Wais tips to spend your 13th-month pay & earn a passive income

Reunions, gift-giving, and long vacations are all reminders that Christmas is just around the corner. But if there’s one more thing that keeps us on the edge of our seats, it’s the release of our coveted 13th month pay.

Typically, we use the money to help with holiday expenses or treat our loved ones to something nice. However, some of us tend to be blinded by the extra cash and end up splurging it in one blow.

While there’s nothing wrong with spoiling your hardworking self, your 13th month pay can go a long way if you know how to spend it wisely.Augmenting your cash flow is essential nowadays (especially with ongoing inflation) and your 13th-month pay can be of good use to boost your financial standing.
That’s why we’ve rounded up some ideas for passive income so you can turn your  hard-earned money into a worthwhile investment. Check out these wais tips on how to spend your 13th month pay:

1. Launch an online business
   In an age where the internet rules, starting an online business can be a fun venture. Aside from the flexibility it offers, most online businesses have low start-up costs. It’s also simple to set up. All you need is your 13th month pay as capital then you’re ready to roll! There are also numerous channels for selling your stuff, including Facebook, Instagram, Tiktok, and most e-commerce sites.
   Some online business ideas you can explore:

• Online selling
• Consulting services
• Virtual assistant
• Online teaching
• Retail affiliate partners
• Dropshipping

1. Invest in the financial market
   Another way to grow your 13th month pay is through investment vehicles such as the stock market, unit investment trust funds (UITFs), and mutual funds. You can start investing for as low as ₱5,000. Before you embark on your investment journey, make sure to educate yourself by doing research and consulting an expert or a financial advisor. Learning from someone with experience will help you determine your risk appetite, as well as guide you to choose the right investment type that matches your goals.
2. Buy life and health insurance
   ‍Getting an insurance policy is a valuable investment. Not only it gives you and your family peace of mind but also secures you from possible financial troubles when the unexpected happens. Life or health insurance never depreciates, and you’ll reap its benefits the longer you have it. Here’s a pro tip: use your 13th month salary to pay your premium annually, saving you hundreds of pesos compared to monthly or quarterly installments.
3. Sell information products
   Did you know that you can monetize your skill and earn a passive income? Time to turn your expertise into valuable information products such as online courses, e-books, and PDFs! The good thing about these digital products is that they are inexpensive to produce. In return, you can sell them at high prices. Utilize your 13th month pay to fund your ‘online brand’ and upgrade any equipment you need to make your products as pro as possible.
4. Open a high-yield savings account
   If you’re looking for ideas on how to earn a passive income, you can maximize your 13th month pay by putting it in a high-interest savings account. Just make sure to maintain it until you reach the desired amount. Having a cash buffer in place is another good investment to safeguard your finances from emergencies. Remember, the greatest reward you can give yourself is the gift of financial security, and there’s no better time to start building it but NOW!

Nothing beats the joy of seeing the fruits of your labor. How you will use your hard-earned money is entirely your decision to make. But when you do, keep in mind that your wants should not supersede your needs. Always be wise with your spending habits.

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