Use Your 13th Month Pay Wisely

At this time of the year, I envy the employees since they get their mandatory 13th month pay from their company. If their company is generous, they would even get a 14th, or even a 15th month pay. This not only covers most of their extra expenses during the holidays, but also, if they are prudent enough not to spend all of it, provides extra savings for the rainy day. The self-employed like me do not have this advantage.

If I were the lucky recipient of this windfall, the first thing I would do is to pay off my debts. The fast cash payday loans which were convenient and definitely helpful when money is tight, the credit card loans which pile up fast, these all need to be paid off. If I had already settled my outstanding debts, I would then set aside a certain portion for my savings and/or investments. Then and only then would I start spending the rest of the money.