ONE OF the recommendations I always give my College of Business and Management (CBM) students at Guimaras State University is simple: save money every day. Whether it is P20, P30, P50, or P100, make saving a daily habit. Use a piggy bank, a tin can, or even a bamboo coin bank, for crying out loud! What matters is not where you keep the money but your commitment to saving it.
The longer I live, the more convinced I become that wealth creation ultimately comes down to one word: discipline.
That’s it. Financial discipline is the ability to look at something you want and tell yourself, “I’m not going to buy that. I’m going to keep that money working for me.”
Unfortunately, not everyone possesses that discipline. If you cannot discipline yourself to save P1,000 when your income is modest, earning substantially more money will not necessarily change your spending habits. Chances are, you will simply spend more.
It is not really about the P1,000 but what it represents: your ability to control your financial decisions.
As a general principle, I encourage people to live on no more than two-thirds of their income and save the remaining third whenever their circumstances allow. That savings can provide a financial cushion during difficult times and, more importantly, give them flexibility and choices.
One of the most valuable financial skills anyone can develop is the ability to resist the temptation to impress other people.
Think about it. If you do not feel compelled to impress others with expensive clothes, luxury cars, extravagant vacations, or the latest gadgets, you possess an extraordinary financial advantage.
So much of modern society revolves around appearances. People spend money they do not have to impress people whose opinions should not determine their happiness.
But what is the point of looking wealthy today if it means struggling financially tomorrow?
There is nothing wrong with enjoying the fruits of your labor. Life is meant to be lived, after all. However, spending everything today without preparing for tomorrow can eventually turn temporary pleasure into long-term financial hardship.
The challenge is to strike a healthy balance between enjoying the present and securing the future.
We all want financial freedom. But financial freedom does not simply fall into our laps. It requires discipline—the discipline to work hard, save consistently, invest wisely, avoid unnecessary purchases, and manage debt responsibly.
It takes discipline to follow a budget when attractive products are constantly competing for your attention. It takes discipline to invest your extra money rather than spend it on designer clothes or expensive holidays. It takes discipline to develop additional sources of income and resist the temptation to borrow for things you do not truly need.
And it takes discipline to keep going even when progress seems painfully slow. (To be continued)/PN
