Work With Lornajane: 4 MONEY MISTAKES THAT YOU DON’T KNOW YOU’RE DOING

MONEY MISTAKES

We all make mistakes when it comes to handling money matters. Managing money is an important factor in life. However, too many Filipinos are making mistakes that hinder them from taking control of their finances.

Peso Mistake #1: Filipinos do not have clear financial goals.

Filipinos have this general idea of desiring their dream house and dream car. However, most Pinoys do not have an idea on what they really want and on how to get there.

Pinoys spend their money on shoes and clothes and some Starbucks. Although these are needed (I doubt with the Starbucks part), they do not realize that their money goes to these items and not to their dream house or dream car. Buying more cappuccino is less likely to be found in their financial goals, but this is where most Pinoys spend their money on the little things.

If you know what you want, you will shift all of your resources towards that mark.

Peso Mistake #2: Filipinos avoid finances.

Pinoys tend not to look at their statement bills or even look at their bank account. Pinoys avoid discussing money with their parents, with their partners, because they do not want to create guilt or conflict, or discussion makes them too anxious.

It is recommended that this issue should be resolved rather than just put away. It is more stressful to avoid the problem rather than face the problem.

Peso Mistake #3: Filipinos do not know how much they are spending.

During my elementary days, I had this classmate named Ria Mae Corda, who at the mere age of 8 years, already knows how to take note of her finances. She had this small notebook and she uses this to record ALL of her spending for the day.

Imagine a small child knowing how to manage her finances yet most adults do not even know where their money goes to. Pinoys know the big bills like rent or electricity bill, however, they do not know where their money goes on the smaller stuff like new clothes or groceries.

Walkington, a Canadian money coach, recommends keeping record of everything for a few months to know where the money goes. She advises to make a limit to each expense and not to spend beyond it.

Peso Mistake #4. Filipinos depend on credit.

Suze Orman, a Pinoy financial coach, said that credit card debt is “financial sin.” She gives advice that before saving money, before investing, the number one goal is on how to pay off the credit card debt. Pinoys will be in greater problem at the 36% interest.

These are four common money mistakes that you do not know you’re doing. You should start creating and defining your financial goal. Even if you think that your financial outlook does not look so bright, you still can manage your money.

Create your goal, be motivated by it, manage your finances, and then your financial future will look brighter.

To Your Success!