little amount from my income. But as the year passes by, the loan that I can use for my present financial goals is just placed on hold because of the confidence that I have that even it will be deducted from my monthly gross, it will not hurt. I don’t feel it either.
3) Invest on your health and dental needs
While most of us are enjoying the benefit of our health card, not all of the things are covered. I always take advantage of the things that I can get from my card. But vitamins are not included here. Twenty-five is quite a young age, as they say. But let’s remember that though it is a prime age, we are nearing old age and we must take good care of ourselves as early as now. More so, I will also invest in my dental needs. Despite having a premium with health cards for dental services, we still need to shell out a few more in order to get the best services that we deserve. I personally invest in my dental filling and premium prophylaxis so I will not be thinking too much off the damages that incurred and may be incurring. After all, a great smile is a great investment too as we grow old.
4) Get government issued IDs
For those who have these, congratulations! But for those who don’t, perhaps because we have no time to get one or our existing ones are already expired, then it is about time to reconsider getting these. As mentioned, we are already adults next in line in shaping our personal finances and the economy, then we must be equipped with basic things to do it. And most of the things that adults are required to are government issued IDs. We are no longer students where a cedula or barangay clearance would suffice. Again, we are young adults in the greater scheme of things.
5) Open a checking account
It is not really as popular as it is compared in other countries like the US. When I started working in a global financial firm, I even wondered what’s the use of these checking accounts when in fact credit cards and cash can be used instead. But just recently I was forced to open a checking account as a requirement for me to get a loan from a bank. The most obvious benefit of having a checking account especially in the Philippines is that 1) it is harder to open unlike savings account thus giving an impression that you have the financial capacity of opening it in the first place and 2) you don’t tend to spend money that is not earned yet unlike using a credit card. I got mine from East West Bank called the Regular Checking Account for P5000. (Click here for more details). It is even needed especially if you are going to get a loan from big banks or for big purchases like car and house and lot. So as early as now, open one.
6) Consider a life plan
When my 30-ish friend told me that she already got a life plan for her mom, I was kind of confused why at an early stage she was getting it and what her mom’s reaction would be if it’s like she’s being buried though she’s still alive. But she told me that it is better to prepare now for unlikely circumstances rather than being at a state of shock both emotionally and financially if one of our loved ones passes away. And it actually made sense when she explained it to me with reality coated in scare tactics. And it will also apply to us. The earlier that we plan for the vague parts of our lives, we also make it a little bit clearer and easier for our loved ones to ease the pain that we will be leaving after we stop living. You might reconsider these life plans from St. Peter’s here.
7. Make an online shop
In an article by Forbes entitled “10 New Findings About The Millennial Consumer” it says that:
62% of millennials say that if a brand engages with them on social networks, they are more likely to become a loyal customer. They expect brands to not only be on social networks, but to engage them. This obviously takes more labor from companies to be able to maintain social networking feeds, but it’s worth it if you want to reach millennials.
On this regard, there is a big market that we can tap while doing our fulltime jobs. The generation before us nor the generation coming next to us are not aware of how we make things work in a genration we currently dominate. So get to know your interest and make an online shop. It can be cosmetics, cars, gadgets, house and lot or anything that you know you can earn from. You can check out One Super Shop as they can help you make your own ecommerce website. There’s no harm in trying.
In my previous post “I Am Broke And I Am Financially Literate“, I accpeted the fact that I am not aware of financial literacy. But I concluded in the blog that there is definitely something that I can do about it and I am more than willing and committed to make it happen. So now I will immerse myself in the world of investing. Honestly, I have no idea yet as to what I am going to face in investing but I am positive enough that it will be a great way to start my adult life. And by the way, I will be meeting one of the financial advisors and CPA of Sun Life that I met in an event just last week. Wish me luck!
These are just some of the personal and practical things where I will be alloting my 13th month pay and some are already projects in progress that I wish to share. So remember to spend your 13th month pay properly this trick or treat season. Make it a treat and don’t just trick yourself with temporary whims.
A Millennial’s 13th-Month Pay Spending Decision
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