25/05/2025
🚨10 Things You NEED to Do to Build Wealth in the Philippines
1. Avoid the High-Interest Car Loan Trap
Why: New cars in the Philippines depreciate fast, and many banks offer loans with high interest rates.
Action: Consider buying a well-maintained secondhand car or use public transport, carpooling, or even motorbikes to save money.
2. Eliminate Credit Card Debt
Why: Most credit cards here charge 2–3% monthly interest, equivalent to 24–36% annually. That’s a huge drain on your income.
Action: Pay off high-interest debts using the snowball or avalanche method. Avoid unnecessary swipes and explore 0% installment promos wisely.
3. Build and Maintain a Good Credit Score
Why: A strong credit standing helps you get approved for business loans, car loans, or a home loan from banks or Pag-IBIG.
Action: Always pay on time, keep your balances low, and request your credit report from accredited credit bureaus like CIBI or TransUnion.
4. Grow Your Retirement Fund Early (PERA, MP2, Mutual Funds)
Why: Time is your greatest ally. Government-backed programs like PERA and MP2 offer tax advantages and better returns than savings accounts.
Action: Contribute monthly, even small amounts, and let compound interest work for you over the years.
5. Maximize Government & Employer Contributions
Why: SSS, Pag-IBIG, and PhilHealth are often matched by employers, it’s money you’re entitled to.
Action: Make sure your contributions are updated. Consider voluntary contributions or top-ups to MP2 or PERA if self-employed.
6. Surround Yourself with High-Achieving People
Why: Your circle can influence your financial habits and open doors to better opportunities.
Action: Join industry groups, attend financial literacy events, or join online business communities like Negosyo PH or Freelancers Hub PH.
7. Create and Stick to a Budget
Why: Without a plan, your income will disappear before the month ends, especially with impulsive Shopee and Lazada checkouts.
Action: Use apps like GCash’s budgeting feature or Spendee. Categorize expenses and trim down non-essentials.
8. Build a Second Source of Income
Why: Relying on one income source in the Philippines isn’t safe, costs are rising, and jobs aren’t always secure.
Action: Start a small business, do freelance gigs, sell online, or invest in dividend-paying stocks like those from the PSEi.
9. Invest in Yourself First
Why: Your greatest asset is you. Self-growth boosts your earning potential.
Action: Read finance books (e.g., “I Wish They Taught Money in School”), watch educational YouTube channels, and take online courses from TESDA, Coursera, or Filipino content creators.
10. Prioritize Monthly Investing (At Least 10%)
Why: Consistent investing builds long-term wealth, even more than saving alone.
Action: Start with mutual funds, MP2, or invest in real estate. Automate your investments and increase the percentage as your income grows.
Disclaimer: Always consult a licensed financial advisor for advice that fits your personal situation.
