9 Smart Ways You Can Spend Your 13th Month Pay this Year

This blog already moved to www.savingspinay.ph If you want the latest tips and stories on budget, savings, investments, productivity and making extra income go HERE instead.

It’s the time of the year again when 13^th month is here. You may have a list of ideas on how you’re going to spend it but hinay-hinay lang kapatid. There’s nothing wrong in buying your wants with your extra cash but if you want a change then you might want to think again and become a wise spender. Here are 9 smart ways you can spend your 13th month pay and get the most out of your bonus this year.

Quick Review

• I did a complete post All About 13th Month last year. Please read here >>>
• Under Presidential Decree 851 also known as the 13^th Month Law additional monetary benefit for employees from their employers must be given to enable a better Christmas and New Year celebration to the labor force.
• According to www.payrollhero.ph all rank and file employees regardless of their designation or employment status who have rendered at least one month during the calendar year are entitled to a 13^th month year. The 13^th month pay shall be in the amount not less than 1/12 of the total basic salary earned by the employee within the calendar day.
• In 2015 a higher tax exemption for 13^th month pay was pushed. Employees whose 13^th Month Pay is below 82,000pesos will not be taxed. However if your 13^th Month Pay surpassed the 82,000pesos bench mark you need to pay 30% tax.
• Basic salary includes the earnings paid by an employer to an employee for services rendered. This does not include allowance, monetary benefits or any amount outside the employee’s regular pay. For example Juan’s basic salary is 21,000pesos with 2,000 transportation and meal allowance. Only the 21,000pesos is considered in the computation of 13^th month.
• Here’s a sample of computation of 13^th month pay based on different employee types:
• • If the employee completed one calendar year to the company he/she is entitled for an amount equals to one month of his/her salary.

Monthly Pay: 21,000

13^th Month Pay: 21,000

• If the employee is new to the company he/she is entitled for a 13^th month as long as he/she spent a one month service to the company. The computation with be:

        Monthly Pay: 21,000

        Number of Months Served: 6

        6/12months x 21,000      

        13^th Month Pay: 10,500

• If the employee is resigned he/she is entitled for a 13^th month pay depending on the number of months he/she served the company.

Monthly Pay: 21,000

Number of Months Served before resignation: 9

9/12months x 21,000

13^th Month Pay: 15,750

• If the employee have multiple employers he/she is entitled for 13^th month from of his/her private employees with the same computation if he/she completed the calendar year, a new employee or a resigned employee. In case you are working in the government and works part-time to a private company you will only receive a 13^th month pay from your private employer.
• If you are on Maternity Leave you are entitled for a 13^th month pay based on the number of months you rendered before you filed your leave. You will still receive two-month worth of salary.

Now that we have covered almost everything you need to know about 13^th Month Pay let’s now reveal the smart use of 13^th Month. Know that 13^th Month happens only once a year so better to think wisely on how you’ll spend it. Here are my 9 smart ways you can spend your 13th month pay.

1. Buy/Spend for your hobby

We all have that one activity we excel at. Whether it be calligraphy, hosting, singing, dancing or blogging. Your 13^th Month will definitely be useful if you invest on new tools or upgrade your existing equipment. Take for example buying a better camera for your blog photography. This will definitely make your blog stand out more. You can also use your 13^th month to take online class or seminars that could hone your skills more.  Another tip for bloggers like me is buying your own domain. Being a .com can make your blog more professional and trustworthy. Pangalan.com is my choice of domain provider. It’s a portal made for Filipinos and I love that the customer service they provide. Their .com and .net is even on sale for only 299pesos!!!

2. Reward Yourself

You can also use your 13^th month to reward yourself with something you have been eying for the longest time. There are a lot of sales happening around the metro and upgrading your wardrobe or shoe collection can be a good option. You can also get a laptop to get started with your freelance work or a better smartphone you’ve always wanted. There’s nothing wrong in rewarding yourself as long as there is right balance between everything.

3. Take a trip out-of-town or abroad

Cross one of your bucket list and go for a weekend getaway local or abroad. Many revealed how travelling can change your perspective in life. From my personal point-of-view the travels I did this year has been life-changing. I met new people and discovered a side of me I never thought exist. You can also devote yourself on a soul-searching trip with your 13^th month pay. Try visiting www.travelbook.ph for the best hotel deals you can avail. Or book your next trip now in this form.

