Updated: July 16, 2012
A couple of weeks ago, I was interviewed by Mike Aquino for Yahoo! Southeast Asia on the top money mistakes that people, specially Filipinos, make.
The article just got published today and you can check it now over at Yahoo!.
Or if you’re feeling a bit lazy to leave my blog (thank you), then below is a summary of what was shared in the article.
Plus, some additional inputs on top of what was written in the original piece.
But first, here are the “Top Four Money Mistakes“:
We prioritize spending over saving – leaving nothing.
Time and again, I’ve emphasized the value of always paying yourself first – that is taking away a portion of your salary as savings IMMEDIATELY after you receive it, and then spending or living within what’s left.
This way, saving becomes “automatic” and “less painful”.
We invest before we’ve built an emergency fund.
Alanis Morissette best sums up the reason why you should have an emergency fund in her song, Ironic.
“Life has a funny way of sneaking up on you, when you think everything’s okay and everything’s going right.”
Read more: How To Build an Emergency Fund
We avoid the stock exchange.
Not so much a “mistake” per se, but investing in the stock market is just one example that show that we Filipinos are often ruled by fear and ignorance when it comes to investments.
I always say that you shouldn’t invest in something that you don’t understand. But that doesn’t mean you should totally dismiss or ignore those things.
Instead, have the initiative to study and learn about investment products – and there are so many out there, not just the stock market.
But just in case you are interested in investing in the stock market, then…
Read this: How To Invest in the Stock Market
We get financial advise from the wrong people.
Perhaps one of the “least obvious” money mistake that we Filipinos often make – and one that you should constantly remind yourself when you finally set yourself to pursuing financial knowledge.
There are many out there who claim to be “wealth experts”, “financial gurus”, “investment advisers” and even “top business consultants”. But unfortunately, not all of them can show real proof of their claims.
Be careful from whom you get financial advise. Do background checks and invest in due diligence before you pay for and attend any seminar, nor believe anyone and apply their advise.
And yes, to humbly speak, this includes me.
I am an engineer by education, and everything I know about business, investments and personal finance are but lessons that I learned from experience and my own self-study.
That is why, I am glad that a lot of you have found my blog, informative, educational and even inspirational. That despite my lack of solid credentials on finance, you have nevertheless given your trust to the things I write.
And for that, I thank you.
In the end, if there’s really one advise that I firmly believe you should take from me and apply in your life, it is this:
If you want to be rich, then you have to learn how to build wealth; then design a plan and act on it; and most importantly, never give up.