Why Do Most Filipinos Ignore Financial Security?

When it comes to generosity, Filipinos are always willing to prepare food for guests and relatives. Well, there’s nothing wrong with that as long as we don’t overdo it. Most of us spend lavishly on gifts and travel just to make our families and friends happy. However, financial security is often out of the picture. Why is that? It’s because many pinoys have a poor mindset and wrong beliefs about money. 

A typical filipino would rather spend his 13 month pay on new gadgets and eat at a fancy restaurant. Don’t be surprised if a fellow pinoy spends 10,000 pesos in one day. Trust me, I knew one. Majority of people in the Philippines don’t even prepare for emergencies. They don’t believe it could happen to them. They resort to borrowing from families and friends which is really a bad idea. They stick to the old belief system that money can’t be taken to your death bed. Yes, it’s true but bills won’t stop even at the time when we’re about to die. It’s so foolish to think that emergencies won’t happen. It will happen and we have to be ready for it. Most pinoys love to make lame excuses just to protect the idea of not saving money at all. 

Saving up for emergencies is crucial, so better start now. It’s good to identify different types of emergencies below, so don’t be caught off guard:

1. Job loss. Working for someone else can’t be done forever and we all know that. You might be having a job that you really love, but a lay off can happen at any given time. It is recommended to have a buffer fund for this unexpected event. 

2. Minor and major repair. Whether your car broke down or a simple sink problem would need cash. Better to save up for it as well. 

3. Sickness. We aren’t immortals. We live and get sick. It is important that when hospital bills began to skyrocket, we have enough money to spend. 

4. Natural Calamities. Typhoons are pretty common in the Philippines and some atm machines can be unavailable. It is a rule of thumb to have adequate cash on hand. 

Becoming unprepared for unexpected events is detrimental and this can affect our financial security. Saving up is necessary to achieve financial goals and your future self would thank you for it.