Profriends News

“It’s that most wonderful time of the year---" this one-liner from a Christmas song would play in your head when the government-mandated 13th month pay is lingering around the corner, waiting to be credited to your payroll account. But as known to many, the current status of our economy requires you to be mindful on how to “let go of” or spend your bonus. Here are some smart tips where you can invest the sweet fruit of your labor and maximize its value:

1. Emergency Fund. This is often an unknown savings that every individual, or family for that matter, must have. Financial experts recommend to set aside at least 3 to 6 month-worth of your living expenses. This will be labelled as your emergency fund. As the name suggests, this will be your financial source when emergencies arise. Those unexpected things that will require you to shell out expenses, because it will be a great burden for you if you were not able to save for your emergency fund.
2. HMO. “Health is wealth.” Just like an emergency fund, it is ideal not to touch your savings when faced with an unexpected illness in the family. Having a health insurance plan which Health Maintenance Organizations (HMO) offer is one of the best investments you can give yourself and your loved ones.
3. Time deposits, stock investments, UITFs. Choose your money investment--- low risk with good return, higher risk with potentially higher return--- consult now with your bank officer and see where you are comfortable investing your money.
4. Life or Death Insurance. Accept it or not, everyone will face death. This is where these investments become useful primarily for your beneficiaries, in most cases, your immediate families and loved ones. Life and death insurances are financial safety nets that provide peace of mind, knowing that your loved ones will be protected in the event of your untimely demise. The scope and specifics of these insurances vary, so it is best to consult a financial advisor to better understand what plan suits your needs.
5. Real estate. If your cash flow can allow, real estate could be a great option to put your 13th month pay. Yes, it requires a commitment to payment terms, but looking at the long-term benefit, real estate often appreciates in value and can provide both rental income and value appreciation. If you are looking for a community-friendly home, consider buying in a Profriends community: www.profriends.com
6. Invest in yourself. Try considering to invest for your personal growth. Learn something new by enrolling in short courses that will benefit you. Attend workshops that will enhance your skills. Additional knowledge will always be useful in the future to advance your professional career and will potentially give you the chance to earn more.

No matter how big or small, the extra money can always be more useful if you know how to maximize its worth.