6 Wise Investments to Grow Your 13th Month Pay


It’s the last quarter of the year and Filipino employees are already counting down the days to their much-awaited moment — the 13th-month pay.

Receiving your 13th-month pay could mean more late-night drinks, hefty dine-outs, and a sizeable budget for Christmas shopping. But, investing a portion of it can be more valuable for your future.

Play your cards right this Christmas season. Here are 6 smart investments that will help you grow your 13th-month pay.


Mutual Funds

Investing in Mutual Funds is a great stepping stone for beginners. This type of investment collectively pools money from individuals and corporate investors, which is then taken cared of by professional fund managers. You don’t have to stress yourself about making investment decisions; fund managers will do the work for you. In the Philippines, you can start investing in mutual funds for as low as P5,000.

Take a quick look at the different types of mutual funds:

  • Bond Funds 

This type of fund is invested in a mix of fixed-income investments declared by the government or large business organizations. If you’re iffy to jump on high-risk funds, bond funds is a low to moderate risk-investment perfect for you if your goal is to safeguard your savings against inflation, while obtaining higher profits than time deposits.

  • Equity Funds or Stocks 

This type of mutual fund is high-risk but offers larger returns on the long-term horizon. Equity funds or stocks are invested in the shares listed in the Philippine Stock Exchange. This is ideal for you if you have an aggressive risk appetite who’s after long-term capital growth.

  • Balanced Funds

Balanced funds are ideal for moderate-risk investors who want a more significant return on investment (ROI) than bond funds since this type of mutual fund is a combination of stocks and bonds. 

  • Money Market Funds

Money market funds are ideal for beginners and low-risk investors who aim to preserve their capital. The primary strategy here is investing in short-term securities (e.g., time deposits, corporate bonds) which gives minimal risks but with the least ROI.



Unit Investment Trust Funds (UITF) and MF work similarly: both pool investments from individuals and corporate investors. The primary difference between the two is that you buy shares with mutual funds, while you buy units with UITF. Simply put, you are a shareholder (purchasing a part of the company) in the former and an investor for owning units in the latter. Another huge difference is that banks manage UITFs. Some banks offer UITFs for as low as P1,000 to P10,000.


Small Business

Admittedly, starting a business is no easy feat and the money to put one up doesn’t just fall from a tree. You don’t need significant capital, but you can use your 13th-month pay to open up a small business like a sari-sari store or selling homemade baked goodies.

If you’re interested in freelancing, invest in a reliable laptop you can use for work. Always had a knack for photography? Upgrade your DSLR lens and start shooting. With P10,000 or even lower in hand, you have enough to help you start your own business.



For “risk-taking” investors who don’t have time to learn stock trading, you can invest in crowdfunding activities. This is considered a short- to medium-term investment which collects small amounts of money from a large number of people to fund a venture.

FarmOn is a crowdfunding community where people can chip in investment money to help back local farmers and simultaneously reap the rewards for their contributions. Investors need to create an account to choose from the list of ventures FarmOn will post. Crowdfunders can place at least P1,500 to P5,000. With the pool of money collected, the farmers can start productions, and you can gain significant ROI.


Insurance policy

Buying an insurance policy using your 13th-month pay is a smart choice. Whether you’re looking into life insurance, car insurance, health insurance, or anything alike, a policy can protect you and your loved ones in case tragedy strikes.

There’s nothing more reassuring than having the peace of mind knowing that if anything unfortunate happens, you can count on your insurance benefits and find security in the face of misfortune.


Short Courses

Enrolling yourself on short courses is a way to get updated with your industry and acquire new skills. Investing in your personal and professional growth can help unlock new career opportunities, and eventually, help you get an increased salary.

Some short courses last for three weeks while some institutions offer 3-month certificate courses. You can find online academies that provide free online classes as well. Investing in yourself is and always will be worth every penny.

Your 13th-month pay only comes once a year and though it’s tempting to spend all of it on your wants, do consider allocating a portion of it on something long-term. Be wise about your money, and invest in long-term financial vehicles.

Don’t panic if you ever find yourself short on budget after having invested your extra money. You can apply for a personal loan in the Philippines. For your other holiday expenses, you can find solace on Cashalo and avail of their personal loan to cover for your shortage of funds.