4. Start a side business

Now is the best time to make a business idea come to life. You can use your extra cash to open up an online shop, a homemade goods business or a franchise of your favorite snack or treats. Or maybe you can try a buy and sell business that’s easy to operate. It doesn’t have to be big already. Just start with the money you have and make it grow through hard work and determination. Read below related posts:

1. Must Try Side Business Ideas for Pinay Entrepreneurs
2. Small Business for 20-something
3. 5 Business Ideas to Start this -Ber Month

5. Invest for your future

Another smart use of your 13^th month pay is through investing. You can open a mutual fund, direct stock, UITF or any other savings account of your choice and become an investor. In my post How Do You Picture Your Retirement Age? I have mentioned how important planning for the future is. The best time to invest and make your money work for you is now. Below are recommended investment vehicle you can open with your 13^th month pay:

• Open a FAMI-SALEF account. This is the first account I have opened ever. It is my first taste on the investment world and what made me into stock investing. I have a post on the step by step process on opening one, a thorough guide on the new investor’s portal and updates on my investment as well.
• Open other Mutual Fund or UITF account. I have reviewed a number of mutual fund and UITF you can choose from. Most of these accounts require 5,000pesos to 10,000pesos only as initial investment. Make sure to do your own massive research before investing. CLICK HERE to read my first impression posts on some of the best Mutual Funds and UITF accounts in the country today.
• Open a St. Peter Life Plan. Last August I decided to invest in a life plan too just like my parents and I am glad to report to you that I’m done in my first year of paying. I have a detailed post on why I believe St. Peter Life Plan is an investment you can read here. In case you want to know more about St. Peter Life Plan or interested to invest too then send me a quick message at izza@savingspinay.ph I will forward to you the process on how to avail one.

6.  Save on your Emergency Fund

An emergency fund acts as money cushion to help in you in case of unwanted/unplanned situation. Whether it be sickness, death in the family, loss of job or other unforeseen events you have an extra money to use. In Dave Ramsey’s Total Money Makeover it is said that emergency fund should be equal to 3-6 months of your expenses.

7. Pay-Off Your Debt

If you suffer from high-interest debts then this can be a good chance for you to finally be debt-free. Go pay debts that have long been giving you stress like credit card or 5/6 and make sure not to engage with debt anymore. You can read below posts on debt-management:

1. Here's a Strategy to Pay Debt Even with Low Salary
2. SavingsPinay Debt Series | Day 1, Day 2, Day 3, Day 4, Day 5

8. Get a Life Insurance

If you want your 13^th month to be ultimately useful for your benefit then why not talk to a financial adviser today and get yourself a life insurance. In case you already have one then you can use your bonus to increase your premium payment. Why you should get a life insurance? The main reason is because life insurance can replace your income if you die. Your dependents can still enjoy the kind of lifestyle they desire and your children can still fund their education thanks to life insurance. Life insurance is all about living a legacy and I know for a fact that it can be an intimidating financial decision to do. If you need expert financial advice you can contact Ms. Patty from Integra Financials at patriciamarie-o.aguirre@philamlife.com.ph or quickly give a call at 521-6300 local 4462. Tell her that you want to know more about Life Insurance and how it could benefit you and your family or future family as read in SavingsPinay.

9. Buy gifts for your parents, family and friends

The essence of Christmas is expressing gratitude to the people around you so what a better way to spend you 13^th month pay than buying some presents to them. I remember the Christmas in 2013 when I bought a sofa for our living room. I felt so much joy to be able to provide one for my family. Until today we are still using the sofa. My eldest sister on the other hand bought a 21-inch flat screen TV for us which made everyone in the household happy. I suggest going to Lazada since they have a lot of gadgets and items for sale this season. You’ll definitely find one for each of your family member.

