Building personal finance is a critical aspect of everyone’s life, and it is essential to understand how to manage personal finance efficiently. In the Philippines, a survey conducted in 2019 by the Central Bank of the Philippines (Bangko Sentral ng Pilipinas -BSP) revealed that only 25% of Filipinos were interested in personal finance and invested their money. However, the COVID-19 pandemic has brought about various financial challenges that have made young Filipinos more aware of the importance of personal finance. Consequently, they have started taking steps to invest and use personal loans to improve their financial standing.
In the past two years, young Filipinos from Generations Y and Z (between the ages of 15 to 40) have faced significant financial and health challenges due to the COVID-19 pandemic. This has led them to become more aware of the importance of building personal finance actively. A survey conducted by Manulife Philippines on 500 people revealed that 81% of young people belonging to Generations Y and Z have started taking steps to secure their future finances.
The survey further revealed that 67% of Gen Y members have started investing in financial instruments, while 79% are seeking to increase their source of income, and 77% are seeking to diversify their portfolio for risk mitigation. Meanwhile, Gen Z members are actively educating themselves about personal finance and have saving plans from an early age. On average, Gen Z Filipinos start saving money at the age of 17 and investing at age 21, much earlier than previous generations.
If you are a beginner in personal finance, there are three basic principles that you should know. The first principle is to determine the sources of your budget by listing all sources of recurring income as detailed as possible. This will enable you to allocate your expenses in the most reasonable way. The second principle is participation in a life insurance policy, which provides various benefits such as protection against life’s risks, accumulating and investment benefits, and helping participants practice proper spending management habits. It is recommended that you allocate 10% – 15% of your monthly income for life insurance. The third principle is to invest your idle funds in profitable investment channels such as savings and accumulated investment funds.
Many people starting to manage their personal finances often wonder if borrowing money will negatively affect their finances. However, if used for the right purpose, a personal loan can be profitable and boost your finances. A good personal loan means you use it to achieve financial goals such as spending on unexpected accidents or working as business capital. In the Philippines, personal loans are available to those who comply with the regulations of on-time monthly repayment.
If you are looking for a personal loan in the Philippines, it is essential to choose the right provider. MoneyCat is a 24/7 online financial solution providing and consulting platform of a large financial structure operating in Vietnam, the Philippines, and Russia. It is a trusted and guaranteed-quality online loan platform in the Philippines, providing loan services of up to 20,000 PHP, with outstanding advantages such as a simple loan process, expedited approval and disbursement time of less than 24 hours, 0% interest on the first loan, and flexible payment terms from 7 to 28 days.
With simple, fast, and reputable lending procedures, MoneyCat is a safe and reliable financial solution for personal loans in the Philippines. If you are in need of a personal loan in the Philippines, MoneyCat is the go-to platform. We hope to provide you with the safest and most effective financial solutions that will help you improve your personal finance.