Top 3 Mistakes about Money in the Philippines
It’s hard to handle money but here is a list of the top 3 mistakes about money in the Philippines.
1.) Only thinking about money matters when there are problems
This is a very common mistake in the Philippines. People generally shy away from talking about money or anything related to finances.
Mostly living in the present and seldom thinking about the future. When a problem occurs, they then scratch their heads and regret not creating a budget or saving up for emergencies ahead of time.
It might stem from Filipinos being humble and not be wanting to brag about how much money they have but one of the key ingredients to succeed in managing money wisely is being prepared for the unexpected.
Basically, time is your friend when it comes to personal finance. Use it wisely and use it to your advantage. Start early as much as possible.
Also, there’s no harm in trying to learn how to be open and communicate with the other concerned people in your household. It might be your wife, husband, parents, or children.
Let them know or at least talk to them that you have a budget and that you all need to stick to the plan so that they can understand. You can all work together towards your goal.
2.) Spending more than they earn
This second money mistake can be seen in every country in the world and not just in the Philippines. It’s a big problem when it comes to managing money.
By spending more than they earn, they are robbing themselves of the opportunity to escape from poverty.
It’s so easy to be tempted with all the 50% off sales or those brand new gadgets that they spend all their money.
One thing I have learned though is that if you are wearing it – then it’s not considered as an investment or an asset.
If a dress priced at 1,000 pesos is for sale at only 600 pesos and they bought it – they didn’t save 400 pesos but rather they just spent 600 pesos on something that they might not even need or just wear once or twice.
Think wisely and think very long before spending. Avoid this common mistake of Filipinos. Give some value to your hard earned money. It’s better to put it in a savings account for the meantime instead of spending it.
3.) Being content with having only one source of income
There’s nothing wrong with contentment but it’s risky to rely on only one source of income. What will happen if that one source is suddenly gone?
Don’t make this money mistake. Be active in achieving your goal.
Find ways to increase your source of income. Maybe opening a small sari sari store, or being a load retailer, or selling desserts to your office mates.
Every bit helps.
Every little centavo helps.
So there you have it. Those are the top 3 mistakes of Filipinos when dealing with personal finance.
How about you? Can you think of any additional mistakes of Filipinos in regards to money?
Comment down below and let me know what you think.