IT’S the time of the year again where people joyfully welcome new beginnings. For most Filipinos, we are fond of making our “New Year’s Resolution” as an expression of our dreams and aspirations for the whole year. Typically, the long list never fails to include health and fitness, relationships, school and career. But among these array of goals, what noticeably stands out the most especially to the “masa” is the underlying desire to have if not the best, then a better and healthier financial condition.
In my countless encounters with hundreds of people and friends advising them on financial matters, one of the main questions I ask them is, “What are your financial goals at the start of the year?” In all honesty, more than half of these people do not have a clear goal in mind; and by clear, I mean the specific figures and timeline to achieve the financial goals they have.
Simply put that over the years, most Filipinos have become so accustomed to welcoming New Year with only a “wishlist” in their mind, but without a sound financial plan.
This is where the gap lies; the tipping point that makes a huge difference at the end of every year if there is a change or improvement at all in one’s manner of handling finances. The reason why it is important to go beyond our wishful thinking during New Year and start plotting the financial plan is because, it is the plan that propels you on how to move forward with your year. Without a good financial plan, Filipinos’ dream of having a better financial future will always remain a wishlist every new year.
Whether at the end of the year you wanted to become rich, very wealthy, or just financially stable or get off from your debts, the size of your goal does not matter as every person have their own unique measure. What matters is how you will get there—which you can only do so if you have a plan. Because after all, no matter how great your intentions are at the beginning of the year, it becomes insignificant if not complemented with realistic actions. The challenge for most Filipinos, and this goes beyond finances, is to step up from the “wishful thinking” mentality to an action – oriented attitude.
Whenever I am invited to talks with a large crowd, one major barrier they perceive is that Filipinos are not used to financial planning. What comes after is the question on how one makes a good financial plan. Money matters have been a taboo back then in the Philippines, and it is purely understandable if majority are not capable enough in this aspect.
While it is good to note that financially literacy drives have become more aggressive today, one simple but often underestimated way of practicing financial planning is through writing. Surprisingly during my recent talks, half of the people who raised their hands affirming that they have “financial plans” for the year, were slashed into a quarter whenever I ask if they can show me a written plan. Simply put, most people only have an “idea” of how they will go about their finances, but they do not really have a solid plan as their guide.
For one to consider sincerely its own financial planning, writing it down is the basic golden rule. Even successful people I have known bring small notebooks everytime. For ideas to not slip their minds away, writing it down is a surefire effective way. The same goes with financial planning; especially that when you plan, you have to be as particular as you can be. Not writing it down increases the chance that there will be some details you might forget or overlook through time.
The next big challenge for Filipinos who wanted to commit this year to a better financial condition, is to practice Financial Planning by writing it as many times possible. One can start with having an inventory of its income and expenses and move forward with listing down what are the things one wishes to improve, matched with ways on how to improve it. With all the resources available online and active financial advocates in the country, it is nearly possible to start the year the right way. As they say, if there is a will, there is always a way.
It may be a long road for the Philippines to reach the peak of a financially literate society, but with one step at a time, Filipinos should confidently accept the challenge.
In 2020, I dream of Filipinos boldly starting their journey to financial freedom through a better financial plan.