Allan from the Philippines shares his personal financial journey and the five money habits he’s learned along the way that, according to him, won’t lead to wealth. These habits were formed from a young age and reflect common financial pitfalls that many fall into without proper guidance.
The first habit Allan discusses is treating money casually from a young age, which stemmed from playing games using cigarette packs as pretend money. This habit ingrained a less serious attitude towards actual money management.
The second habit is working hard for money without considering smarter ways to earn or invest, a lesson he learned through helping his family with farm work. While this taught him the value of hard work, it also limited his perspective on earning potential.
Spending money without a plan is Allan’s third financial habit. After securing his first job, he enjoyed the new-found freedom to buy things he previously couldn’t afford, but soon realized that this spending behavior led to more desires without actual financial satisfaction.
The fourth habit involves reckless borrowing. Allan recalls using credit cards to maintain a lifestyle he couldn’t afford, which eventually led to significant debt. This habit highlighted the dangers of borrowing more than one can repay and the high costs associated with cash advances and credit payments.
Lastly, Allan touches on saving money only after being deeply in debt. He eventually set up an automatic savings plan, which helped him manage his finances better and prepare for emergencies, like his sister’s accident. While saving was crucial, he recognized it was only a starting point and not enough to truly build wealth.
Allan concludes that while these habits provided valuable life lessons, they alone are not sufficient to achieve financial freedom. He emphasizes the need to go beyond just saving and into investing and growing money effectively to reach true financial independence.
