Earning a high income may seem like the ultimate financial goal—but without proper money management, it can lead to a false sense of security. For Registered Financial Planner Christopher Cervantes, financial freedom is not about how much you make, but how well you manage what you keep.
“Many people think that once they earn more, all their financial problems will go away,” Cervantes told Financial Adviser PH. “But the truth is, income alone doesn’t guarantee security or success. It’s how you spend, save, and invest that truly matters.”
Cervantes recalled a client consultation that illustrated this point perfectly. A young professional sought his help in rebuilding her relationship with money. On paper, she was doing well—her income was significantly higher than her peers. Yet her net worth was either the same or even lower compared to her friends.
“She wasn’t broke, but she was baffled. She couldn’t understand why she wasn’t getting ahead financially,” Cervantes said.
To find out, they reviewed her last three months of transactions. The results were eye-opening: she had spent P28,000 on online food deliveries and P10,000 on various digital subscriptions—all of which she hadn’t realized were quietly draining her income.
“She had no idea that these small, recurring expenses were adding up to tens of thousands of pesos. That money could have gone into investments, savings, or even a simple emergency fund,” Cervantes explained.
The lesson? Earning more won’t make a difference if your expenses grow just as fast—or faster.
Cervantes emphasized the need to track spending and build awareness around where your money goes. “If you don’t know your numbers, you won’t know what’s holding you back. Financial freedom comes from control, not just cash flow,” he said.
In today’s world of instant gratification and digital spending, it’s easy to fall into the trap of lifestyle inflation. But as Cervantes reminds us, “The key to financial peace isn’t in the paycheck—it’s in the plan.”
