4 Common Financial Mistakes to Avoid

Everyone has to deal with money, but only some know how to handle it properly. That’s why some people can make their money grow while others are drowning in debt. 

To avoid being the latter, you need to take care of your financial health. Just as you need to steer clear of unhealthy habits and toxic mindsets for your physical and mental health, there are also financial mistakes you need to avoid making. 

Mistake #1: Not having a budget. 

YOLO is not an attitude to adopt when it comes to your finances. Receiving your salary then immediately splurging on the latest budol finds may leave you relying on petsa de peligro meals long before the next payday arrives. At worst, you may find yourself borrowing funds just to pay for your necessities, all because you don’t have a budget. 

Keeping a budget may seem like a daunting task, but it doesn’t necessarily mean tracking all of your expenses down to the last centavo. Think of a budget as something that helps you face the reality of what you can and cannot afford, allowing you to set limits to your spending and ensure you adopt a lifestyle of living within your means. 

Mistake #2: Not paying your credit card bill in full. 

When your credit card bill arrives, it can be tempting to pay only the minimum amount since it’s usually easy on the pocket. But not paying your credit card bill in full is a crucial mistake because whatever balance you leave behind is subject to interest. If you only pay a partial amount each time your bill arrives, then the balance and corresponding interest pile up, plunging you into a spiral of debt that can be difficult to escape. 

Avoid setting yourself up for a big financial crisis by ensuring that your credit card purchases only amount to whatever you can afford to pay in full at the end of each billing period. 

Mistake #3: Not having an emergency fund. 

The biggest consequence of not having an emergency fund is going into debt, whether it’s racking up an incredibly high credit card bill or owing multiple people various amounts of money. This financial strain is just one of the stresses you would have to deal with on top of the anxiety the emergency itself brings, and it’s a burden that lasts long after the emergency has come to pass. 

Give yourself some peace of mind by building an emergency fund. You can start slowly by sticking to a savings plan that works for you, whether allocating a certain percentage of your income or setting aside a specific amount consistently. 

Mistake #4: Relying on a low-interest savings account. 

You may think you’re doing your due diligence by keeping your money in the bank as savings. But that money is practically stagnant when you keep it in a savings account where interest rates fall below 1% and earn your money so little. 

Let your money grow by investing it instead with a Salmon Time Deposit account at the Rural Bank of Sta. Rosa (Laguna). With a minimum deposit of PHP50,000, you can keep your money locked between 6 to 12 months so it can earn at least 5% per year, depending on the lock-in period. For those that have more than PHP500,000 to spare, you can also easily earn 8.88% interest* for a 12-month term!  

Your journey to becoming more money-savvy begins with avoiding these financial mistakes, and the easiest way to start is by opening a Salmon Time Deposit account today!

 
*Interest earnings are subject to 20% withholding tax. 
"Salmon Time Deposit” is a product of the Rural Bank of Sta. Rosa (Laguna) 

Rural Bank of Sta. Rosa (Laguna), Inc. is regulated by the Bangko Sentral ng Pilipinas (Email: [email protected]). Deposits are insured by PDIC up to ₱500,000 per depositor.

For concerns, please visit any of our offices or contact us via:

For Head Office: 0955-271-1615 / (049) 534-1126 / email: [email protected]/ mail: F Gomez Street, Poblacion Malusak, City of Sta Rosa, Laguna

For Bacoor Branch: 0955-861-7848 / (046) 434 - 6197 / email:[email protected]/ mail: Evangelista St., Poblacion, Daang Bukid, Bacoor City, Cavite