April Fools’ Day is all about harmless pranks and jokes, but when it comes to money, falling for financial myths is no laughing matter.

 

 

Managing money wisely is crucial for financial stability and long-term success. However, many Filipinos still fall victim to common financial myths that prevent them from building wealth and achieving financial independence.

 

 

Let us debunk these misconceptions.

 

 

1. Saving Money in the Bank is Enough to Grow Wealth

 

 

Keeping all your money in a savings account won’t make you rich. Bank interest rates are typically lower than inflation, meaning your money loses value over time.

 

 

2. All Debt is Bad

 

 

Not all debt is bad. Good debt such as a business loan can help you build assets and generate income.

 

 

3. Investing is Only for the Rich

 

 

There’s a common misconception that investing requires a lot of money. The truth is, you can start investing in stocks, mutual funds, or Unit Investment Trust Funds (UITFs) with as little as Php1,000. What’s important is to start early and invest consistently.

 

 

4. Insurance is an Unnecessary Expense

 

 

Many Filipinos see insurance as an extra cost rather than a necessity. However, life and health insurance protect you and your family from unexpected financial burdens.

 

 

5. SSS or GSIS Pension Will Be Enough for Retirement

 

 

The highest SSS pension when doing a quick search is around Php20,000 and the minimum is around Php2,000. Imagine trying to survive in the year 2050, you are 60yrs old, and you are just receiving Php5,000 monthly.

 

 

6. Having a Job Means Financial Security

 

 

If you check on the news, companies are laying-off employees like it is getting out of style. Add AI in the mix and this trend will continue for years to come.

 

 

7. When You Get Rich, You Should Support Your Entire Family

 

 

I've seen and experienced this first hand and it is a very difficult place to be into. While helping loved ones is noble, setting boundaries is essential to avoid financial strain. Prioritize saving and investing before offering financial assistance.

 

 

8. There’s Always Time to Save Later

 

 

We Filipinos delay saving because we believe we have plenty of time. Refer to point #4 and #6 to conclude that this is not entirely true. Starting early allows your money to grow through compound interest. The earlier you save and invest, the easier it is to achieve financial independence.

 

 

 

Closing Thoughts

 

This April Fools' Day, don’t let money myths fool you. Educate yourself, invest wisely, and build the financial future you deserve.

 

 

 

What you should do today

 

 

 

 

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