5 Poor Money Management Habits that Filipinos Do


Not all Filipinos have the knowledge and information on how to manage their finances. Thus, I summarized the money management habits I got from my experiences during my financial journey.

Not only you but also I was guilty about these poor habits. Good thing I realized them when I was younger, and I was able to correct and overcome some of these.

1. Not having a savings account particularly for life savings

Most Filipinos do not have a savings account. I used to spend first and then save last because of the mindset I had, that is, I am secured with my day time job. Then, I thought that it is ok to spend because salary would come up on the next 15 days.

This practice became a cycle until I realized that I didn’t have savings in my bank account after many years of working.

Most of the time, only the maintaining balance was left. The other times, the remaining amount was only sufficient to survive the days until the next “sweldo day.”

You need to do the following to overcome this poor money management habit:

  1. Open a savings bank account.
  2. To start, put at least 20 percent of your income to your savings account. It may hurt at first, but it won’t hurt anymore as soon as it becomes a habit.
  3. Never take any amount from your savings account. I suggest that you apply for a passbook savings account without an ATM card to prevent your impulsive mind to withdraw from your account, given that the withdrawal process requires you to fall in line, which usually takes a lot of time.

2. Spending on unnecessary things

I asked some of my friends and colleagues about their worst poor money management habits. Most of them said that they choose to ride a taxi instead of a cheap transportation method even though their destination is very near.

However, they tend to ride on a cheaper means of transportation when they have used up nearly all their money. Some of them also spend on expensive coffees and teas even though it is unnecessary. They also eat out for lunch, even though they are used to bringing packed lunches. However, during the days when they have limited cash, they opt to bring packed lunch from home.

They can also avoid buying expensive coffees during these times.

You need to do the following to overcome this poor money management habit:

  1. It is alright to ride cabs or taxis but only when necessary. In a usual circumstance, use a cheap means of transportation. Doing so won’t make you less of a person, given that you are used to doing it. If the place is just near, take a walk. Aside from saving money, you can lose some extra calories. Moreover, walking has health benefits.
  2. Buying expensive coffees is tempting, but hold your horses first and delay your gratification. You can have the powdered cappuccino that you can buy from a grocery. They basically taste the same. The catch? You can even have it every day. However, you can still opt for the expensive one, but only as a reward for yourself when you accomplish something.
  3. Eating out for lunch. Continue bringing packed lunches if you are used to doing it. Doing so is not only economical but also better because it is prepared at home. Eat out once in a while but not almost every day. You may eat out during a Saturday or Sunday.

The key here is moderation, given that spending on the things mentioned earlier is not the actual problem. You must observe moderation on spending the things that you want.

The preceding tips may be a great alternative for you, particularly if you have a tight budget.

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