by Cheska Sarausad – Arcangel

There is no shortage of “money gurus” out there asking you to dabble in this investment or that investment, but nobody tells you about mistakes you want to avoid. Knowing what not to do is just as (and sometimes even more) important than knowing what to do and this is especially true when you are talking about money and investments. Find out the biggest financial planning mistakes traditional Filipina Women make and know how to avoid them.

Mistake #1 : Not investing in your own constant learning. 

While modeling someone else’s success story has its pros, Filipina women often forget that even success stories only show the highlights. Do your own research and see what works for you.Know what risks you’re willing to take on. Know your budget, timeline, and success metrics.

Invest in knowledge. The more you know, the better you understand which investments are actually beneficial for you and which aren’t.  Research on different types of investments. Don’t just read from one source, but several, and make your own assessments.

Do this: Ask for advice, but do not ask salesmen because they are trained to only show you the benefits. Instead, ask customers. Ask about their experience, how they understood their investments, what returns they are experiencing. That way, you will get the real pros and cons.

Mistake #2 : Not thinking in terms of assets and liabilities. 

Simply put:  assets put money in your pocket,  and liabilities take money from your pocket.

While having some liabilities is inevitable, making sure you have more assets than liabilities is completely doable. Do this by assessing what you have and know which is which.

There is no one way to categorize what we have. In fact, an asset to one is a liability to another.

For instance, would another tube of lipstick be an asset to you or a liability? That depends. If it’s not ~eventually~ profitable to you, then it’s a liability. But, If you’re a make-up artist or a beauty blogger, then it becomes an asset.

Do This: The goal is to increase your assets and manage your liabilities. To know your actual financial wealth subtract your liabilities from your assets.

In short, the less liabilities you have, the more financially independent you become.

Mistake #3: Not reviewing your financial plan.

You will go through different stages in your life and this will require you to add or subtract to your existing list of assets and liabilities. One grave mistake most Filipina women make is acquiring an asset and forgetting about it.

Do this: Review your assets annually. Make it easier to remember by doing this on your birthday month! Make sure it’s still up to date with your goals and always check if there are better options available in the market.

Mistake #4: Thinking one asset will solve all problems. 

No matter what other people tell you, there is simply no one financial asset to invest in that is superior to the other. There are many kinds and they will serve different purposes, have different timelines, cater to different budgets and have different levels of risk.

You can invest in bonds, stocks, mutual funds, a business, real estate, and others, but it is highly unlikely nor advisable that one asset will solve all your financial needs.

Do this: Make a table comparing the list of assets and their features against your priorities to come up with a mix of products that takes your own financial goals into account.

Mistake #5 : Looking mostly at returns without doing a background check on the investment provider and their product.

Returns are just half of the equation, and usually comes at the end of your financial journey.

Do this: Before jumping in an investment, whether a business opportunity or a financial product, ask yourself:

1) What is my level of involvement?

2) What is my time frame?

3) How long has the company been around, and how has their performance been so far?

4) How many people do I know have experienced success with these products or business opportunities?

5) How can I actualize my returns later on?

6) How much do I know about the business and its risks?

The answers to the questions above should help determine not only if an investment is worth making, but if the provider is a trustworthy one as well. The last thing you want to happen is lose your money along the way because you were too hopeful on the returns on an obviously shady provider.

If it’s too good to be true, it probably is. What is too good to be true? When an investment has no risk, has never had a bad year, or claims to be low risk and high return.


are just half of the equation,
and usually comes at the
end of your

financial journey.

Mistake #6: Not having a budget and sticking to it. 

It’s hard to set aside money for investing if you can’t anticipate what you’ll have left after your bills arrive.

Do this:Take an honest look at your income and expenses, and draft a budget to guide your spending. After that, there are only 2 ways to do it: 1) increase your income, or 2) decrease your expenses.

Your choice will depend on your current skill level, available time and opportunities. If you are unhappy about your current situation, drafting a budget is a good objective assessment which hopefully propels you into action. There are many free budgeting apps like Spendee and Money Lover you can use on your mobile device, but a good old spreadsheet works too. Once you get the hang of it, budgeting will come second nature to you, and you may no longer need it later on.

Mistake # 7: Not encouraging the people around them to prepare their own financial plan. 

In a household of 4 working adults, if only one is working on his financial plan, the other 3 may end up becoming liabilities. The fastest way to ruin your attempt to be financially free is by not encouraging the people around you to learn, save, and invest as well. 

Do this: Introduce the concept of savings and investments to your family using examples they will understand. When we’re in a pinch, we often borrow from family first, and friends next. If you’re the one lending, your own financial goals might be side tracked. Your financial independence will be easier to achieve if the people around you are working on theirs too.

Have you encountered any of the Financial Planning mistakes we have identified? Don’t worry, your financial journey is a process. It is important to take it one day at a time and not to obsess over it. Thanks for reading this far, and cheers to your financial success!

Cheska Sarausad - Arcangel
Cheska Sarausad - ArcangelFinancial Advisor

Did this resonate to you? Or think someone will? SHARE IT.

Want to share your thoughts? Get in touch with us.