A Money Moment With Pearl From iMoney

A Money Moment With Pearl From iMoney

You must gain control over your money or the lack of it will forever control you. — Dave Ramsey

Whether it’s money in a relationship or business and even for day-to-day survival, many Filipinos don’t really think about money until they are nearly running out of it.

However, it is by taking control of your money that gives you the best shot at gaining financial independence.

iMoney Philippines Country Manager Pearl Gonzales has firsthand experience helping many Filipinos seeking financial products when they come to our website to look for services like credit cards and personal loans.

Here is some money management wisdom from Pearl gathered from her public interviews that you can apply in your daily life. 

Managing money in a relationship

“An open financial discussion with your partner will definitely transform  your relationship, making it stronger and better.”

Did you know that money is the number one source of stress for most relationships?
It’s also the second cause of divorce next to infidelity. It can be a make or break factor for a couple. Does money really matter when you’re looking for a lifetime partner? It’s basically one of the non-negotiables – you should both be aligned when it comes to finances. 

Pearl’s pro tip for dating couples

When do you know if it’s the right time to have that discussion? If you’re in a serious relationship and looking to settle down, initiate the discussion even when you’re still dating. In the early stages of a relationship, opening up about this subject may seem intrusive, but it’s one way to gauge if your financial priorities can click. 

By having this conversation, you’ll find out early on whether or not you’re financially compatible. 

How to open up this discussion

“Set the right timing, set a mood that’s free from judgment to promote honesty and transparency about each of your current financial standing, challenges, and goals.” 

How do you deal with impulse buying and spending?

Shopping addiction – ito ang desire para bumili ng bago kahit hindi naman kailangan.

Have you ever made an unplanned purchase that you didn’t even need after all? This is a classic case of impulse buying. 

Impulse buying is an intense urge to buy with no regard to consequences. Making this a habit can hurt your finances and will always lead to a wasteful purchase. 

Pearl shares her tips on how to overcome this common urge

  1. Prioritize your needs over your wants
    This is a simple mantra that you can tell yourself. While it’s no rocket science, people often forget to remind themselves this when they are taken over by their impulses to buy something that they don’t need.
    “Ano ba ‘yong importante? ‘Yong bills na kailangan nating bayaran buwan-buwan. Kailangan alam natin ano ‘yong priority natin, mga gastusin sa bahay.”
  2. Set a budget
    As basic as it is, always set your budget because in Pearl’s own words:
    “Importante malaman kung saan napupunta ‘yong bawat sentimo na pumapasok sa iyong suweldo, kung namo-monitor mo ba ‘yong expenses mo/”
  3. Create an impulse budget
    If you’re the type who just wants to splurge but always have the budget, while that practice is not really encouraged, it also doesn’t mean you have to deprive yourself especially if you have the budget.

    Kailangan i-reward rin naman natin ang sarili. Mag-allocate din tayo ng budget para sa luho.

Ways to keep track of your money

According to the the Bangko Sentral ng Pilipinas (BSP)’s State of Financial Inclusion, 62 percent of all deposit account holders in the Philippines only keep ₱5,000 and below in their account.
Apparently, it remains to be a challenge for most Filipinos to have a savings or emergency fund. Here’s what our Country Manager has to say about it. 

Set aside at least 20% of your salary to your savings account. This is usually the challenge for most people, while it’s easy to set aside money and call it savings, it’s also easy to give in to the temptation of spending that money.

Pearl recommends various money saving techniques that encourage creativity and discipline in sticking to your financial goals. These money saving techniques are:

  1. Envelope system
    Split your expenses into three envelopes: bills, daily consumption expenses, savings. It’s a simple method but that can help you keep track of your money easier.
  2. 52-week challenge
    This money challenge is all about saving weekly, but with increments. For as little as 1 peso initial increment, you can actually amass ₱1,378 in one year. Aside from building a savings or emergency fund, this money-saving practice also encourages good money habits and promotes discipline. 

You can read more about the different money savings techniques here.

When it comes to making financial decisions and managing your money, you can never go wrong with a fresh perspective from an expert.
We hope you take to heart these nuggets of financial wisdom from our own in-house financial expert and Country Manager, and be more empowered to make better financial decisions.

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