For the money-savvy Filipino.
As Lao-tzu puts it, “A journey of a thousand miles begins with a single step.” No matter how big our task maybe, we should make a start and continue from there. The same thing should apply to our financial journey to freedom. Most of us are burdened by debts, the most common reason why this happen is that we can’t resist the temptation of spending money that we haven’t earned yet. We use our credit cards to buy new clothes, new stuff for our kids. We take out loans from banks to buy a new car or new house. We barrow money from everyone we know to fund for unnecessary activities. 1 year, 2 years, 5 years to pay, then when the deadline comes for the payments, we stand at the edge of the cliff, shaking our heads, wondering in awe & fear how come we fall short of paying it. Out of desperation, we barrow money to pay for the other debt, then the ball keeps rolling from there, getting bigger and bigger, heavier and heavier until the pain is unbearable that we have no other choice but to liquidate our properties or worse, go to jail just to alleviate the suffering. We pray to God, asking when will this all end?
These things happen because we have poor financial knowledge. Our community would only teach us how to earn and spend money-that’s it. Earn-spend, earn-spend, that’s how it goes for most of us. Basically, it is up to us to pursue a higher degree of financial literacy.
Out of necessity, I would like to share these 3 Financial Steps to my fellow Filipinos. It is these things that we take for granted that are the most important in helping us achieve freedom.
Financially, a baby step is what we need to take, in order to start our journey to financial freedom. SAVE MONEY by cost cutting. It is that mere simple step of eliminating all the unnecessary expenses that we incur in your daily lives. Minimize the grocery items, use electric fan instead of air-con, don’t allow the kids to play pc games all day to lower electricity consumption, refrain from regularly having coffee or eating meals at cafés or restaurants, stop buying pricy magazines or expensive perfumes, lower the kid’s allowance & if it is possible, use public transportation instead of your car, be practical. Think of the things which consume your money, then minimize or if you can, just eliminate it completely. Always remind yourself, these are one of the reasons why you have debts. This baby step is one of the most difficult to do. Modifying our lifestyle is a herculean task; it’ll take complete and utter dedication to stick to the plan. Live within your means!
Published in: Personal Finance