Filipino Money Life Plan {For Failure}

Here’s the standard life plan for the average Filipino Millennial after they graduate from college:

1. Find salary paying job.

2. Enroll yourself in SSS and just be content with this pension plan.

3. Receive your paycheck. Since you need to unwind after stressful days of work, go out for a night-out with your co-workers OR treat your whole family to a nice family dinner at a fancy restaurant OR spend it all on buying your the latest gadget.

4. A major credit company calls you and they tell you that you’ve met their ‘requirements’ so you’re eligible for a credit card account. You receive your first credit card. Use it for cash advances and shopping purchases. You can pay them in installment basis at low interest rates, right?!

5. Keep up with the SPENDING plan. Out of all your take-home income, 70% goes to your living expenses, 30% is for entertainment, 0% is for savings.

6. You get promoted at work! With that new promotion, you immediately get a new set of clothes, a new gadget, a new car or maybe a new condo to go along with it?

7. Since you got a pay raise, you decided to start saving by parking their savings in cash.

8. Get married and make babies. Overspend on your (first) child buying clothes, shoes, toys, and expensive baby accessories (e.g. strollers and cribs). (Your cash savings are severely depleted.)

9. You still put off saving for retirement since you have to spend for your family’s living expenses, children’s education, credit card payments, the car and house loan. And you have to support your aging parents as well too. Retirement seems far away still anyway.

10. Retire at age 60, and live up to age 80. You receive a hefty separation sum from your company and a tiny pension from SSS, but it only supported your living expenses for 3 years. Since you didn’t save enough for it, just stay dependent on your children in those retirement years.

Unfortunately, this is the life plan that many Filipino millennials are going through. You might have some friends who followed this 10+ step program for Millennial Money Life Plan {For Failure} or YOU might have already taken the above steps.

All kidding aside, there is still hope for you to make it financially, but it will take some hard work.

Make your own life plan to financial freedom.

THIS Millennial Money Life Plan {For Failure} should be a NO-NO-NO!

Here’s how to start.

  • Educate yourself and your family on proper money management. Read books, attend seminars, watch videos or consult a financial adviser.
  • Create a household budget and get everyone involved in the planning.
  • Do financial planning so you can map out and prepare for your future needs.
  • Learn how to save and invest now for your life goals and dreams (children’s education, travel, house, retirement, etc.)
  • Teach your child how to be financially free by encouraging them to learn with you.

I’m sure I left some things off the list, help me out. What else are Filipino Millennials doing to guarantee financial failure? The more we know, the more we can avoid the same things.

Anyways, I hope you’ve learned something new. Have a great week ahead everyone!

photo credit: Downward via photopin (license)

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