Financial Literacy is very low among Filipinos. Compared to our neighbors in Asia and the US, our country has the least number of people who are financially literate, and secure. Many would attribute this to a lack of knowledge or awareness, but the sad truth is that even though Financial Literacy advocates are everywhere and offering FREE Financial Literacy Seminars and talks across the country- even abroad for the OFWs, a lot of Filipinos still cannot be bothered to attend these seminars.
Planning on getting married in a couple of years? Have plans to put up your own business? Travel Plans? Want to buy your dream house one day? Want to be able to retire comfortably and not just rely on your Social Security Cheque? Then you need to Invest, and do it NOW!
There are so many reasons why we need to invest, but let me give you my Top 5 Reasons why.
From the moment we got a job and start earning our first salary, we were told to save so we can have enough money to feed our family, and to buy a house and a car. We were designed to desire the best things in life and we were told to work hard so we can afford them.
As soon as we get our paycheck, we spend on clothes, restaurant food, travel and so many other things. Advertisements from TV, social media, and magazines scream to us on a daily basis that we NEED to get the latest gadget, the most stylish pair of sneakers and the celebrity-endorsed cosmetics. As a result, we work extra hard so that we have money to spend on things we think would make us look and feel good.
Debts- who doesn’t have any? Is it wrong for a person to have debts? Does it make you a bad person if you have a lot of debts? Well, if you’re the type who likes to borrow money and not pay it back- then people probably don’t like you that much. I know I wouldn’t. So is it wrong for a person to have debts? It depends. It depends on why you’re in debt and what kind of debts you have.
After more than a year of paying for late payment charges, interest and for my outstanding balance, I am finally free from Credit Card debt! I’m finally out of the deep financial hole I got myself into, and I certainly don’t want to go back there again. It was a very tricky situation, and at some point I felt like it was going to set me back by at least 10 years! Fortunately for me, I had the opportunity to attend several talks on Personal Finance, including debt management that equipped me with the knowledge, and helped me to develop a better mindset and behavior when it came to managing my finances. I also didn’t have a lot of credit cards which helped, A LOT. In fact, I only had 2, and I only used 1. The other one was sort of “mandatory” after securing a loan from one of the lending banks here for a major expenditure back home that I needed to settle immediately.
“I don’t have enough money.”
“I can’t afford it.”
Sounds familiar to you? I’ve heard people say this so many times, and not too long ago, so have I. It’s not uncommon for a lot of people to be in a situation where CASH is scarce, and they end up borrowing, or foregoing certain wants, or even needs just because they do not have the money to pay for it. Sadly, in most cases people actually end up borrowing money NOT because they wanted to, but because they had to. In my previous blog, I wrote about Randell’s 5 No Non-sense Steps in Personal Finance, and the first step is Improving your Cashflow.