Some things you can do with your 13th month pay

I recieved an email a while ago and find this article worth sharing of. Please read below.. 

1. Pay off debt. If you have substantial credit card debt or other forms of debt, use your 13th month pay to pare down this debt. This will help you shorten the paying period and lower your interest expense. Being debt-free is liberating and will improve your financial standing.

2. Save. If you haven’t started a savings fund at all, this is the time to do so. We’re up for uncertain times ahead financially because of the global financial slowdown, so save when you can. Use the full amount of your 13th month pay to jumpstart your savings fund, or if you have other needs to meet, save at least 10 to 20 percent of your 13th month pay.

3. Invest. Saving is putting away money for the future. Investing is making that money work for you. If you put your money in investment vehicles, it is possible to earn interest or yield on it without you having to put extra work in. Examples of investments you can go into using the amount received as your 13th month pay include: time deposits, mutual funds, unit investment trust funds, and equities or stocks. Time deposits give a higher rate of return than savings accounts, but your money will have to be locked up for the entire term (e.g., 30 days, 60 days, 360 days, etc.). You can have a more diversified investment portfolio using mutual funds and UITFs which are available through financial institutions and banks, respectively. With these, you can invest for as little as P5,000. Mutual funds and UITFs come in different forms and may invest in fixed income instruments, bonds, or stocks, or a combination of these. With direct investment in stocks, on the other hand, you may take your pick of a company stock and invest for the long haul even with just the minimum board lot (minimum investment required).Investments come with certain risks, so study the matter thoroughly before jumping in. We recommend consulting with an investment specialist that can help you determine your risk appetite and investment horizon – two critical things to know before you get started.

4. Start a small business. Yes, you can do this even with just a small capital. Use your 13th month pay, for instance, in buying ingredients and start a cupcake business you can attend to during the weekends. If you like fashion, buy clothes wholesale in bargain centers or have clothing apparel subcontracted then sell these to your friends and officemates. You may be surprised that some businesses can be started with just P5,000 to P30,000 in capital.