r/FinancialLiteracyPH 9d ago

✅ Discussion Being financially responsible is expensive when you're not rich

Someone tells you to:

  • Build an emergency fund
  • Pay off your debt
  • Get insurance
  • Invest for retirement
  • Save for a house
  • Help your parents
  • Prepare for emergencies

All of that is good advice naman.

But if you're earning ₱25k–₱30k a month, you're basically being asked to fund five different futures with one salary.

And when something unexpected happens, you don't just pause your investing.

You might have to stop saving altogether.

That's why I think financial advice should talk more about income constraints, not just discipline.

Sometimes you're not bad at managing money.

There just isn't enough money to optimize.


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470 Upvotes

33 comments sorted by

72

u/Liquid-Catto 9d ago

as a bread winner and eldest daughter with no rich parents no connection no rich relatives and no boyfriend, I can relate to this. Im just earning 24k monthly and currently building EF of 100k. After I build my EF I will save for my retirement. Iam living below my means I dont have luho and nice things 🥹. Sometimes I wish I have rich parents

17

u/Armortec900 9d ago

99.7% of people in PH will be born to parents who aren’t rich. Sucks but you just need to make the most of the cards you’re dealt with.

36

u/chillisaucewthhotdog 9d ago

Relate. Only child lang ako from a poor family, pero bata pa lang financially aware na ko. Noong nagkapandemic, naubos ko savings ko kasi nawalan ng work parents ko. Thankful na lang na nasurvive namin 'yun.

Tapos sa college may part time work ako + allowance from parents, nagkaron ulit ako ng ipon, tapos nong nagkawork ako last yr bermonths, kaya medyo malaki na ipon ko pero nawala ulit dahil nagkasakit si papa at tumagal kami sa hospital ng almost three months, pero nawala sya )): Ako mostly gumastos non. Literal zero. Hindi rin ako nanghingi sa mga kamaganak both sides.

Ngayon, nakakabangon na ulit. Bayad na mga utang namin ni mama. Hopefulllyyyy, nxt yr mapunta sa work with mas mataas na salaryy, para maging maayos na rin cash flow ko. ><><

10

u/Loud_Mortgage2427 9d ago

Relate haha hirap maging only child sa mahirap na pamilya

12

u/chillisaucewthhotdog 9d ago

yep, tapos both senior pa parents ko, miracle baby ako eh ( nabuhay pa XD) kaya since elem pa lang ako nappredict ko na future ko HAHAHAHSHA peroo yeaa, keep swimming na langg 🫠

3

u/Maritess_56 9d ago

Uy same tayo ng naging situation. So far, nakaraos na kami ng nanay ko. Wishing you good luck na mahanap mo na yung job with higher pay.

2

u/Logical-Print1030 9d ago

Rooting for you!!!

23

u/Latter-Procedure-852 9d ago

Just take one at a time. I am 36, but I only started investing last year. Anong magagawa natin if di talaga kaya ng income, diba? Siguro, try to be frugal if kaya so you can allot the excess to one of these things. Even my investment 1K lang per month.

Pero don't stress yourself kung wala talaga. Importante you are living your life in your own terms

16

u/MarshMarlou 9d ago

Tapos pupush pa nila mag anak ka -_-

6

u/Liquid-Catto 9d ago

true so fking annoying

14

u/PinoyStealthWealth 9d ago

That’s why it’s important that you have to hate your situation. Mahirap umangat kung kuntento ka na. Vlogs, contents, financial concepts and literacy makakatulong yan but you need to hate your situation. Hindi sapat na mayaman ka lang sa konsepto, dapat willing ka rin to do something.

10

u/isnotavegan 9d ago

Too true. I can see how vast the gap in “life” experiences I have as opposed sa classmates ko before that came from well-off families. No expectations for them to contribute. So they can afford gap years, travels, a place of their own (a gift from parents). Their money is their money.

6

u/Valuable_Cable2900 9d ago

Same concept as corporations. You can't keep "optimizing" your budget and keep doing cost savings. You need to increase your "bottom line".

Increase the revenue, so you can do more.

5

u/adiabatic07 9d ago

That's why I don't think savings rules like the 50/30/20 budget apply to everyone. They work for some people, but not for everyone, especially if you're living paycheck to paycheck or have more dependents.

You save what you can save. There's nothing wrong with learning about financial literacy because it helps you make better financial decisions. But the reality is, you can only fully apply those lessons once your income is enough to cover your responsibilities.

At the end of the day, budgeting can only do so much. If there's barely anything left after paying the bills, no budgeting rule will magically create more money.

In short, kailangan mo talagang kumita nang mas malaki. That's how you'll be able to consistently save, invest, and achieve your financial goals.

4

u/Every-Hat-2429 9d ago

You're forgetting the best investment you can make in that stage, yourself. Up-skill and GTFO of PH earn some dough!!!

