Y.O.L.O or You Only Live Once is a philosophy common to many Filipinos. If it were not a factor that could affect their financial health, adhering to it would be a good thing. However, Y.O.L.O has the potential to compromise their ability to become financially stable since it involves a carefree lifestyle that could influence them to prefer fun and adventure over practical matters. Come 5 or 10 years later, given they continue living with their happy-go-lucky perspective, it’s not impossible to find themselves broke around a week after payday.
An Emergency Budget Is Unheard of
Many Filipinos who are in their late teens and early thirties don’t fancy the idea of setting aside funds for a probable financial crisis eventually. Preparing at least half a year’s worth of expenses is recommended by a number of financial advisers.
However, not only is the concept comical, there’s also a hard time for them to save for emergency mostly because of social pressure from their friends and colleagues. They say statements of such nature, but when emergencies arise, they’ll have no choice but to rely on the remaining balance in their savings accounts.
The Credit Company & I Are Best Friends
Filipinos usually have a habit of shopping, treating themselves for the hard work that they have done, disregarding their current financial status, and letting their credit cards have their backs. They rummage through signature stores and take advantage of the establishments’ sales for items they probably don’t even need at all. As a result, financial doom is up ahead. Although they may be aware of interest rates, they rely on their cards anyway. The disadvantage of having credit, however, is destructive as most do impulse buying every time a sale comes up in major malls.
Must Have These Gadgets!
Some Filipinos have the habit of purchasing the latest versions of smartphones, music players, tablets, and just about every other gadget. Fast forward to months ahead when newer versions of these things hit the market, they’ll be among those who are first in line to take them home. Since they’ll actually be paying for the same item all over again (only the new model may come with additional features and maybe a modified design), they’re accountable for making unnecessary purchases.
Use Now, Pay Later
“We’re busy!” is a common excuse that many Filipinos stick with when asked regarding paying all sorts of bills beyond due date. Since penalties are issued for late payments, this could be a problem when the little charges accumulate over time. Even if they’re really occupied with a lineup of duties, they could still help themselves financially by submitting their dues on time. Considering we’re already in the digital age (i.e. a time when online transactions are available), missing deadlines shouldn’t be a practice.