5 common reasons why many Filipinos don’t save money

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“The Philippines has one of the lowest savings rate in Southeast Asia,” the ABS-CBN News has reported.

Although there are a number of companies now offering Life Insurance and savings programs, many Filipinos still don’t realize the need for saving investments.

Some would even spend more than they earn, by considering loans and spending on items which, in the end, give them the ‘buyer’s remorse’.

A 2014 survey of the Bangko Sentral ng Pilipinas revealed that only 1 in 4 Filipino households has savings.

This means that most Filipinos would possibly have no means or source of funds, in case of emergencies.

Their resort, in cases of illness or accidents, would either be to file for loans, or worse, to have nothing to spend at all.

In a recent story shared by the ABS-CBN News, the reasons for Filipinos not being open to the idea of saving for the future include the one-day millionaire attitude of most Filipinos, and the lack of discipline and commitment to invest for the future.

Many Filipinos find it hard to set aside a portion of their regular income, and so give up some other unnecessary expenditure that has become a life habit.

Many have also become so stuck in social norms and customs like the need to spend for fiestas, or birthdays, and the extended family which has burdened parents to still provide for their family members who are already capable of living on their own.

ABS-CBN News shared 5 most common reasons cited by Filipinos for not saving, including the steps one can take to address this. Can’t help but agree with this!

Reason #1: Not having enough money left for savings. Many Filipinos have accepted the idea that they only have enough for each day, and so, savings could not be on the priority list. The article mentions that the ‘first commandment in personal finance is: Pay Yourself First. While some may say that the first portion of your income should go to your tithes in church, it is advised that you also prioritize saving a portion of your income before spending on the rest.

Reason #2: Leaving things to fate. Now this is believed to be one of the ‘most dangerous things to do’, as because of too much reliance on faith, many have forgotten that “faith without works is d**d”. If you have the motivation to save, you might as well consider opening a savings account you ‘cannot easily access’. Regularly put funds into it and you will ensure safekeeping of your money.

Reason #3: Not knowing how to save. We were not always fed with tips and ideas on how to efficiently save our earnings for future use. But there is no age limit, nor educational requirement, nor skills needed in order for one to improve his current financial status. Access to savings instruments-which depends on your capacity and preference-and financial advisers have now become easily-accessible for everyone willing to protect their monthly earnings.

Reason #4: Being buried in debt. Loans seemed to have become a big part of many Filipino employees for several generations now. And this fact has also become one of the main excuses of most Filipinos for not being able to save. However, if you are determined to save for your future, this won’t be a major problem. One is advised to set aside money for savings along with loans payment.

Reason #5: It’s too late for me. Lastly, in savings there is neither ‘too late’ nor ‘too early’. What is important is to make savings a part of your budget plan. A guide for spending is important to help you minimize ‘conspicuous expenses’ which, instead of helping, make saving a lot more difficult to do.

Most Filipinos have also accepted the idea that, the more lavish you spend with parties or shopping, the more socially and financially established you look.

This attitude has made most Filipinos dependent upon their “daily bread” and has made them forget that tomorrow is uncertain.

Saving now – and saving regularly – is one big step to securing your future.

Perhaps recent posts on the “Ipon challenge” would motivate us more?

Here’s a few links:

Family Takes on Ipon Challenge

Girl Keeps all P50 bills received, saves P42,300 in Just 5 Months

Peso Sense Tips