spend christmas bonus 13th month pay smart money

1. Emergency Fund

Financial Experts usually advice people to have 6 months or more worth your salary in an emergency fund. Meaning, if your monthly salary is Php10,000 you should have minimum Php60,000 in your emergency fund which you can access easily in case of any emergencies such as hospitalization or loss of job. If you haven’t met the minimum amount that should be in your emergency fund yet, then putting your extra income in this category should be a priority. Emergencies can happen to anyone, anytime and it’s best to have a fund allocated to these unexpected events instead of using your hard earned savings that was initially meant for something else such as a dream vacation or perhaps a dream house or car.

2. Life & Health Insurance

This one is a must as well. If you haven’t got atleast one then I would highly recommend you to start availing one asap. There are alot of reliable life and health insurance providers out there and some of my favorites are Manulife & SunLife. Both companies have huge market capitalization so no need to worry about their financial stability. If it’s within your budget, I would suggest to get a life insurance with riders most importantly Critical Illness rider. Meaning if the Policy holder gets diagnosed with any kind of Critical Illness, the Policy holder gets a certain amount of money which can range from Php300,000-Php1,000,000 or even more. Let’s face it, nothing can prevent us from growing old no matter how healthy our lifestyle is and knowing that you will receive a fair amount from your insurance provider that you can use for treating your illness in case it comes is one way to be prepared. Trust me, I wish to live a healthy and happy life and die naturally at the age of 100, but in case I get diagnosed along the way, I know I’m prepared financially for my medication.

Manulife’s Website

SunLife’s Website

3. SAVE & Invest

If you’ve got number 1 & 2 covered, another great option on where to put your Christmas Bonus or 13th month pay (or both) is in investing. This one requires prior research as it involves risk. For starter, I would look into the Pag-ibig MP2 Savings Program which can earn 5-8% annually and has minimum holding period of 5 years. It’s much safer than investing in stock market or UITF since your savings are guaranteed by the government. The only thing that’s volatile is your earnings. I actually see the Pag-ibig MP2 Fund as almost risk free investment. Another options for investing are Mutual Funds, VUL, UITF or investing directly to your favorite company that’s available in Stock Market.

4. Family

I like to spend a portion of my Christmas Bonus or 13th Month Pay to my family whether it’s booking a tropical vacation in Palawan or a winter vacation in Japan, hosting Noche Buena or simply buying them something that I know they have been wanting or needing but they haven’t got the time to get one. Anything that brings family and relatives together, money shouldn’t be a question.

5. Giving

One selfless option is giving. ‘Give’ is such a positive word however you apply it. You can give love, give donations, give groceries to less fortunate families, give free meals during Christmas day, give time by volunteering or give bonuses to Ates & Kuyas doing great job within your household. Whether it’s time or money, giving is a great way to spread the Christmas spirit and know that it will return to you 10x fold!


Where did your Christmas Bonus go last year? and where do you plan on spending it this year? Share your experience or plan below!




  1. November 25, 2018 / 8:18 am

    This post is really awesome and thoughtful. I loved your thoughts and the way you have presented it.

  2. November 25, 2018 / 9:45 am

    I have a good habit of paying for a trip the following year or putting the money towards a debt. This year I plan to use it to finish paying off my car, way to bring in the new year!

  3. November 25, 2018 / 10:02 am

    Really this is a thoughtful post I must say and you have presented it too well. You have worked good upon it.

  4. November 25, 2018 / 3:11 pm

    This is a great post for the holiday season. I tend to over spend and regret it later. This is a better alternative to spending tons of money during the holiday season. Thanks for sharing!

  5. November 25, 2018 / 8:13 pm

    I wish we got christmas bonuses! no such luck for military personnel. I would definitely want to use it to pay down our bills.

  6. November 25, 2018 / 10:21 pm

    I tend to spend my extra money on my kids at this time of the year. They work hard and are well behaved so I like to spoil them a little bit at Christmas.

  7. November 26, 2018 / 3:12 am

    We do a lot of these things. They are great suggestions. I think many people just want to blow it instead of doing the right things.

  8. November 26, 2018 / 4:33 am

    Giving is also a nice way to spend your Christmas bonus or 3th month pay. We don’t celebrate Christmas, but my family tends to give foods and stuffs to those people in need. Thank you for sharing this information!

  9. November 26, 2018 / 5:40 am

    this post is perfect for this time of year. Ihave so many things I want to spend my money on. I think it is such a great way to diceide between jsut five.

  10. November 26, 2018 / 8:04 am

    These are some great ideas- Thanks for sharing such down to earth tips!

  11. November 26, 2018 / 4:26 pm

    Great idea! I always end up speanding it on small things. But this will make my spending better and more focused. Thanks for the post.

  12. November 27, 2018 / 6:27 am

    I’d love to get a bonus for travel. I’d go right to my mom’s for the holiday.

  13. alison
    November 27, 2018 / 2:16 pm

    This is great. We never think of what we need to do with that extra pay, just how to spend it right away. A rainy day fund is a must!

  14. aisasami
    November 27, 2018 / 3:21 pm

    I would love to give my bonus but this year, it is going to the govt for health insurances and taxes.

  15. November 28, 2018 / 8:50 am

    Oh I agree with everything that you have written. One thing though, I don’t have a bonus! As a stay at home mom, I only have to rely on my husband. Hope to get something from the PR companies this year, even if these are just gift certifications. But I do need cash!

  16. November 28, 2018 / 11:32 pm

    Very informative post, the importance of saving can never be over-emphasized. Thanks for sharing

  17. November 29, 2018 / 11:56 am

    I love the emergency fund. You will never know, it’s better to be prepared.

  18. Alaina-Lee Monster
    November 29, 2018 / 6:31 pm

    We are usually savers, but this year we will be adding it to our mortgage.

  19. November 29, 2018 / 10:18 pm

    What a great post. It is so important to plan what to do with this money and not just spend it. I am going to share this with others.

  20. K.A. Wypych
    November 30, 2018 / 6:36 pm

    These are great options! Thanks for sharing! I also use mine to find my international travel for the following year!

  21. December 1, 2018 / 11:11 pm

    These are all such great suggestions. Though I know many don’t have the option to save. What suggestion do you have for them?

Leave a Reply

Your email address will not be published. Required fields are marked *