00:00Savings are hard to come by when you're living paycheck to paycheck or even on a feast or famine mode when the latter is more often than not.
00:09Still, as our Denise Osorio reports, one can attain liberty from debt next year with anti-debt snowballing practices and putting up an emergency fund.
00:22As the new year approaches, many Filipinos are once again grappling with the challenge of managing their finances,
00:28particularly amid persistent inflation and the growing ease of online spending.
00:34Yet behind these pressures, experiences with money vary significantly.
00:39For sales associate Ash Reyes, saving is a slow and deliberate process.
00:45Whenever there is money left over from her salary, she puts it aside, however small the amount,
00:51so she has something to fall back on in the event of an emergency.
00:54Sa panahon kasi ngayon, medyo mahirap talaga mag-save ng pera kasi yung mga bilihin ngayon medyo mataas na siya.
01:02So, it's 30 yan na lang din kung nakakapag-save pa.
01:05As far as possible, she avoids taking on debt, relying solely on her income and the savings she has managed to build.
01:12Looking ahead to 2026, Ash says she plans to leave her unnecessary spending in 2025 in order to save more consistently.
01:20Ma-lessen lang din yung mga expenses, especially kapag hindi mo naman din kailangan.
01:26Kasi yung mga tao kasi ngayon parang kung ano lang din gusto nila, napipili nila.
01:30In contrast, the situation is very different for Chris Villarde, a roadside food vendor.
01:37From her day-to-day selling, she's unable to save as her earnings do not always cover her costs.
01:43Wala, nakinadudukod po ng pag-unti-unti, lalo na pag-ano, yung medyo matuma.
01:50Tapos, siyempre yung, ano, bikili ka, kaya kukuha ka po ng ano, wala akong mahiripun.
01:56On some days, Chris earns only around 5,000 pesos, an amount she then has to reinvest to keep her business running in the days that follow.
02:04According to financial advisor, Enery Franklin D., the first step is having a clear understanding of how much money comes in and goes out each month,
02:14and of which expenses are need and which are wants.
02:17He adds, this is where sensible financial decision-making begins.
02:21Ang very important dito sa expense natin, Denise, is we have to track it.
02:25So pag itong track din na ito, you can't improve what you don't track.
02:29So itong pag-track natin, it's very personal, yung iba, very traditional, pen and paper, yung iba, gumagamit pa ng mga envelope method, yung iba, gumagamit pa sa notes, simple.
02:38Ako personally, just before last year, I'm using Excel or Google Sheet, pero this year, I'm using an app na.
02:47So there's no one-size-fits-all, do what works for you.
02:51Kasi, ano, no, malalaman mo kasi pag-i-track mo, no, malalaman mo, for example, malalaman mo pag nag-overspend ko ba, for example, sa mga food ba, or sa mga luho ba, di ba?
02:59If spending consistently exceeds income, D. warns, this will eventually lead to debt.
03:06For this reason, he stresses the importance of managing debt carefully, particularly by avoiding high-interest borrowing such as online lending applications and unpaid credit card balances.
03:16And for many people, a more effective approach is to clear debts gradually using the so-called debt snowball method.
03:23Paying off the smallest debt first before tackling those with larger balances while continuing to meet the minimum payments on the others.
03:31As debts are cleared, confidence grows along with the discipline needed to address larger payables.
03:36D. also highlights the importance of building an emergency fund to avoid sinking back to debt when unexpected events occur, such as illness or the loss of employment.
03:45He advises an emergency fund should amount to three to six months' worth of expenses and kept in an easily accessible savings account, such as those offered by digital banks, so it can be withdrawn immediately when needed.
03:58Once debts are under control and an emergency fund is in place, only then should insurance and investments be considered.
04:05For those just starting out, D. recommends low-risk, government-backed options, such as the pag-ibig MP2, where investments can begin with as little as P500 pesos.
04:15However, despite the range of financial strategies available, D. insists these are not the most important factors in improving one's financial position.
04:23Money management, it's 80% the psychology ng tao or yung mindset mismo ng tao.
04:3020% lang mismo yung strategy.
04:31Very important din, mag-usapan mo siya.
04:34Mag-usapan mo siya with friends and family.
04:36D. stressed that Filipinos need to move away from the culture of avoiding conversations about money.
04:42Budgeting and saving, he says, are far more effective when discussed openly within the household, even if it begins with modest amounts.
04:50Denise Osorio, from the National Television Network, for a new and better Philippines.
Be the first to comment