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Naka-fully pay ka na sa loan mo... pero bakit parang kulang pa rin?
For many Filipinos, financial freedom means clearing off debt. The relief of saying "Wala na akong utang!" is unmatched—until the next emergency strikes and you're left with nothing. A 2025 survey revealed that 65% of Pinoys feel "financial emptiness" even after fully paying their loans.
The truth? Having savings is not just about money—it’s about kalmado ang dibdib (peace of mind). In contrast, paying off debt brings only temporary ginhawa (short-lived relief). Without savings, you remain stuck in the cycle of financial stress and worrying about future expenses. Financial peace of mind in the Philippines is not just about zero debt but having a safety net. So why does saving even a small amount, like ₱10k, feel better than settling a ₱100k loan? Let’s dive into the psychology behind it.
Science backs this up: saving triggers dopamine, a feel-good hormone linked to long-term security and control over one’s future. Meanwhile, debt and financial stress spike cortisol, the hormone responsible for anxiety.
Consider savings as ulam—you might not want it right now, but you will be glad you have food when famine strikes—also known as crises. Loan payments, on the other hand, could feel good right now, but after your money runs out you will once more feel insecure. Living paycheck to paycheck can cause financial stress that is draining; thus, having an emergency fund (EF) is absolutely necessary.
Many Filipinos battle with spending patterns that give instant gratification first priority above future security. Reaching long-term financial goals like buying a house or financially retiring can be seriously hampered by this. Financial concern also influences mental health; savings help you to relax and concentrate on enhancing your life instead of only survival.
In the Philippines, debt is tied to hiya (shame). Many prioritize loan payments over everything else—often at the cost of pambaon sa anak (school allowance) or self-care. This cycle of paying debt but never building savings keeps people financially stuck.
One borrower shared, “Nawala ang utang ko… kasama na rin ang pangarap kong mag-Japan.” (My debt is gone… so is my Japan dream.)
This is the reality for many: sacrificing everything to be debt-free, only to end up with zero security and zero progress towards their actual financial goals. Financial peace of mind in the Philippines isn’t just about paying debt—it’s about ensuring you have enough money to live in the present without stress and uncertainty.
Many think saving is impossible when they're drowning in expenses. But starting small can make a difference. Here’s how:
A good rule of thumb: If the interest rate is above 10%, prioritize paying it off if you have the ability to do so. Otherwise, balance between loan payments and savings.
Warning: Kapag inubos mo ang ipon mo para sa utang, parang ginawa mong bangko ang loan shark. (If you use all your savings to pay off debt, you’ve essentially turned the lender into your bank.)
When planning your budget, it’s crucial to leave room for both savings and loan payments. Prioritizing only debt repayment can lead to another financial crisis when an emergency arises. The key is progress, not perfection—gradually increasing your savings while managing finances wisely.
“Di mo kailangan maging mayaman—kailangan mo lang maging matalino.” (You don’t need to be rich—you just need to be smart.) Start with ₱10k, no matter how small your steps are.
At the end of the day, mas masaya ang may ₱10k na ‘di mo gagalawin… kesa ₱100k na ‘di na babalik sayo. Start saving now, because it's essential to realize that financial security isn’t about how much you earn, but how much you keep.
