There is a lot of financial advice going around the internet. However, for people who lack knowledge of personal finance, misunderstanding and even wrong acts are unavoidable. The most common mistakes that most people make are related to spending, payments, and funds, which, if not corrected quickly, can easily lead to financial stress. Although you can get online loan philippines to solve your immediate problems, keep in mind the mistakes below and correct them right away if you want to grow your finances.
Overspending and mindless spending is the first mistake that needs to be mentioned. This is also the most common mistake made by Filipinos in personal finance. When you spend without thinking about the consequences, you often buy things that you do not need or cannot afford. Such impulsive purchases will quickly put a strain on your finances. This prolonged action can lead to credit card debt.
Spending more than you earn is the most common personal finance mistake
Spending more than you earn also prevents you from saving money for future goals including your children’s education or retirement. You are also easy to fall into a crisis when there is no surplus for emergencies such as illness, accident, unemployment. Therefore, you should always spend within your means to avoid mistakes.
The next mistake is having too many on-demand monthly payments. Filipinos are all used to paying monthly bills. Some consumer bills are unavoidable including electricity bills, water bills, etc. and others are spending bills including credit cards, installment payments, etc. Especially for the consumer bills, if you do not make payment on time, you will be subject to extra interest, thereby putting more financial pressure on your monthly spending.
The next mistake is on-demand monthly payments
The utility bills cannot be changed because it is a necessity. But you can change your spending bills to ease the burden of paying each month. By cutting back on your credit card spending, trying to pay off your debt quickly, limiting your debt or paying in installments over several months, you will be able to save even more money.
Many Filipinos choose to forgo an emergency fund because they want to use the money to repay their debt, invest, or save for long-term goals. However, this is a very serious mistake, because an emergency fund plays a significant role in maintaining your financial stability.
Unexpected expenses such as medical expenses, repair costs, etc. can appear at any time. If you do not have an emergency fund, you will have to rely on credit cards or loans to cover expenses. An emergency fund is like an “insurance” to help you deal with unexpected financial difficulties, or even storms of economic turmoil. So, if you still do not have an emergency fund, start saving money each month to build up your emergency fund.
An emergency fund is your “financial insurance”
However, if you have not yet built an emergency fund, a way to help you solve urgent financial difficulties is getting online loan philippines. This is a popular form of finance today in the Philippines, especially in your urgent financial need.
Not all financial institutions offer reliable loans. One of the most trusted online lenders in the Philippines today is MoneyCat. As a large and long-standing financial institution, with experience operating in Russia, the Philippines and Vietnam, MoneyCat provides the best and most suitable online loan philippines for each borrower.
MoneyCat approves loan application within 5 minutes with fast disbursal time within the same day. You can rest assured when getting online loans in the Philippines at MoneyCat because we ensure transparency and public disclosure of interest rates and costs, helping you to solve your financial difficulties without too much pressure.
Above are top 3 most common mistakes that Filipinos make in personal finance. You can correct your mistakes now to grow your finances better. In the process of building and managing your personal finances, online loan philippines can help you solve your urgent financial difficulties. Consider MoneyCat if you are in need of a same day loan at low interest rate and high security.