11/26/11

Wisely Managing Your 13th Month Pay and Christmas Bonus in 5 Ways

Yes, Andy Williams got it all right. It is without a doubt that Christmas is the most wonderful time of the year. Not only do we look forward to reunions with family and friends, but we also look forward in receiving our 13th month pay and for some, an additional Christmas bonus if the company has performed well during the year.


It's the Most Wonderful Time of the Year by Andy Williams
from YouTube

Before you dash out for a shopping spree and hear cash registers go wild cha-chinging in synch with Santa's sleigh bells, you must first have a solid plan as to how to utilize these funds wisely. Below are some tips how to appropriately manage the cash gifts you'll be receiving this holiday season:

1. Be clear with the budget.

Even though you'll be getting a fatter pay check this festive season, make sure that you would still stick to the budget. Determine how much you are willing to spend in connection with the Christmas season. Be it gifts, food or travel, be strict to comply with the set monetary allocation. Be conscious not to stretch your spending limits up as this will only make your expenses go overboard. Also, do not forget to include your usual expenses such as utilities and mortgage in this season's budget plan.


2. Pay off debts before saving up.

There is no other appropriate time to pay off debts than Christmas time. Since there is an additional cash, debts such as those from credit card companies can be settled without neglecting the usual household expenses. As compared to the interest earned when saving in a bank, your money's worth is further maximized when settling debts because finance charge is kept at a minimum.

3. Double up the payments.

If possible, pay double the amount of your regularly monthly payments such as that for mortgage. Aside from cutting down on interest, this will make sure your money is well spent on worthy investments.


4. Christmas is not only a season of giving. It is also a season of saving.

For most people, Christmas is the time to get hold of big amounts of money than usual. And since Christmas is only celebrated once a year, some people assume it would be fine to enjoy the season to the fullest by rendering one's bank account zero. Why not try looking at the other end of the spectrum? Remember that getting twice your monthly pay check does not happen regularly. So, why not take advantage of the situation and save a part of it rather than letting every centavo go down the drain?

5. Try to live "normally" even during the most festive season of the year.

With pockets full of moolah, one might feel like an instant millionaire buying everything he fancies at an impulse. While there is nothing wrong in spending for yourself and for loved-ones, make sure to stick with your normal disbursing habit. Remember that you still have to live after Christmas so there is no sense in emptying those peso-filled pockets.


Spending Christmas with the family
photo by photostock


Remember that Christmas is not dependent on how much you'll be spending. Even those who keep holiday-related expenses at a minimum can have a joyous season. As long as you spend the occasion with the people that matter most to you, not only will you find yourself singing to Mr. Williams' classic Christmas song but you will also feel the overflowing and warm love of the family.

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