Money is perhaps one of the most sensitive topics when it comes to Filipino culture — lots of Pinoys tend to feel uncomfortable talking about money, especially when it comes to how much money you got in the bank. It’s understandable at some point, but that shouldn’t be the case in some situations. Here are 10 reasons why most Filipinos have little to no savings.
1. Most Filipinos Are Not Financial Literate
It is very common for Filipinos to be skeptic when it comes to money matters, this is why financial literacy is not a big thing in the Philippines. Pinoys tend to think that Financial Advisors are only after making money off of them instead of actually helping them manage their finances.
As a result, a lot of Filipinos turn to their friends or relatives (who are usually not qualified) for financial advice. And as a consequence, instead of being able to save more, others are left clueless when it comes to managing their finances.
Luckily, a lot of Filipinos are now starting to realize the importance of Financial Literacy that’s why seminars and workshops are becoming popular nowadays.
2. Too Shy To Ask For Help
Have you ever experienced being too shy to ask for help and end up not knowing what to do? If yes, then definitely you’re among the many Filipinos who feel that asking questions is considered a bad thing.
Some people tend to have this notion that people who ask questions, or those who seem innocent, will most likely be made fun of. This is a sad reality for us Filipinos. If there’s smart shaming, there’s also this thing.
More Filipinos should realize that asking questions is not bad at all. It is through asking questions that we learn the best way to do things. This is true when it comes to managing your finances — don’t be too shy to ask for help or advice especially from people who are successful.
There are tons of ways on how you can search for those people, in case you don’t know of someone personally. You can even utilize the internet to search for groups that are actively giving good financial advice.
So if you still haven’t liked Smart Juan’s Facebook page, be sure to like us on Facebook!
3. Too Much Spending
Most Filipinos tend to spend way beyond their means. Some even borrow money just to buy things that they don’t really need.
The lack of self-control when it comes to spending on unnecessary things is among the top reasons why most Filipinos have no savings.
Learn how to control your wants and focus only on your needs. If you have a credit card, don’t think of it as a “free money” that you can use on buying those expensive things that you don’t actually need. You should realize that you will still pay for your credit card bill, and worse, with high interest!
But if you think that you know how to control yourself and you value the benefits of having a credit card, you may want to read this article on how to apply for a BDO credit card.
4. YOLO Attitude
The “You only live once!” or YOLO attitude is another reason why you don’t have savings. This is when you go partying every weekend, splurging on items that you do not really need, buying things that would only give you temporary satisfaction, and then justifying it by saying “you only live once, so I have to live life to the fullest”. This is without realizing that this may actually make you broke in the future.
So be wise and think twice the next time you use the term “YOLO!”.
In some countries, people who are celebrating their birthdays often get treated out by their family, friends, or co-workers, but in the Philippines, it’s the other way around! The one who’s actually celebrating his or her birthday is the one who should treat everyone. Yes, that’s right.
A lot of Filipinos easily give in to peer pressure and end up spending a lot of money treating everyone instead of growing their savings.
So the next time you celebrate your birthday, you should be smart enough to know that you do not have to treat everyone out. Instead, it should be the other way around.
We Pinoys tend to get easily envious of what others have. May it be the latest gadget, dress, shoes, or even car! Some people even go to the extent of going beyond their means just to upstage or at least get to somebody else’s level.
Being a social climber will not only leave you broke but also cause other people to look down on you.
Be content of what you have. Who knows, with hard work and perseverance, you might even exceed other people’s achievements.
So the next time you feel envious of your friend who got that latest gadget, always ask yourself this: “do I really need to have that latest gadget? Can I afford it?” and the answer should always be “No”. Always think about your savings and your future! Be a Smart Juan. 🙂
7. Falling For Bad Loan Schemes (Loan Sharks / Five-Six)
Under no circumstances that you should fall for these types of unfair schemes. Not only this will give you a hard time paying for the high interest rate, it will also leave you with even more debts!
There are tons of alternatives out there — especially those that offer flexible payment terms and reasonable interest rates.
Some people tend to get lazy when it comes to providing legitimate loan institutions their documents and other requirements, and instead turn to these loans sharks (such as five-six) where they can easily get their money with little to no requirements.
In the end, they end up either paying for extremely high interest rates (that can go up to 60%) or worse, be left with even more debts.
So be wise when it comes to choosing from where to borrow money.
8. Falling For “Get-Rich-Quick” Gimmicks
Pyramiding scams have become way too common especially when it comes to the Multi-Level Marketing (MLM) or Networking industry. A lot of Filipinos tend to be victims of the said schemes with the promise of getting rich quick with little to no effort.
Folks, always remember that there’s no such thing as easy money. Getting rich is the result of hard work.
Instead of ‘investing’ your hard-earned money on these “get-rich-quick” scams, invest it somewhere else. There are plenty of options — one of which is by investing on stocks. There are workshops and seminars you can attend if you really want to get serious about growing your investment.
So the next time someone invites you to invest your savings on their company, think twice and be skeptic about it. Remember the saying “Nasa huli ang pag-sisisi” the next time you are presented with the said offer.
9. Splurge On Paydays, Struggle For The Rest Of The Month
“Petsa de peligro” has become a common way to describe the days wherein you risk being able to go to work because you no longer have money to spend on your commute or even your food. This is perhaps the result of a common Filipino culture wherein we tend to overspend during paydays and not think about having enough money to get through the rest of the month.
In order to avoid this, it is important to have a budget plan and sticking to it. Think of how much you’ll be saving if you cut down on your unnecessary expenses.
Avoid impulse buying, no matter how much you really want that new gadget.
Be a Smart Juan by politely declining lunch invites and bring your own baon to work instead. Not only this will help you save but it will also help you make sure that what you’re eating is healthy.
10. Lifestyle inflation
Finally, one common reason why Filipinos have no savings is because of what we call Lifestyle Inflation. This is when you adjust your lifestyle in response to a promotion or increase in salary.
Before, you’re fine with taking the FX or Jeepney on your way to work, but ever since you got that pay raise, you now want to always ride in a taxi.
A common reason for this is peer pressure. Your friends or co-workers will expect you to adopt to a new lifestyle when you get promoted or finally get that pay raise. This shouldn’t be the case.
Instead of falling for Lifestyle Inflation, think of all the money you’ll be saving if you get that pay raise and still continue your current lifestyle.
In conclusion, just avoid all the things mentioned above and you’ll be on your way to growing your own savings. Have some more tips you want to share? Feel free to share them down the comments section below.
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