When the 13th month pay and Christmas bonus season rolls around, it’s easy to get swept up in the holiday spirit. And before we know it, the extra cash we worked so hard for seems to vanish.
Back when I worked in the corporate world, I’d sit down with a list every year, carefully planning where to spend my bonus.
Most of the time, I’d end up saving nearly all of it. I wouldn’t even buy myself a little something, not a new pair of jeans or even a cellphone case.
Saving is important, of course, but looking back, I realize I felt a bit deprived—and I don’t want that for you.
Treating yourself, even in a small way, is totally okay.
That said, there’s a balance to strike between rewarding yourself and splurging without a plan.
So this year, let’s make a plan to enjoy our hard-earned bonuses in a way that leaves us feeling satisfied, not stressed.
Here’s how to handle your 13th month pay smartly while still enjoying the season!
1. The 50-30-20 Rule: Your Best Friend for the Holidays
If budgeting feels tricky, the 50-30-20 rule is a simple way to manage your bonus in three categories:
- 50% for Needs and Essentials
This might feel less exciting, but imagine starting the year without lingering bills or a stack of debts.
Consider using half of your bonus to handle important expenses—maybe a small debt, some rent, or even just topping up your emergency fund.
I can tell you from experience, future-you will be so grateful!
- 30% for Wants (Yes, Go Ahead and Treat Yourself!)
Here’s the fun part!
After a year of hard work, you absolutely deserve to reward yourself.
Take 30% and plan something that makes you happy, whether it’s a new pair of sneakers, a nice dinner out, or something else that adds a little joy to your life.
Just set a limit and stick to it so you don’t end up with buyer’s remorse.
- 20% for Future Goals
This might sound boring, but hear me out—putting even a small part of your bonus toward savings or a beginner investment can make a big difference over time.
Think of it as a gift to your future self.
2. Plan Ahead to Avoid Regret
We’ve all been there—the “where did my bonus go?” moment.
A quick way to avoid that regret is to make a plan before the money arrives.
Trust me, it helps!
Use a budgeting app, write it in a notebook, download my free budget templates, or jot it down on your phone—whatever works best.
With a plan in place, you’ll have a clearer picture when your bonus hits your account, making it less likely that you’ll blow it all on impulse buys.
3. Don’t Get Caught in the “Sale Trap”
December is full of sales—12.12, Christmas sales, and all kinds of “limited-time offers” that pop up left and right.
It’s so easy to get sucked into the excitement and buy things you don’t really need.
I’ve learned (the hard way) that buying something just because it’s on sale rarely makes you happier in the long run.
Instead, focus on what you’ve genuinely wanted or need, not just what’s discounted.
If it’s not on your wishlist, ask yourself if it’s something you truly want, or just a “good deal.”
READ: No Spend November: How to Save Big Now So You Can Spend Guilt-Free in December
4. Think Experiences Over Things
Research shows that spending on experiences often brings more happiness than spending on things.
I can relate. I remember one Christmas when I used my bonus to take my family to a holiday dinner.
It wasn’t about the money but the shared laughter, stories, and memories that made it worth every peso.
This year, consider treating yourself and your loved ones to a memorable experience instead of another gadget.
Maybe a small family trip, a fun workshop, or a unique dinner out is the right choice for you.
These experiences are not only easier to budget for, but they also leave you with memories to look back on, not just receipts.
5. Avoid Quick Money Schemes
Now here’s a big lesson I learned the hard way: a year when I received my bonus, I was invited by a colleague to a business presentation.
It turned out to be an MLM (multi-level marketing) scheme, and their pitch had me sold on the idea of “passive income.”
In my excitement, I went all in, withdrawing not just my bonus but even some of my savings to “invest” in the business.
I realized too late that it wasn’t really what I wanted, but my money was already gone.
If you’re thinking of using your bonus to make money, take a deep breath and think long and hard.
Ask yourself if it’s a risk you’re comfortable with.
Avoid quick-money promises; instead, consider investments that are safe and grow steadily over time.
6. Set Up a Small “Holiday Hangover” Fund
It’s common to feel the January “holiday hangover”—not from parties, but from realizing the New Year comes with expenses.
To avoid this, set aside a small part of your bonus for January.
It could be ₱2,000 or ₱5,000 to cover extra expenses or those pesky bills.
Trust me, starting the new year with a little safety net feels great.
READ: Break Free from ‘Petsa de Peligro’: A 50-30-20 Budget Guide for Filipinos
7. Invest in Yourself: Skills or Side Hustles
If you’ve ever considered a side hustle, now might be the perfect time to get started!
Imagine using part of your bonus to invest in a skill—like graphic design, writing, or digital marketing.
There are tons of affordable online courses that can help you build skills that not only bring in extra income but also add to your career growth.
It’s a win-win: you’re not just spending, but setting yourself up for higher earning potential down the line.
And if you’re one of those who aren’t expecting a 13th month pay or bonus this year, consider picking up a little side hustle or extra work.
Even just a few hours a week during the holiday season can help you boost your holiday budget and give you more flexibility with your spending.
8. Reward Yourself—Guilt-Free!
The goal isn’t to avoid spending altogether but to approach it with intentionality.
You deserve to reward yourself!
The happiness from a smart purchase lasts longer than the thrill of an impulse buy.
Focus on items or experiences that genuinely add value to your life.
Final Thoughts: Your Bonus, Your Choice
Your 13th month pay or Christmas bonus is a well-deserved reward, and it should feel like a celebration of the hard work you’ve put in all year.
With just a bit of planning, you can truly enjoy it without the usual regrets.
Whether you’re using it for bills, treating yourself, investing, or spending time with loved ones, remember that balance is key.
This holiday season, let’s make the most of our bonuses with smart choices, meaningful experiences, and the satisfaction of knowing we’re making life just a little easier for ourselves—both now and in the future.
Financial Speaker with Heart
If you’re reading this and thinking, “I wish someone could bring these practical tips to my office or community group!”—I’d love to help make that happen.
As a financial speaker, I’ve had the privilege of connecting with people from all walks of life, across companies and communities in the Philippines, guiding them through everyday financial challenges in a way that’s both fun and relatable.
My mission is to make financial advice accessible, engaging, and tailored to our unique Filipino experience—especially when it comes to making the most of holiday bonuses, 13th month pay, and preparing for a financially confident new year.
Here’s what some clients and attendees have said after our sessions:
“Ang galing ni Ms. Janice! When I saw a picture of her with Bo Sanchez sa introduction, I already knew that she’s a high-caliber speaker. No doubt, very engaging from start to end. No dull moments! Kudos to the hosts and the team who organized the Lunch & Learn. Love it so much!” – <3 from CRG-BA
“Thank you for bringing in an excellent speaker. She really seemed to know what she’s sharing. The topic is so engaging and the speaker as well as the hosts are clear and very informative. The presentation is also great and high quality.” – Elaine
“The topic is very helpful and would be extremely helpful if it was done earlier than December. Just in time for my holiday shopping! Made me think twice about what I should spend on.” -Dani
So, if your company or community is looking to bring a fresh perspective on financial wellness this season, let’s connect!
I’d love to help you and your team navigate the holidays with confidence and set the stage for a smarter, more secure start to the New Year.