Final Notes from SavingsPinay

Personally I plan to divide my 13^th month into three major expenses: emergency fund, new investment (direct stock) and rewarding myself. I have been super blessed with event hosting gig for the month of December and I can’t thank God enough for the talent He gave me. So far I can definitely conclude that this year is the best year ever in terms of my financial life. Now I can’t wait for 2017 because I’ll surely double (and even triple) my hard work.

How about you? Did you get your 13^th Month Pay already? How did you use it? Or How do you plan to spend your extra money?

• Follow the SavingsPinay FB Group and join the conversation at : SavingsPinay
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• Or leave a comment below!!!

This blog already moved to www.savingspinay.ph If you want the latest tips and stories on budget, savings, investments, productivity and making extra income go HERE instead.

My Laking National Loyalty Rewards Card

I've been loyal to National Bookstore for a while now and applying for their loyalty rewards card is something I had no regrets doing. I earn points for each purchase I make which will become e-purse to pay for my next item if I wanted. It is actually one of the many rewards card I have that I really use and I never leave my house without. 

What is "Laking National" National Bookstore Loyalty Program anyway? 

"Laking National" National Bookstore Loyalty Program works like any other rewards card in the country. You apply for the card, pay a minimum amount for membership fee (or collect receipts for free card) and present your card every time you purchase a product to a particular store or service. I personally shop at National Bookstore and I bet every Pinoy has and will always be National Bookstore junkie. It is like heaven for a self-confessed bookworm and planner addict like me. It houses almost every school and office supply you need plus other unexpected materials you didn't even know you will be in need of.

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How to be a Laking Nation Card Holder

1. Pay 100pesos membership fee at any National Bookstore counter. There is a discount for students as long as you present a valid school ID. Discount membership price is 60pesos.
2. You can also present any single or accumulated receipts worth 5,000pesos from National Bookstore within the past 12-months.
3. Next you will need to fill out the Laking National Card Membership Application Form and submit to the Customer Service Counter.
4. Wait for your Laking National Card to be released. You may now sign at the back of the card and use your card in return of reward points immediately.

*No online application available

**Collection of receipts is not applicable for renewal of card.

Point System

Purchases earn one (1) point for every one peso spent at National Bookstore. This means if you buy worth 2000pesos of supply you are entitled for 200 points. 

Now every 1000 points get you 10pesos e-purse loaded to you Laking National Card you can redeem anytime.

Additional Notes:

• Your Laking National Card must be presented upon payment to earn corresponding points.
• Items on discount (Cut Price, sale, markdown, coupons, employee, using Courtesy Card, etc.) (2) whole sale discount, (3) purchases from Ticket World, (4) mobile phone load, (5) purchases of NBS gift certificates, (6) purchases using ePurse, and (7) other items or services that NBS at its sole discretion, may exclude from earning points.
• However, purchase made with Sodexo Gift Certificates can will still earn points.
• Laking National Card is not valid for online purchases.

Benefits of Becoming Laking National Card Holder

1. Get discounts and special offers on books and school supplies on specific occasions.
2. Free git-wrapping service on special occasions such as Mother's Day, Father's Day, Valentine's Day and Graduation.
3. Receive free email alerts on in-store promotions and events.
4. Have discounts and freebies from partner establishments.
5. Pre-sale privilege during Cut Price Book Sale
6. Free Premium item for every 1000pesos accumulated purchase on National Bookstore's Anniversary Month, October
7. Have special privilege on in-store events like free entrance ticket for one companion i.e. book signing
8. Exclusive Quick Shop Service for a minimum purchase of 1000pesos.
9. There is a Sign-up bonus worth 1,000 points.
10. There is a Renewal bonus worth 1,000 points.

Card Expiration and Renewal

• The Laking National Card is valid for three (3) years from date of application and/or renewal. It remains as property of NBS and is non-transferable.
• There is a renewal fee of 100pesos charged to the card holder. 
• Card Holder must renew card within one (month) before validity of earned points expires. Receipt for the renewal fee is valid for thirty days (30) from the date of payment and can only be used in the same branch where the payment was made.  Points earned by cardholders who do not renew within one (1) month from the expiry date will be forfeited.

