In a world brimming with financial advice, Filipina women often find themselves at a crossroads, unsure of where to start or whom to trust. While many money experts talk about investments, fewer address the common mistakes that could derail a woman’s financial journey. Cheska Sarausad-Arcangel’s article You’re Doing It Wrong: 7 Financial Planning Mistakes The Traditional Filipina Woman Makes is a timely reminder that success in personal finance isn’t just about making the right moves—it’s also about avoiding the wrong ones. By learning from these mistakes, Filipina women can pave their way to financial freedom with confidence and empowerment.
1. Investing in Knowledge: Your First True Asset
One of the biggest financial mistakes many Filipina women make is neglecting to invest in their own education. While success stories are inspiring, they often showcase only the highlights, leaving out the process and the tough lessons learned along the way.
Inspiration Tip: Commit to learning—not just by reading from one source but by actively seeking a variety of perspectives. Know your risks, understand your budget, and chart your timeline. Knowledge is the foundation that will help you make informed decisions that truly benefit your life and financial goals.
2. Mastering the Art of Assets vs. Liabilities
Do you really get the difference between assets and liabilities? In simple words, assets are things that put money in your pocket, and liabilities take money out. It is quite easy to think that all that we own is an asset, but many times, what may seem valuable is just a liability in disguise.
Inspiration Tip: Start by assessing your belongings. Is that expensive lipstick an asset or a liability? If it serves your work, like enhancing your skills as a makeup artist or a beauty influencer, it’s an asset. If it’s a purchase that doesn’t contribute to your income, it’s a liability. The key is to increase your assets and minimize liabilities. Financial independence begins with this awareness.
3. Reviewing Your Financial Plan: A Yearly Ritual
Many women fall into the trap of acquiring assets and then forgetting about them. A financial plan is dynamic and must evolve as you go through different life stages.
Inspiration Tip: Take time to review your financial status annually. Make it a celebratory ritual around your birthday month to reflect on how far you’ve come and set fresh goals. A regular check-in ensures that your financial strategy stays aligned with your long-term goals, and it’s a great way to keep your finances fresh and relevant.
4. The Myth of One Magic Asset
It’s tempting to believe that one asset will solve all your financial worries, but this is a dangerous misconception. Financial success requires a balanced mix of assets, each serving a different purpose, catering to various budgets, timelines, and risk levels.
Inspiration Tip: Think of your financial portfolio as a carefully curated wardrobe—invest in a variety of assets that suit your financial goals and personal comfort level. Whether it’s bonds, stocks, mutual funds, or real estate, the key is to diversify to reduce risk and enhance returns.
5. Researching the Investment Provider: Beyond the Returns
Chasing returns without doing your homework can lead to disappointment and even financial loss. It’s crucial to understand the company or person offering the investment opportunity—because not all that glitters is gold.
Inspiration Tip: Before committing, ask yourself: What level of involvement is required? What is the company’s track record? How well do you understand the investment and its risks? Remember, if an offer sounds too good to be true, it probably is. Trust your instincts, and ensure that any investment aligns with your goals and risk appetite.
6. Budgeting: The Foundation of Financial Success
One of the most common barriers to investing is not having a clear budget. Without a budget, it’s nearly impossible to prioritize savings or investments.
Inspiration Tip: Start by tracking your income and expenses, and create a budget that suits your financial situation. Whether you prefer using a spreadsheet or a budgeting app, the goal is the same: to give your money a clear direction. Once you master budgeting, the freedom to invest will follow.
7. Encouraging Financial Literacy at Home
Financial independence isn’t a solo journey—it’s a collective effort. If those around you are not financially literate, it can affect your goals, especially in a household where multiple adults depend on each other.
Inspiration Tip: Share your knowledge with the people closest to you. Encourage family members to learn about budgeting, saving, and investing. When your loved ones are also working toward financial independence, your success becomes a shared victory.