I will break from the usual question and answer format for this week’s column.
We, Filipinos, have this habit of saying “pwede na” to mean that mediocrity is good enough. At the same time, we are fond of saying “bahala na” when we feel there is no other choice but to surrender to the uncertainty with our future. And these expressions can never be more true than for the Filipino’s finances.
When I wrote my first book, I entitled it “Pwede Na” for a reason. In the book’s introduction, I wrote the following:
“Being in a financial rut causes a lot of emotional stress and leads to poor performance at work and many times to an unhappy home. I remember a bumper sticker that paraphrased the song of the seven dwarfs, “I owe, I owe, so off to work I go!” This cannot be a very good motivation for going to work.
Pinoys can make a difference in their lives, especially in breaking away from this payday-to-payday treadmill. A shining testament to this is how Pinoys improve their lot through hard work when they go to work abroad. They do not only work hard, they also follow the rules like crossing the street at pedestrian lanes, pointing with their hands and not their lips, keeping their dogs inside their homes, and even paying the right taxes. In essence, they discipline themselves. And in the case of breaking the vicious debt-income-debt cycle, they apply sound financial discipline.
The Pinoy back home should take heart because OFWs (overseas Filipino workers) do not have a monopoly of financial discipline. Each Pinoy already has the seeds of such discipline in him. All he needs to do now is to water those seeds. So you see, PWEDE NA!
The Pinoy does not have to wait for the economy to boom. He doesn’t even have to wait until he moves to a better-paying job or gets a raise in his current one. With the seeds of discipline in him, the Pinoy is ready to begin his journey toward financial freedom NOW! In other words, PWEDE NA.”
Every individual, not just Pinoys, is capable of getting on the road to financial success. Are you still not convinced? Take our P3.50 challenge. Save P3.50 per work day for five work days in a week and for 52 weeks in a year. That amounts to P910. Did you know that with today’s savings deposit rate of only 0.10 percent p.a., net of the 20-percent final withholding tax on interest income, you will need a whopping P910,000 deposited in a savings account for one year just to earn that same P910? And yet, even without the huge capital, you can accumulate the same amount just by saving P3.50 a workday for five workdays in a week and 52 weeks in a year.
On the matter of bahala na, I would like to think that the origin is bathala na, which means I will do my best and God will do the rest. If you think about it, bahala na means the opposite of being fatalistic. It means grabbing your challenges by the horns and working like there is no tomorrow in achieving your financial goals but not without asking for blessings from above.
Perhaps the correct meaning to bahala na is embodied in the Winner’s Creed, which I quoted in my “Pwede Na” book as follows:
If you think you are beaten, you are. If you think you dare not, you don’t. If you’d like to win, but think you can’t, it’s almost a cinch you won’t. If you think you’ll lose, you’re lost. For out in the world, we find success begins with a person’s faith. It’s all in the state of mind. Life’s battles don’t always go to the stronger or faster hand. They go to the one who trusts in God and always thinks “I can.”
So, when it comes to your finances, internalize pwede na and bahala na the right way!
Efren Ll. Cruz is a registered financial planner and director of RFP® Philippines, seasoned investment adviser, bestselling author of personal finance books in the Philippines and a YAMAN coach. To consult with a YAMAN coach, email yaman@personalfinance.ph. To learn more about personal financial planning, attend the 96th RFP Program this June 2022. To inquire, email info@rfp.ph or text at 0917-6248110.