PROS:

• Everyone goes and buys at National Bookstore so you'll definitely need this loyalty rewards card
• Easy to sign up and apply
• One card can be used by others which is a nice deal
• You can check your points online via this link http://www.nationalbookstore.com/lakingnational/

CON:

• 1 pesos equals 1 point BUT you need 1,000 points to get a 10pesos e-purse

Before my Laking National Card expired last July I was able to use my points and it turned out I have around 310 e-purse wallet. I got myself the book The Room by Emma Donoghue and I only need an additional of 60pesos to avail the book. This is super cool by the way! I'm thinking of renewing my card to avail the 1000points bonus.

Final Notes from SavingsPinay

In my opinion having the Laking National Card by National Bookstore is a good idea. You can totally use the card as National Bookstore is everywhere. The membership fee is budget-friendly as well as renewal fee. Also better to get your card now or renew it because October is coming and it is National Bookstore's anniversary. You might get amazing deals!!!

Next on SavingsPinay

Why I Choose To Be a Financially Independent Woman

Do you own a Laking National Loyalty Rewards Card too?

• Follow the SavingsPinay FB Group and join the conversation at : SavingsPinay
• Follow my official Facebook page at : IzzaGlinoFull
• Stalk some behind the scenes in my Instragram: @izzaglino
• Follow me too in my Twitter account: Izza Glino
• Subscribe to my Youtube channel: IzzaInTheUkayCloset
• Email me any question or topic suggestion at izzaglinofull@gmail.com
• Or leave a comment below!!!

4 Ways To Get Your NSO Birth Certificate Fast and Easy

I finally got my NSO Birth Certificate!!! I was planning to get my passport this September and based on my research I will be needing my birth certificate as a requirement. I was about to ask my mother to apply my birth certificate for me but I was surprised of how fast and easy getting your birth certificate is nowadays. For busy people like me I compiled the different ways you can apply and get your NSO Birth Certificate. These four ways also applies when you are looking to get other important files like marriage certificate and certificate of no marriage as long as under the Philippine Statistics Authority (aka National Statistics Office) I hope it'll help those who have no time or no energy to wait long lines and apply. 

Related: How I Applied My SSS Number in Robinson's Pinoy Lingkod Center, How I Got My NBI Clearance in Just 2 Hours, How I Opened My FAMI Mutual Fund Account (Step by Step Guide with Pictures)

Best Savings Account for Your Kids in the Philippines

If you are thinking about the best financial move you can do as a parent for your child then opening a savings account will be the best answer. You'll surely give a head start to your kid's financial success plus teach the importance of personal finance as early as today. The money you set aside in your kids savings account can help during tough college years. You can also keep the savings account as a gift once they turn 18 (legal age). 

In today's SavingsPinay post we will be focusing on the best savings account to open for your kids. I will also ponder upon the deciding factors as parents on which savings account to choose and whole lot more information. 

Let's start.

Why Open a Savings Account for Your Kids

Not all parents will think of opening a savings account for their kids especially in the Philippine culture. Plans and Insurance are a big no-no and scary financial terms that we are not yet ready to process. 

However, opening a savings account for your kids will actually become a great advantage to you and your family. A small savings account can help your child/children think better of his future. He will become instantly inspired to go to college or start a business. The savings account will give your child a savings mentality and adopt the best personal finance habit that will make him rich.

Savings Accounts in the Philippines For Your Kids

Now that you have idea on how important  savings account can be for your kids, we can now move on the different savings account in the Philippines you can opt to open. Note that there may be banks that offer savings account for kids which are not part of the list.

Banco De Oro Junior Savers

• Initial Deposit is 100pesos

• Minimum Balance to Earn Interest is 2,000pesos

• Interest Rate Per Annum is 0.25%

• Get a Junior Savers ID for free upon opening. Kids age 7-12 years old can choose an ATM Debit card which also serves as their Junior Savers ID Card.

• Flash the Junior Savers Card and enjoy discounts and freebies at participating merchants CLICK HERE.

READ MY BPI INVESTMENT FUND FIRST IMPRESSION

BPI Jumpstart Savings Account

• Designed for the youth ages 10 to 17 years old.

