The Worst Spending Habits of Many Filipinos | While Filipinos are known for being generous and kind, they are also known for having bad spending habits. These habits are often due to poor life decisions, resulting in financial emergencies
It’s pretty known to everybody that Filipinos are one of the most generous and compassionate people around the world. But sadly, these qualities are also the reason why Filipinos need some lectures in managing their finances.
Many Filipino families are suffering from financial issues because of bad spending habits. Due to financial illiteracy, many Filipinos don’t experience financial freedom even though they have reached their retirement days.
In this article, we will talk about the worst spending habits of most Filipinos. And if you’re practicing one of these things, it’s time to eliminate them as soon as you can. Attaining financial freedom will become a lot easier if you know which areas you need to improve.
Spending Too Much on Souvenirs
You probably notice how extravagant Filipinos give their families souvenirs whenever they go back home from overseas work. They bring home multiple boxes full of goods, branded clothes, shoes, and imported items for their families to enjoy.
While there is nothing wrong with buying souvenirs for your family, spending too much on these items can consume all of your hard-earned savings. Always remember, you are not obliged to buy everyone an expensive gift.
To avoid overspending on souvenirs, try to give your family a better coming-home gift that will not require you to spend too much money. For example, treat your mom and dad a day at the spa, or invite your siblings for a fun-filled dinner cruise. By doing these things, you get to save a lot and create new memories simultaneously.
Throwing Parties All the Time
Filipinos like to socialize. And when they are in the mood to socialize, they go all out. They throw parties for wedding anniversaries, baptismal, birthdays, and despedidas even though it’s not included in their budget.
Often, the party organizer is the one who pays for everything. But when it comes to parties, inviting people is not enough. Filipinos spend money on caterers, servers, photo booths, party hosts, and other irrelevant services, causing them to spend too much money on celebrations.
Instead of throwing big parties all the time, take the time to think if the party you’re about to throw is essential. If it’s just a kiddie party, it would be wiser to spend close family members only and organize a program so the kids can have fun. You don’t have to hire a lot of people too, after all, Filipinos are great party guests too, they like to help in cleaning after the celebration.
Borrowing from banks and financing institutions without thinking of the consequences is probably the worst financial habit of most Filipinos. Taking up loans isn’t bad at all. It helps improve your finances and increase your credit score.
However, when you start to lose control overusing credit cards and borrowing money, that’s when the real problem will begin. Fraud detection programs can tag you once your credit score gets low, informing banks that you are an irresponsible borrower. As a result, your integrity as a person will be affected.
Before you borrow money:
- Check if your monthly income is enough so you can pay on time.
- NEVER borrow money for leisure or recreational activities.
- As much as possible, make borrowing money your last resort or consider it only during emergencies.
Not Saving Money
Because of too many priorities (a.k.a. parties and souvenirs), Filipinos tend to forget the importance of saving money. They end up spending their income on things and experiences that they don’t even need.
Not saving money is a harmful financial habit that may result in long-term adverse effects. If you don’t save now, you will have a hard time during your retirement days. Remember that someday, you will have to stop working, but your bills and essential expenses won’t care. They will keep coming as they are vital in your survival.
Set up a savings account and be sure to deposit money every month. If possible, refrain from checking your savings account all the time so you will not be tempted to spend your savings.
Indeed, it’s important to cherish your life and enjoy every moment. However, many Filipinos have embraced the YOLO lifestyle too much. YOLO, or “You only live once,” refers to enjoying oneself without thinking of their future. It’s about pouring everything you have to enjoy the moment and not saving for the rainy days.
Life is not a fairy tale, and even though you only have one life to live, you have an entire lifetime to prepare for. Count to think of it, will you be able to provide for yourself when you get sick? Do you have savings for hospital expenses? In case you lose your job, do you have a backup plan?
Sad to say, the most common resolution of most Filipinos for these problems is borrowing money. And as mentioned, irresponsible borrowing can drown you in debt.
At the end of the day, you are the only person responsible for handling your finances. You will either get a step closer to financial freedom or pull yourself down to financial emergencies for every decision you make. So, always be wise in spending money and consider your needs over your wants.