Did you know that the Philippines has one of the lowest savings rates in Southeast Asia? According to a Bangko Sentral ng Pilipinas survey in 2014, only 1 in 4 Filipino households has savings.
This is worrying, as it means that in the event of an emergency or sickness, majority of Filipinos have no means to fund their needs. This also implies that they could fall into debt or worse, not be able to cover their emergency needs.
What keeps most Filipinos from saving? Unfortunately there is no one answer. It’s been argued that the Filipinos’ fatalistic or easy-go-lucky attitude prevent many from getting into the savings habit.
There is also the lack of discipline and commitment to stay on the savings path. After all, building up savings starts with giving up a portion of your regular income and having the discipline to do this continuously, while resisting the urge to dip into these funds for whimsical reasons.
Let’s look at the 5 most common reasons cited by Filipinos for not saving, and, if it applies to you, we also share the steps you can take to address this.
Reason #1: Not having enough money left for savings
This is the most common reason cited by people for not saving. However, if you take this as an excuse, then you will never be able to save at all. The first commandment in personal finance is: Pay Yourself First. Make it a habit to save first before spending the rest of your income. You have to be disciplined and bite the bullet if need be, giving up some expenses in order to make way for savings.