• Required Initial Deposit is 100pesos

• Required Balance to Earn Interest 1,000pesos

• Interest Rate per Annum is 0.25%

• Guaranteed savings that protects a portion of your child's funds from unplanned withdrawals

• Allow you to enjoy perks and/or privileges from partner merchants CLICK HERE

Metrobank Fun Savers 

• Initial Deposit is 500pess

• Required Balance to Earn Interest 4,000pesos

• Interest Rate Per Annum is 0.25%

• Receive a welcome gift upon opening, Fun Savers Club Gift Check.

• Free education trust benefit worth 50,000pesos (with minimum ADB requirement)

• Free personal accident insurance worth twice the ADB, not to exceed 1 million pesos (with minimum ADB requirement)

• Exclusive discounts and privileges from partner establishments CLICK HERE.

EastWest Bank Cool Savers Kiddie Account

• Minimum Initial Deposit is 2,000pesos

• Maintaining Balance to Earn Interest is 2,00pesos

• Interest Rate per Annum is .25%

• Access the account over-the-counter, via internet banking or mobile access.

• With Passbook for easy transaction record

READ MY SECURITY BANK UITF FIRST IMPRESSION

Security Bank Young Savers Savings Account

• Opening Balance is 100pesos

• Minimum Balance to Earn interest is 4,000pesos

• Interest Rate is 0.50%

• Receive a Passbook and/or Everyday Debit and Mastercard in one for fast transaction online, ATMs or over the counter

RCBC W.I.S.E. Savings Account

• Open to children ages 7-14 years old

• Will be opened as In-Trust-For (ITF) account for children below 7 years of age

• Initial Deposit sould be 500pesos

• Maintaining Balance is 1,000pesos

• Balance to earn interest is 5,000pesos

• Interest Rate per Annum is 0.50% 

• Get Free Personal Accident Insurance for a minimum initial deposit of 1,000pesos

• Free perks and privileges to partner outlets CLICK HERE. 

UCPB Kiddie Max Account

• Minimum Initial Deposit is 500pesos

• Minimum ADB to earn interest is 10,000pesos

• Annual Interest Rate is 0.25%

How to Open a Savings Account For Your Kids

Most if not all banks that offer a special savings account for kids will need the following requirements ready for opening:

1. Birth Certificate
2. Parent/Guardian's Valid ID
3. Kid's Two Valid ID's with your recent picture, name and signature available (if available)
4. Two 1x1 photos
5. Billing Statement for verification of home address
6. Initial Amount to Deposit

You can call or visit online your bank of choice to know more about their specific requirements.

Once you have prepared the above requirements all you have to do is visit the nearest branch of the bank and inquire. You will be asked to fill up application form and turn over your documents to the teller. You may ask the bank representative to explain to you briefly the advantage and disadvantage of the savings account you are purchasing. Then receive your welcome gift and/or ID and/or ATM after.

Things to Consider Before Opening a Savings Account for Your Kids

1. Fees and Requirements

Know whether the account has monthly maintenance fees or minimum balance to avoid future problems. Make sure that your child qualify to the requirements set by the bank. Also it is better to think whether the initial deposit needed for the kids savings account is within your budget as well as the additional investment you'll make weekly or monthly. From the above gathered list EastWest Bank Cool Savers Kiddie Account has the highest initial deposit to open.

2. Interest Rates

Of course you are opening a savings account for the benefit of your child's future. Thus, thinking about the interest rate should be part of your priority. Saving money for kids is a long time process and you might need an account that offers the best interest rate for long-term saving for the power of compounding to apply. From the above gathered list Security Bank Young Savers Savings Account and RCBC W.I.S.E. Savings Account have the highest interest rate earned per annum. 

3. Benefits to Your Child/Children

It is also important to take not of the services the ban offer to your child/children. The perks and privileges can give a huge different on your investment. From the list above Metrobank Fun Savers have a lot of benefits including education trust benefit, accident insurance and discounts from participating merchants. 

Now is always the best time to think about your kid's future. So what are you waiting for, allocate an amount to your child/children's future fund.  

Have you considered opening a savings account for your kids? Do you have any savings account recommendation? Don't forget to use the comment section below.

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4. All About Banking in the Philippines Part 2
5. How to Achieve Financial Stability in Your 20’s
6. How to Actually be Good in Money
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