The COVID-19 pandemic is far from being behind us, but some people are not letting that spoil the Christmas season. While we surely can’t celebrate the holidays the same way we usually do this year, there are still numerous things that you’re probably looking forward to in the coming days.
One of which is likely receiving your 13th month pay from your employer. You’re probably thinking of using that money on gifts for your loved ones, food for family gatherings, or something to treat yourself with. That’s all fine. It’s Christmas, after all, and it doesn’t hurt to spend your hard-earned money every now and then.
However, this year might be the perfect time for you to consider setting aside a percentage of that money for something more practical.
What do I mean
Consider this: With the risk of catching the virus still very much present and community quarantine orders still in place, our activities are limited. Most people are expected to stay at home and skip their typical Christmas activities for the year. That equates to less expenses and more opportunities to save.
For instance, if parties will be held remotely via video chats, you can save the money you normally use for potluck food. Feeding yourself and other members of your household will likely be less costly than buying food for your entire family or office.
If you’re working at home, you don’t have to battle through traffic and experience the so-called Christmas rush, which can lower your gas and transport expenses.
Of course, these are just a couple of the examples of where you can save during this year’s holiday season. What matters the most is what you’re going to do with the money you save.
Your options
The best way to go about this is to set aside 20% of your 13th month pay, which is the minimum percentage.
As to where you’re putting that money, you have two options: an investment plan or an insurance policy.
An investment plan can bolster what savings you already have and diversify your portfolio, making it easier for you to eventually reach your financial goals There are different types of investments, each with its own advantages and disadvantages. It’s best to consult with a licensed financial advisor on your best options.
Insurance policies, meanwhile, provide a safety net for your finances in these uncertain times. Consider purchasing a health insurance plan, which can cover for your medical needs in the event of an emergency. In case you already have one, you might also want to look into life insurance, which offers financial security for your next of kin after your passing.
The great thing about scheduling the purchase of an insurance policy in December is that you can use your 13th month pay or other Christmas bonuses to pay your premiums each year.
Again, don’t let this stop you from feeling any sort of guilt when you spend your paycheck on things that bring joy to yourself or your family and friends. Self-care is important too. And because you make your own money, you can spend it however you like. Just remember that you are responsible for your own expenses.
linkiNG you to opportunities,
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