Striking the balance between fun today and building a future

By Randell Tiongson on November 9th, 2024

Living in the moment is something us Filipinos value deeply. Whether it’s sharing a meal with loved ones, celebrating milestones, or supporting family, we’re known for our resilience, optimism, and ability to enjoy life despite challenges. However, these qualities also come with a unique challenge: finding the right balance between enjoying life today and preparing for a financially secure tomorrow.

In the Philippines, where family obligations and communal culture are at the heart of financial decisions, this balance is especially important. Here’s how you can achieve it.


1. Set Clear Financial Goals

Without clear goals, it’s easy to get caught up in immediate gratification. Instead, think about your short-term and long-term aspirations. Ask yourself:

  • What are my immediate financial needs and desires? (Travel, dining out, etc.)
  • What long-term goals do I have for my family and myself? (Education, home ownership, retirement)

Setting tangible goals helps you allocate money wisely between today’s pleasures and tomorrow’s needs.

Quick Tip: Write down your goals and prioritize them. For example, if you want to buy a house in five years, start setting aside a monthly amount in a high-yield savings account.


2. Build a “Fun Fund”

The idea of a “Fun Fund” is about setting a realistic monthly amount aside just for the things you enjoy. By budgeting for enjoyment, you can still indulge without feeling guilty or compromising your financial future.

Quick Tip: Determine a reasonable percentage (say 10–15%) of your income to go into this fund. That way, you can have those dinners out, beach getaways, or gadgets without the worry of overspending.


3. Make Saving a Non-Negotiable Habit

Many Filipinos struggle with the “bahala na” (come what may) mindset when it comes to money. But to strike a balance, saving must become a habit, not an afterthought. Aim to save a fixed percentage of your income every month, and if possible, automate your savings.

Quick Tip: Follow the 50-30-20 rule. Allocate 50% of your income for essentials (bills, groceries), 30% for discretionary spending, and 20% for savings and investments.


4. Invest for the Future – Even Small Amounts Count

Investing doesn’t require a huge amount of money upfront. Start small but start early. In the Philippines, accessible investments include Pag-IBIG MP2, mutual funds, and even stocks. By investing, you create opportunities for your money to grow over time, enabling you to enjoy life now without sacrificing future stability.

Quick Tip: Research low-cost investment options or consult a financial advisor to explore options that fit your goals and risk tolerance.


5. Protect Your Income with Insurance

Insurance is a vital part of future-proofing your finances. Health and life insurance protect you and your family from unforeseen events. For Filipinos with dependents, life insurance is essential to ensure that loved ones are taken care of in case something happens.

Quick Tip: Start with basic life and health insurance, which is affordable and has extensive coverage.


6. Don’t Let “Debt Culture” Become a Habit

Taking out loans for non-essential items, relying heavily on credit cards, or borrowing money for luxuries can be a slippery slope. If you have debt, prioritize paying it down to free up more money for savings and future investments.

Quick Tip: Limit borrowing to essentials like education, health, or building assets (such as a home). Set up a monthly repayment plan, and try to pay more than the minimum to avoid high interest.


7. Celebrate Small Wins – Mindfully

Every milestone, no matter how small, is worth celebrating. When you reach a savings target, pay off a debt, or hit an investment goal, reward yourself. This keeps you motivated while enjoying your financial journey.

Quick Tip: Treat yourself to something within your budget, like a nice meal or a day trip, whenever you reach a significant financial milestone.


8. Adopt a “Timpla” Mentality (Balance)

Achieving balance is like making a good cup of coffee – a little sweetness, a hint of bitterness, and a whole lot of warmth. Keep reminding yourself that a financially balanced life isn’t about depriving yourself but rather mixing enjoyment and preparedness in the right proportions.

Quick Tip: Revisit your goals periodically, adjust as needed, and continue to enjoy life – without compromising the future.


Remember, balance is key!

Achieving financial wellness doesn’t have to mean giving up on today’s pleasures. For Filipinos, finding balance is about being proactive with our finances while embracing our culture of joy, generosity, and family.

Be steadfast and be disciplined but still find time to enjoy! In the end, it’s about living well today and tomorrow – a balance worth striving for.

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Striking the balance between fun today and building a future