1. No Money to Save
There are lots of Filipino’s who are unemployed or living in poverty. That is why, saving money is just a dream for more Filipino. For those who are employed and earning money, saving is still very difficult for them. There is a universal formula in savings which is Income – Savings = Expenses. However, for most Filipino, they get this formula the other way around. In the end, even if they earn more, they still cannot save any money.
2.Wrong Spending Habits
In terms of spending, we Filipinos live and spend extravagantly. We want to have the latest cellphone, latest shoes and anything that is trending. This is to the extent of sacrificing basic needs such as food. Take a look at those typical OFW. When they go home for vacation, it’s like there is a big party for the whole barangay. Our one day millionaire habit is kicking in. That is why after few days of spending they are already broke. They now wants to go back abroad and earn money for another cycle of vacation.
Have you ever think of saving before, and then when you got your paycheck, you see the latest iPhone available and you tell yourself, you will start saving next paycheck. Then when the next paycheck came, you still have something to buy and take the savings forgranted up to the next salary. In the end, you save less or none at all.
4. No Plan or Bahala na Attitude
Most of us have this “bahala na” attitude. So in terms of planning for the future, we rely on this saying and take everything as it is. Sames goes to saving as this will be for future use. We never prepare for what will happen tomorrow and only concern of what is happening today. This is also supported in our current culture, wherein in parents are taken cared of their children. By right, it is the parents responsibility to take care of their children. But the children, is it really their responsibility to take care of their parents when they grow old? I’m not against this culture, but what if their children also have their own family and do not have enough money to take care of their sick and old parents? That is why, it is still best practice to save for rainy days. Unless you want to be a burden for them.
5. Family and Friends
As an OFW, I know the culture in the Philippines in terms of having family and friends working abroad. For most members, they are thinking that it is very easy to earn money abroad that is why, it is also too easy for them to ask anything that they want. We always want to save something from our hard earned money. But when the phone rings and emergency happens in the Philippines, we are obliged to send money and forget about the saving part. Same goes with our friend, when they are in need and tell you that you are the only one who can help them. Can you refuse them? It is not wrong to help, but you need to set certain boundaries and start thinking in the long run. They might end up relying on you for everything.
6. Financially Illiterate
Finance is a very complicated subject. I hate numbers, and I hate math subjects. However, it should not be a hindrance to at least know something about finance and money management. We should at least know terms like savings, interest rates, loans and investments. Ignorance is not an excuse. There are lots of ways to learn all of this. Start investing in your knowledge.
7. Limited Investment and Savings Knowledge
If you ask most Filipino about where their savings are, they will probably tell you it’s in the bank. Only few people will tell you investments and savings in stocks, mutual funds, equities and other stuff. For some, they consider their houses, cars and jewelries as an investment. In real world, there are lots of ways to save and invest. Putting your money in the bank sounds really safe, but have you think of inflation? The money you save today maybe of same amount as to five years from now but of lesser value. The only key is learning new things with regards to investment and savings.