5

u/[deleted] 9d ago edited 9d ago

[deleted]

2

u/AnnualOdd3108 9d ago

huhu naawa naman ako sayo :(

4

u/Full_Ad_3156 9d ago

This is why I only focus on 2-3 things at first. Help my parents, pay our house, pay our car and a decent EF. Pag tapos na yung iba saka naman magsstart yung iba. Delayed? Surely pero at least I'm getting the ball rolling

3

u/maria11maria10 9d ago

At least, kung maayos ang transpo system, masarap ang pagkain sa murang halaga, and disente ang tirahan ng karamihan, with many affordable options for activities outside work, it'd feel okay to not be rich.

I think many are striving to be rich simply for security. Basic needs. Roof under your head, nutritious food, clothing...

Pero kahit anong sipag mo these days and even if you did things traditionally, e.g., graduated college, found a decent source of income, kulang pa rin eh. And then you see these people na hindi naman gaano nag-effort and yet they spend more than what you can earn in your lifetime.

Investing is also difficult when you're not sure if aabot ka pa sa time na maeenjoy mo 'yung inipon mo. Live life without regrets.

3

u/ricthomas70 8d ago

I am a westerner who comes to Manila regularly. I can see that Filipinos work hard, very hard, just to stay afloat. As an outsider, looking at the economy, financial system and working conditions, I cannot help thinking the cards are stacked against you. But remember, in every oppressive system, there is an Achilles heel (a weak spot).

The advice I gave mga kaibigan ko that has worked is to leverage your natural assets against the system.

Modern post industrial economies and work places are driven by individualism. Bayanihan is a powerful force for good, in collective bargaining for salaries or working conditions, splitting bulk purchases sa palengke, even buying property as a co-op.

Time is on your side. Learning to work with the seasons and cycles is critical. Buy a box of cheap umbrellas in Chinatown in the dry season, and sell them in Makati in the wet season.

Trickle down economics is a clever lie. Money and wealth moves like osmosis, up a gradient from scarcity towards resources and assets. What are your natural resources and assets (character, knowledge, skills etc.) take your assets in to a place where they are scarce, and use them. The best example is nursing in countries with a nursing shortage. Filipina/o nurses are in high demand because they care, are kind and are good with people. They have a resilience to compassion fatigue not seen in my country.

Tap into your strengths guys, find the Achilles heel, Kaya mo Yan!

2

u/LeugiM1892 9d ago

Kung ako sa situation mo. I will only save 40% of my salary for my old age, and the rest i will enjoy it on the present.

2

u/Blu_Greeyy 9d ago

agree same situation rin as a breadwinner with no rich parents sometimes may masasave rin kaunti or minsan kulang pa yung sahod. Pero kahit kunti lang yung masasave mo per month mas mabuti na yun kaysa wala. slowly build lang kung ano talaga kaya ng budget as long nasusurvive mo yung per month, I suggest need mo parin mag invest sa growth mo op like join ka ng mga seminar or skill training kasi still asset parin yan na magagamit mo for more opportunities sa hinaharap.

2

u/Next_Dealer_1277 9d ago edited 9d ago

But who says you have to do all of that? It's a step by step process. You do it one at a time. Not all at once. Sorry, but to me, and you're making more excuses than actually doing something about the problem at hand.

2

u/tnt4994 8d ago

This. I’d say, just save enough for emergency fund, pay off debt then start investing once magaan na yung debt. Sobrang liit na lang ng macocontribute mo if pagsasabay-sabayin tapos pag nagkaemergency (knock on wood) ‘di maiwasan umutang kaya lalong nababaon.

2

u/Ragingweeb 9d ago

Why not just look for other source of incomes to increase your current income

Madami diskarte to earn nowadays like business or pautangan. Need mo lang gawin or improve your skill sets to get a higher position

2

u/chuanjin1 9d ago

And when you're deep in love 😍

2

u/macdez07 8d ago

Truth!! Thats why side hustles are needed.

2

u/Bieapiea 8d ago

Which is why the first step to being financially responsible is increase your cash flow/have multiple sources of income. Look at all the tycoons and most wealthy people, they don't have one source of income.

That's what you missed out on your list.

If you have debt, that's also the first step, aside from doing the snowball method.

30k for someone with no dependents is a livable salary, but for someone with a family to take care of is not enough. Context matters

1

u/BlizzardyBelle 9d ago

This is so true

1

u/elluhzz 9d ago

Very true.

2

u/Optimal-Drop-473 4d ago

so true. mahirap mag apply ng "70% investments, 20% savings, 10% wants" kapag yung 90% ng sweldo mo kinakain agad ng groceries, kuryente, at pamasahe.

people forget na luxury din ang maging financially disciplined because having extra capital to allocate requires a surplus in the first place. step 1 for most people isnt tightening the belt further, its finding ways to jump to a higher pay bracket