Discover how your 13th month pay and bonus can do more through investments

Neil Gregori Garen

Dec 14, 2024

Discover how your 13th month pay and bonus can do more through investments

Do you have extra money after cutting back on Christmas parties and gift-giving? Are you looking to start the new year with better financial habits? If you’ve received your government-mandated 13th-month pay, company-initiated bonuses, or other incentives, investing is an excellent way to secure your financial future.

As a hardworking Filipino, making the most of these funds can help you prepare for long-term goals and unexpected needs. With so many investment options available, you can find one that matches your goals and comfort level. Here are five ideas to help you grow and maximize your hard-earned money.

Turn your Christmas bonus as Money Market Funds

If you want a safe and accessible way to grow your 13th-month pay and bonuses, money market funds are an excellent choice. These low-risk investments focus on short-term, stable financial instruments such as government securities and time deposits. They are ideal for first-time investors or those looking for a better alternative to traditional savings accounts, offering higher interest rates without locking your money away for too long.

Consider love of Pag-IBIG MP2 savings

For those who value guaranteed returns and minimal risk, the government-backed Pag-IBIG MP2 Savings program is a standout option. You can start with as little as ₱500 and enjoy tax-free dividends that are often higher than regular bank rates. This program allows you to save and grow your bonuses over a five-year period, making it a reliable way to invest in your future with peace of mind.

Passive income through Real Estate Investment Trusts (REITs)

Turn your 13th-month pay and bonuses into a source of passive income by investing in Real Estate Investment Trusts (REITs). These allow you to benefit from rental properties without the need to own or manage physical real estate. REITs distribute earnings through dividends, providing a steady income stream, while also offering potential for capital appreciation. It’s a smart way to diversify your portfolio and enjoy the benefits of real estate with lower capital requirements.

Mutual understanding with Mutual Funds

If you’re short on time or lack the expertise to manage your investments, mutual funds are a great option. These professionally managed funds pool money from various investors and invest in a diverse mix of assets, such as stocks, bonds, or a combination of both. With different types of mutual funds available, you can select one that matches your risk tolerance and financial goals, ensuring your bonuses work for you without the stress of monitoring the market.

Grow your 13th month pay with Stocks or Exchange-Traded Funds (ETFs)

For those with a higher risk tolerance and a long-term mindset, investing your bonuses in the stock market or ETFs can lead to significant growth. Stocks allow you to own a share in companies, while ETFs provide a diversified portfolio of assets to minimize individual risks. These options require patience but offer the potential for substantial returns, making them ideal for individuals aiming to build wealth over time.

Investing your bonuses and incentives is a wise step toward securing your financial future. While celebrating the season through gift-giving and attending Christmas gatherings strengthens your relationships, it’s equally important to invest in yourself by making your money work for you.

Whether you prefer low-risk, stable returns or are willing to embrace higher-risk options for long-term growth, there’s an investment opportunity that suits your needs. Start small, remain consistent, and choose investments that align with your goals. By investing today, you pave the way for a brighter and more financially secure tomorrow.