This year, make your 13th month pay count

Here’s how you can get the most out of your bonus.

You probably have a hundred ideas on how to spend your 13th-month pay—or your Christmas or year-end bonus—even before it gets credited to your payroll account. But just because you receive a windfall does not mean you have to spend it all on a whim. If you’re really serious about getting your finances in order, you’ll put off that shopping spree, and consider putting your money on important things instead.

First things first. If you have outstanding debts, make use of your extra money to pay them all off, if you could. If it’s a credit card bill, pay off the balance ahead of time. If you have an existing loan, pay what you can in advance. Besides, the sooner you settle your liabilities, the faster you can move on to bigger financial goals.

There are also some big-ticket purchases that you might need to make: Do you need to take your car to the auto shop again? Is your refrigerator consuming way too much energy? Now might be a good time to finally replace them. It won’t be cheap, but if it’ll end up saving you more money in the long run, then it’s worth it.

If you don’t have debts to pay or any big-ticket needs to buy, you can go ‘out of sight, out of mind’ on your money by putting it in your savings account or investing it in low-risk tools such as a time deposit. Doing so makes it more difficult to spend your hard-earned money, because you don’t have it on hand. You might even want to take the opportunity to increase your nest egg or long-term savings, or add more than a few zeroes to your emergency fund.

Of course, it doesn’t hurt to look beyond the present. While being an employee gives you the security of a fixed salary month after month, it’s not going to last forever. Make sure your future self gets by with more than just your savings by making your money work for you. You can strike out on your own and start a business or consult a financial partner about financial solutions like variable universal life (VUL) insurance, which combines the perks of life insurance and investments.

The same goes for the things that you still want to pursue. You can’t put a price on self-growth, so you might want to use your bonus to sign up for a class you’ve always wanted to take or books that can broaden your outlook in life. According to Huffpost.com, “Investing in yourself is one of the best return on investments you can have.” It sends a message to yourself and the world about the importance you’re putting on your value and potential. Whether you want to learn a new skill or change your lifestyle for the better, go for it.

While this year has not been easy for anyone, it’s certainly been tougher on others. If you’re lucky enough to still have a stable income, why not share your good fortune? Look into legitimate charity organizations or give generous tips to service workers. Aside from helping make a difference in other people’s lives, you might just learn to replace your fondness for retail therapy with philanthropy. And also, it’s the season of giving. Do you really need another reason to spread more Christmas cheer?