According to data, the Philippines is one of the many countries in Southeast Asia with the lowest savings rates. Studies show that only one out of four Filipino households are saving money diligently. And this is quite alarming.
The fact that Filipinos are not fond of saving is worrying due to a bothersome outcome- they are not prepared for emergencies. And as a result, many of them will fall into debt and be incapable of funding their needs in times of sickness.
So why are Filipinos not saving money? Sad to say, there is no specific answer. But it’s primarily because of the happy-go-lucky attitude of most Filipinos that prevents them from saving for the future. The lack of discipline is also one of the many factors to consider, preventing them from staying committed to habitual saving.
Some Filipinos find it hard to save because it would mean that they have to give up part of their income. And that could only result in one thing, giving up some of their vices or drastically altering their lifestyles.
Let’s talk about the top reasons why Filipinos are not saving. And if you think that you’re practicing one of these habits, it’s probably time to take action.
Not Enough Money
The most common excuse of many Filipinos for not saving is not having enough money. While this might be true for many, using this as an excuse for too long can cause you not to save, ever. The rule of the thumb in saving is: Pay Yourself First. Practice putting money in your savings account first before anything else.
You might find it hard to stick to this practice, but all it takes is discipline. It means that you will have to give up a few things, such as leisure and unessential things, to finally put money in your savings account.
Buried in Debt
Most Filipinos can’t save money because they are still buried in debt, and their loans keep piling up. As a result, a bad credit score in the Philippines is becoming quite prevalent. Paying off loans without savings can be a harmful financial habit as you will not have a fallback in times of crisis. In an emergency, you will be forced to loan money again because you don’t have any savings.
So make sure to set aside even a small amount of money even though you’re still paying off your loans. You don’t have to save a lot. As long as you have extra cash for emergencies, you can have peace of mind knowing that you have money to use.
Letting Things Be
Filipinos are also known for believing too much in destiny, that fate will somehow resolve their financial problems, so they let things be. Even though your problems seem to magically disappear at times, you should still take care of your finances and save.
Track your monthly finances and figure out how much you can save. Make sure to open a savings account to put your money in. Be proactive in saving money and avoid checking your account frequently. When you’re aware of how much you’re saving, spending your money on things to reward yourself is pretty tempting.
Poor Knowledge About Saving
We all know what saving means. But many Filipinos can’t seem to grasp how they should do it. Saving money doesn’t require a diploma, but you need to have the utmost commitment to it. If you don’t know where to start, consult a financial specialist to help you sort things out.
There are a variety of savings accounts or tools these days that can help you save money, depending on your capability and income. Always look forward and have a positive mind. Knowing that your future is secured is one of the best gifts you can gift yourself after working hard.
Too Late To Save
If there’s one thing that Filipinos need to get rid of, it’s the thought that saving money is for the younger ones only. Saving is for everyone. You can save money regardless of your age. And on the contrary, it’s never too early to save as well. The first thing to do is to plan how to save and include your savings in your budget.
A monthly budget is essential to monitor how you spend your money. It’s also a good practice to stop yourself from buying things you don’t even need. Minimize your expenses as much as possible. When this becomes your habit, it will no longer be hard for you to budget your money for essential things only.
Saving is the initial step to secure financial freedom. If you want to have a brighter future, it’s time to stop making more excuses and begin embracing some saving habits now. Avoid thinking of saving adversely. Instead, think of it as your insurance so you can enjoy your life to the fullest during your retirement.