5 Things You Shouldn’t Be Spending Your Hard-Earned Money On

One of the benefits of having a job is that you get to earn money and use it the way you want. You’ve worked hard for your salary, so it’s only natural that you’ll spend it on your needs and wants. Still, even with the freedom to spend as you please, not every purchase is worth your money. There are plenty of tempting offers that may seem harmless or even exciting at first but can quietly and quickly drain your finances. As such, being aware of these traps can help you make smarter financial decisions and protect your hard-earned cash. With that in mind, here are some common spending pitfalls to watch out for.

Risky Informal Savings Setups

Many Filipinos are drawn to informal savings schemes because they promise higher returns than traditional banks or cooperative programs. Examples include unvetted paluwagan schemes, or community-based rotating savings groups that pool money from members and distribute the total to one person each cycle or when needed. While these setups can feel friendly and convenient, they carry significant risks. Unlike regulated banks or government-backed savings programs, these informal setups lack legal protection. If the organizer mismanages funds or disappears, participants could lose everything and have a difficult time financially recuperating from such a loss.

For safer options, consider placing your money in deposit accounts offered by trusted financial institutions like EastWest. We offer a range of savings products, each with flexible terms and competitive interest rates. For instance, our regular savings account allows easy access to your funds while earning interest. Our SuperSaver product, on the other hand, is a tiered deposit account that grows your money faster when you maintain higher balances. Moreover, as a regulated bank, EastWest ensures that your deposits are protected, providing you with a more secure and safer way to build your wealth.

Get-Rich-Quick Schemes

Get-rich-quick schemes prey on the desire for instant wealth, and unfortunately, they’re increasingly prevalent online. From social media ads promising high returns in a few days to pyramid-style investment programs, these scams target people looking for shortcuts to financial freedom. One of the reasons why these schemes are so effective is the manner of their delivery. Scammers often use persuasive techniques, like showing fake success stories, offering limited-time “exclusive” opportunities, or pressuring victims to invest immediately. These tactics create a sense of urgency that leads people to act without thinking.

Therefore, it’s wise to approach any offer with skepticism. If it sounds too good to be true, it’s probably a scam. Legitimate wealth-building takes patience, planning, and consistent effort, something no shortcut can replace. Instead of chasing instant gains, focus on investments that grow your money steadily and securely.

EastWest provides a variety of regulated investment options that cater to the needs of first-time investors and experienced individuals alike. Our Unit Investment Trust Fund, for instance, allows your money to grow through professionally managed portfolios, making it an excellent choice for beginners or those with limited time for market monitoring. Another option is our Fixed Income Securities, which offer stable returns and lower risk, making them ideal for conservative investors. Whatever your investment style, EastWest ensures that your funds are handled responsibly, giving you peace of mind.

Dubious Online Influencer “Business” Courses

In recent years, social media has exploded with influencers promoting “business” courses promising financial freedom in weeks or months. Many of these programs are expensive and offer little actionable knowledge beyond general tips you can already find for free online. Although they may seem convincing and professionally packaged, these courses are rarely regulated or backed by proven results. Because of this, participants often spend thousands of pesos only to find that the content is basic, outdated, overly generic, or even false. 

To avoid falling into this trap, take the time to research before enrolling in a course. Spending a few minutes reading reviews or asking past participants about their experiences can save you from wasting money. You should also choose courses recognized or accredited by the government or educational institutions, as this guarantees a minimum standard of quality and legitimacy. Finally, check if the syllabus and content of the course justify its price. This ensures that you’re getting real value for your investment and not paying for empty promises.

Unhealthy Vices

Smoking and drinking may provide temporary pleasure, but if indulged excessively, the long-term cost to your wallet can be significant. A pack-a-day smoker, for example, can easily spend thousands of pesos a month, and this money could have been redirected toward more productive uses like savings or investments. Beyond the financial toll, unhealthy habits can also lead to medical expenses. Due to increased risks of chronic illnesses such as heart disease, liver problems, and respiratory conditions, treatment and regular check-ups can become costly.

Cutting back, or quitting entirely, not only improves your health but also frees up money that can be invested in more productive ways. For instance, reallocating what you spend on these habits toward a savings account can steadily grow your wealth. Over time, these small changes can add up to substantial financial and personal benefits, making a meaningful difference in your well-being.

Online Sugal and Other Forms of Gambling

Online gambling, including sports betting, casino apps, and lottery platforms, has become increasingly accessible, and with it comes the risk of significant financial losses. The convenience of playing anytime, anywhere makes it easy for people to spend more than they can afford, often chasing losses in a cycle that can be difficult to break. Gambling is particularly risky because the odds are almost always stacked against players, meaning that most participants will lose money over time. 

That said, it’s wise to avoid gambling altogether so that your money and financial goals remain protected. If the temptation to play arises, consider alternative recreational activities that provide entertainment without the potential for financial harm, such as hobbies, sports, or social outings with friends and family.

While earning money gives you the freedom to spend as you choose, being mindful of where it goes can affect your financial stability in the future. A lot of offers can be unnecessary or harmful, and as such, evaluating your options carefully is important. When you’re aware of the common spending pitfalls, you can use your income in a more strategic and purposeful way, ensuring that your hard work truly pays off.