We Filipinos are known to be one of the most hardworking and competent races all throughout the world. One clear indication of this is our worldly-renowned overseas Filipino workers that strive so hard just for their families to have a good and great life. However, some, if not most, Filipinos have adopted these cultural habits that possibly are few of the reasons why money/finances is a problem. Here are 10 of the money habits Filipinos should immediately avoid.
1. Friends and Trends
In general, new and trendy items get the most out of our wants and if we see our friends having these then it would automatically make us want them. This attitude unfortunately can lead to unhealthy and unfathomable results to how we manage our expenses. Think of it like this; true friends would never let you go broke – really. True friends would always understand how you are in terms of finances. The trends? Let them be. There will be a more appropriate time for all of those – we just need to be patient.
2. “When it’s for food, it’s okay”
This actually is one of the more common things we hear which is a no-brainer since food really is a necessity. Well, yes it’s not actually wrong to think of your expenses for important things like food but we know that there are a lot of alternatives or a lot of cheaper goods instead of going for those gold-like expensive groceries/meals, right?
3. One Day Millionaire
When someone worked hard and it paid off then the reward really is mesmerizing and tempting to gash down immediately. It’s never wrong to treat yourself but wouldn’t it be better if you treat yourself in a long-term perspective? Try and think about the things you buy for yourself when you say you are “rewarding yourself” and try to compare if you just save or invest it for something that can yield you more profit. I’m not saying you can’t buy but just think about the things you would.
4. Want VS. Need
When we have money in our pockets, we tend to shop with our eyes and forget really how much we have in reality. It is a fact that a lot of us Filipinos indulge ourselves to what we want rather than the things we really need. Gadgets, the latest trends, style, these things are the killer in our budgeting. Although it is not wrong for some because they use it for their own profit or benefit but I can assure you that there are alternatives that are cheaper and that would have a value better than what you are eying on if you take a look at it in a different perspective.
You don’t even have your paycheck yet, you already have financial obligations/deliverables you need to settle. This is one of the many reasons Filipinos get slammed on debt. They tend to expedite their pays by borrowing and by paying it with what they would earn. With all honesty, what you can do to avoid this is to plan your finances accordingly and do not get out of budget as regards your expenses.
6. The Mañana Habit
Many Filipinos put off savings and investments because they keep on saying that saving or investing is easy so they would just do it tomorrow. This probably is one of the worst attitudes one can have because investing early is actually a wise move because you can cash out whatever you have invested earlier or if later, better and bigger. “Do not put off for tomorrow what you can actually start today.”
7. “That’s Fine”
Okay na ‘yan is one of the most used lines of people who are getting a not-so-high salary but yearn for things they could not afford – for now. They keep on telling themselves that whatever they have now is fine; because 1. They are still young and they have ample time to prepare for their future/retirement; and 2. They know that they can earn more in the near future so they are putting it off by then. A quick suggestion would be to try opening a savings account or a small investment to counter whatever expenses you will have.
8. No-Budget Game
Many of us think we are following a budget that “ourselves” created but in reality, we just give in the temptations and fail to obey your “own” rules. To give you an idea, one of the best budgeting techniques is the 50-30-20 Rule where it says; what you take home (after taxes and fees), 50% of it should go to your needs such as groceries, transport expenses, day-to-day allowance, etc.; 30% should go to your wants. These things would be like clothes you want, grooming, gadgets, etc. Lastly, 20% of it should go to investments/savings. Yes, that is correct, a part of your take-home should immediately go to your savings or investments. Calculate how much you take home and then divide it accordingly.
Read: A Deeper Look at the 50/20/30 Money Saving Rule
9. Do not be “Shy”
A lot of people, not just Filipinos stray away from the conversation when the topic is being directed to money. It has been the norm to shy away from the topic because it is socially sensitive and confidential. I don’t know but talking to your friends and family about how you stand financially can be of big aid because generally, they know things you don’t. They can share their experiences and they can shell out their advice which can help you overall.
10. Being rich or stable takes time
Even if you deny it, Filipinos are obsessed with one-day miracles and “get rich – quick” schemes which ultimately just makes them less capable of thinking how they can achieve financial freedom. Filipinos love the idea of instant success therefore, they try to do it on their own platforms. Betting, sweepstakes, lotteries, etc., are hobbies of natives which are not bad if they are taken in moderation. This idea roots from the cause which is instability and insufficiency; they tend to drive away from the natural and basic processes which just makes them more poor.
Read: The 52-week money challenge
We can never deny that all of us have bad traits and habits especially when it comes to money. You know the saying, it makes the world go round.
If you’ve found yourself guilty, it is never wrong to correct yourself rather than let your experiences do the talking.
Read Also: Five Money-Saving Tips to Buy Your Own Home