There are many factors why Filipinos are struggling with their finances.
Today, I will share to you one of the reasons why they are struggling.
This is the typical cycle of a Filipino when they started to earn money.
- Buy the latest gadgets
- Purchase branded clothes, shoes and accessories
- Eat to fancy restaurant or coffee shop regularly
- Take vacations here and there
- Buy their own house or condo
- Buy brand new car
In my opinion, there is no issue purchasing stuff that you want as long as you can afford it.
However, if you buy these things thru credit card or loan, it will be a problem.
Especially if you haven’t earned the money yet that you will use to pay for it.
Of course, buying your own house will be an exception. You can loan it as long as you can afford to pay it every month instead of renting out.
Most people buy these things because of social influence, temptation or kase si Friend e may ganun.
There is no problem buying these things and I think the issue is when to buy it or the timing.
Many Filipinos struggles with their finances because they are practicing what we call:
Wikipedia defines it, “this term is often used to label the satisfactions gained by more impulsive behaviors: choosing now over tomorrow.”
Most people want instant reward.
Well, we cannot blame them because they reason out that they work hard in their job and they buy stuff just to reward themselves.
Listen, you will not get wealthy if you will practice this kind of behavior.
You have to save money before you take your dream vacation and not to sacrifice your future by spending now even if your budget is not yet ready.
TIP: If you are going to purchase for example a brand new refrigerator. Then, if you cannot pay it in full cash with your savings even though you are going to pay it monthly, it means you cannot afford it for now.
Imagine it for a while, if I give you a slice of triple chocolate cake in front of you.
Then, I told you that if you don’t taste it for 15 minutes and once I came back I will give you another slice of cake. Else, you will only have one slice.
If you will resist tasting it in every 15 minutes, then you will have a full cake after 2 hours that you can eat for the whole week.
That means if you will not execute instant gratification, you will be rewarded more.
Its similar with your finances, if you choose to save and invest first then you will enjoy the abundance fruits of delayed gratification in the near future.