Filipinos work hard, but when it comes to saving and investing, many are falling behind. Low savings rates, high spending, and financial dependence on family make it harder to build wealth.
Less than 10% of Filipinos prepare for retirement, according to Randell Tiongson, a Registered Financial Planner. And with fewer than 20% of households insured, many are just one emergency away from financial disaster.
But here’s the good news: You can break the cycle. Here’s how to manage money smarter, save more, and secure your future.
-
Earn More, Spend Less—Don’t Let Lifestyle Inflation Win
The rise of malls and shopping apps proves that incomes are improving—but savings aren’t. When salaries go up, so do expenses, leaving little room for future security.
To fix this, invest in skills that increase your earning potential, automate savings so it becomes a non-negotiable habit, and focus on acquiring assets rather than splurging on lifestyle upgrades.
-
Ditch Debt—It’s Eating Your Wealth
Credit cards, personal loans, and installment purchases can trap you in a cycle of paying interest instead of building wealth.
Tiongson points out, “It’s difficult to save when a big chunk of your income goes to debt payments.”
The solution is to prioritize paying off high-interest debt first, avoid borrowing for non-essential expenses, and shift spending toward savings and investments instead.
-
Save and Invest—Start Small, Stay Consistent
A common myth among Filipinos is that investing requires a large amount of money. In reality, wealth is built through small, regular contributions over time. Even setting aside a small daily amount can grow significantly through compounding.
To start, set up an auto-debit savings account, explore low-cost investments like mutual funds or ETFs, and commit to investing regularly, regardless of the amount.
-
Track Your Money—You Can’t Improve What You Don’t Measure
Many people track their calories, steps, and social media engagement—but not their finances. Without monitoring spending, it’s easy to fall into financial traps.
Tiongson advises, “Inspect what you expect.” A simple habit of reviewing expenses weekly or monthly can help identify problem areas and ensure financial goals are on track.
-
Have ‘The Talk’—Stop the Cycle of Financial Dependence
Many Filipino parents expect their children to support them financially, continuing the cycle of paycheck-to-paycheck living. While helping family is a deeply ingrained value, it should not come at the expense of financial security.
Setting clear financial boundaries, encouraging other family members to contribute, and discussing retirement planning early can help break this cycle.
The Bottom Line
Filipinos face unique financial challenges, but breaking the cycle starts with smart, intentional money moves. By increasing income, eliminating unnecessary debt, investing consistently, tracking expenses, and having open discussions about money, it’s possible to build a more secure financial future.
The best time to start is now. Your future self—and your family—will thank you.
This article includes quotes from an original piece by Randell Tiongson, published in the Philippine Daily Inquirer.
