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“I believe that through knowledge and discipline, financial peace *(freedom) is possible for us—all of us.” —Dave Ramsey
This coming June 12, we are again celebrating and commemorating our Philippine Independence Day. We remember how our forefathers fought hard for Filipinos to gain liberty from captivity and slavery. Fast forward to 2026, we still find most Filipinos struggling and fighting not necessarily for physical freedom but freedom from poverty and financial woes caused by lack of knowledge, poor governance, corruption and political deception and manipulation. Unfortunately, the people who were elected and given the power to liberate them are the very people who caused and led them to their misery. The sad truth is, if they wait and depend on these officials, they will never achieve the financial independence they deserve.
Does this mean then that financial independence is an impossible dream for most Filipinos? Is it only available for the few moneyed Filipinos? How about those who only live on paycheck-to-paycheck, where every penny is spent as soon as it is earned just to cover the essential needs? Can they still aspire for and achieve financial freedom?
Achieving financial independence is not just about having wealth and lavish lifestyle but about having the freedom, options and peace of mind to live the lifestyle of your choice. It’s personal as only you can determine the standard and when you have achieved it. While it may be challenging, still it can be reached through conscious, disciplined and consistent efforts. In short, every Filipino can still work towards realizing their own financial independence. Start with the right mindset and build the correct money habits.
Tracking your monthly expenses is the first important thing to do. Having a clear idea on how you are spending your money, where your money is going and where you can make cuts gives you a head start. How much of your income is spent on the NEEDS (essentials) and how much on the WANTS (non-essentials)? As we can only cut as much on our needs, focus should be on adjusting the budget on our wants. Instead of frequently eating out, enjoy more cooked meals at home. If you’re spending at least 1000 on Shoppee or Lazada, lower it to half. Smoking 5 sticks of cigarettes a day, try smoking less. The few pesos saved from adjusting your non-essential expenses can be your starting point in building your savings program.
Determine the amount to save. However, instead of determining how much you should save, know the amount you can consistently save even during your worst months. Usually the problem is we aim for ideal numbers to save but only to realize later that we cannot sustain it, then we stop saving. Remember, at this point, the amount is immaterial. What we are developing is the habit of saving. If it’s P100/month, then start with it and do it consistently. Once you have developed the habit, it is easier to up the ante later on.
Separate the money immediately. Create different accounts, one for your payroll/expenses and one for your savings. This will prevent you from spending all your money at once. When doing this, follow the formula: Income less Savings equals Expenses. Treat savings like your other monthly bills that are non-negotiable and non-optional. Look for available platforms that will allow you to automatically transfer from your payroll account to your savings account even before you access your salary. Otherwise, you will never have money left for savings. Money that is kept together, is spent together.
Build your protection savings. Once you have developed the habit of savings, start building your protection savings that will secure your hard-earned money from life’s uncertainties and emergencies. Your first line of defense is an emergency fund, which is cash reserves equal to 3-6 months of your monthly expenses. When you can already afford, get medical and life insurance (start with minimum then regularly upgrade). These will your protect your main savings from unforeseen medical, home or job-related twists and turns.
Create multiple sources of income. With the rising cost of living, having one source of income no longer works, especially if it is just enough for the basic needs. We need to have an extra income. Whether it’s through a second employment, or a small business, an online/digital service, or backyard economy, what matters is you have additional earnings.
Turn your skills, talents, passion into income generating activities. I know a lot of men/women who after their day jobs, turn themselves into sales people (from insurance to real estate to food stuff), virtual assistants, handymen, TNVS drivers, riders or entertainers. If we will really look for one, there are many income opportunities available for us.
Watch out for lifestyle inflation. A common culprit preventing many from achieving financial freedom is the tendency to increase one’s spending as one’s income increases. Have you ever wondered why despite your salary increase or promotion, you’re still not able to save? It’s because when you get a raise or promotion, previous luxuries (like dining out, buying branded shoes or taking vacations) now become a necessity. Instead of increasing the ante on savings, we increase our expenses. Some would reason “ I deserve that reward for my hard work”. No debate on that. The question is when do you avail of that reward: now or later, when you will really need it. Ever noticed how the billionaires keep their modest lifestyle despite their wealth?
The above are not rocket science. Every Juan or Pedro can do them. Again, working towards your personal financial independence does not require you to have that big amount of money to start with. We have seen this work in several rags-to-riches stories. They just had discipline, hard work and commitment when they started. You may not have found your own happy ending yet but you can start writing your own story now. Because every Filipino deserves to have financial independence.
