For many Filipinos, financial freedom is more than a dream. It’s the hope of a life without constant money worries, one where you can support your loved ones, pursue personal goals, and retire with peace of mind. Yet, as inspiring as the idea sounds, reaching that point is not always simple. Day-to-day challenges and circumstances beyond your control can stand in the way. You can also be held back financially by habits that are hard to break.
The good news is that you’re not alone in this struggle, and there are strategies that you can adopt to improve your chances of success. By understanding what keeps you from achieving your goal and taking practical steps to address them, you can also make steady progress toward the financial freedom you’ve been working hard for. Let’s take a look at the common obstacles that you can face while pursuing financial independence.
1. Living Paycheck to Paycheck
Saving can feel impossible when your income barely covers rent, food, utilities, and other basic needs. You might find yourself waiting for payday just to settle bills, with little left over for emergencies. This cycle can be stressful and discouraging.
How to overcome it: Start with visibility. This means tracking every peso you spend for a month. You may be surprised by how much of your funds go towards non-essentials like daily milk tea runs or unplanned online shopping. With proper tracking through apps like EasyWay by EastWest and budget planners, you can cut back on costs and take better control of your finances. For instance, setting aside just PHP 100 a day adds up to PHP 3,000 a month. That amount of money, in turn, can go to your EastWest savings account or seed an emergency fund. Even if it feels small, the act of setting aside something builds momentum and gives you breathing room.
2. High-Interest Debt
Payday loans or informal lending schemes can eat away at your income with their high interest rates. Soon, you’re paying more for interest than the actual amount you borrowed.
How to overcome it: Pick a repayment strategy that works for you. For example, the avalanche method means targeting the debt with the highest interest rate first, saving you more money in the long run. The snowball method, on the other hand, focuses on clearing smaller debts first so you can build confidence and momentum. Imagine how freeing it would feel to close one loan account and redirect those monthly payments toward the next one.
3. Lack of Financial Literacy
Money doesn’t come with a manual, and many Filipinos learn about handling finances only after making costly mistakes. Without the right knowledge, you may fall for get-rich-quick scams, miss opportunities to invest, or feel overwhelmed when faced with financial jargon.
How to overcome it: Make learning part of your routine. You can listen to a 10-minute finance podcast during your commute or join a free webinar from your bank. If you linger on social media platforms, follow reputable personal finance blogs. Even small doses of financial literacy lessons add up. Think of it this way: the more you understand, the fewer chances there are for your money to slip away unnoticed.
4. Not Setting Clear Goals
It’s hard to stay motivated when your financial goals are vague. Saving “for the future” sounds good, but without specifics, it’s tempting to dip into your savings for every short-term want.
How to overcome it: Have clear and concrete financial objectives. Instead of “saving for emergencies,” aim for “building a PHP 50,000 emergency fund within two years.” Instead of “wanting to retire early,” decide on the age and amount you’d like to have. Having a clear picture in mind makes it much easier to resist impulsive spending.
5. Lifestyle Inflation
You get a raise, and suddenly your meals, gadgets, or weekend activities all get more expensive. It feels like you deserve it, and in some ways, you do. However, keep in mind that if your expenses rise as quickly as your income, you’ll always feel stuck at the same level.
How to overcome it: Rather than simply going with the flow, be intentional with how you upgrade your lifestyle. Instead of spending the entire salary increase, commit part of it to savings or investments. For example, if you get a PHP 5,000 monthly raise, try allocating PHP 2,500 toward your financial goals. This will let you still enjoy an improved lifestyle while ensuring your future self benefits.
6. Economic and External Pressures
Life doesn’t always go as planned, and a sudden illness, job loss, or even rising prices can throw your budget into chaos. These challenges are often out of your control, but the way you prepare for them makes all the difference.
How to overcome it: Before a crisis hits, you need to build a cushion against uncertainty. Start by setting aside three to six months’ worth of expenses in an emergency fund. Insurance is also a practical safety net, as having health coverage can save you from draining your savings during medical emergencies.
7. Lack of Patience and Consistency
Financial freedom doesn’t happen in a year or two for most people. The slow pace of saving and investing can feel discouraging, especially when social media makes it seem like everyone else is “making it” overnight. Some people give up halfway or chase quick wins that only set them back.
How to overcome it: Focus on building steady, consistent habits. Use tools to make it easier to transfer funds to your savings account, for instance. This way, you’re not tempted to spend first and save later. Celebrating milestones, no matter how small, helps too. For example, when you pay off your first loan or hit your first PHP 10,000 in savings, treat yourself to a simple reward like a nice dinner at home. Recognizing progress helps you stay motivated for the long haul.
Financial freedom may seem elusive for many people, but it’s not impossible. Each obstacle you overcome is proof that you’re moving in the right direction. Now, what works for one person may not work for another, so the key is to find an approach and a banking partner that fits your circumstances and values. To get started, check out EastWest’s financial products and services to see solutions that can fit your lifestyle and goals. With patience, discipline, the willingness to learn, and the right tools, you can slowly but surely create a financial future where you feel empowered to choose the life you want to live.
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