Financial confidence is the belief that you can manage your money well and make smart decisions. It plays a big role in your ability to handle whatever funding concern comes your way, be it a planned expense or a financial emergency. More than having a big bank account, this level of confidence stems from having the skills, mindset, and tools to move forward with your goals.
That confidence becomes especially important when daily life feels more expensive. With the cost of living steadily rising, it’s easy to feel overwhelmed or unsure about your financial choices. But building financial confidence, regardless of your income, can help you make clearer decisions, all while reducing your stress and making you feel more secure about your future. Whether you're saving for something big or working to pay down debt, these practical tips can help you take control and move forward with greater peace of mind.
Start by Tracking Your Expenses
You can’t manage what you don’t measure. You need to keep track of where your money goes every month so you can gain a better understanding of your spending habits. Once you do this, you may be surprised at how much of your funds go to daily deliveries, impulse buys, or subscriptions you don’t even use.
Simple tools like a notebook or mobile apps can be used to list your expenses. Seeing the numbers in black and white allows you to spot spending patterns more quickly and make firm decisions on how to improve the way you allot your money.
Create a Realistic Budget That Works for You
Viewing your budget as a punishment is counterproductive to building your financial confidence. Rather than seeing financial allocation as a restriction, approach it as a plan on how you want to spend your money. Look at it this way: creating a budget means giving every peso a purpose. By planning your expenses, you’re making sure your funds are going to things that matter to you.
Keeping this perspective as well as your spending history in mind, list down your income and subtract your monthly expenses from it. Prioritize spending for essentials like bills and groceries, but also allot a little bit for self-enjoyment. Try the 50/30/20 rule as a guide: 50% for needs, 30% for wants, and 20% for savings and debt payments. Adjust it to match your lifestyle, especially if you’re supporting family or working multiple jobs. The goal is to create a plan that supports your goals, not one that restricts your life.
Build a Starter Emergency Fund
An emergency fund is a safety net. In the event of unexpected expenses like medical emergencies or disruptions in your livelihood, this fund can support you and enable you to make sound financial decisions in the face of difficult situations. Financial experts suggest saving at least three months’ worth of essential expenses, but if that feels too big right now, it’s perfectly fine to start small.
For example, aim for PHP 5,000, then PHP 10,000, and keep going. Set up a separate savings account for this particular fund. This way, you are less likely to accidentally touch your emergency savings for non-emergency purposes.
Use Financial Products and Services Wisely
Loans, credit cards, and credit lines can be empowering tools if you use them responsibly. Easy loans can be a reliable resource if you require a quick injection of funds. Should you need to repair your home or expand your business, applying for online loans with low interest rates can be a practical way of meeting your urgent financial needs. The key is to borrow for the right reasons and to know your repayment plan before you take the leap.
Maya, for one, offers Maya Personal Loan, a quick and reliable loan program that can offer up to PHP 250,000 and repayment terms of up to 24 months. You can apply for this bank loan directly on the Maya app, and upon approval, the funds are credited to your Maya Wallet. It is an ideal option for meeting a wide variety of needs, including paying for home upgrades and completing school tuition payments. Plus, by choosing to borrow from a BSP-supervised financial institution (BSFI) like Maya, you can make sure that your loan provider adheres to high standards for transparency and consumer protection.
In addition to this, Maya also offers Maya Easy Credit, a flexible credit line that you can activate through the Maya app. This feature gives you access to revolving credit that allows you to borrow up to PHP 30,000 funds that you can repay in up to 30 days – ideal for short-term needs or small emergencies. After activation, the funds can be transferred to your Maya Wallet or used directly for a variety of everyday transactions, whether for paying via QR, buying load, or checking out online.
Pay Off High-Interest Debt First
Part of building financial confidence is being able to balance your debts and manage them well. If you have plenty of financial responsibilities to lenders, prioritize paying off the ones with the highest interest rates. These debts cost you the most over time and can slow down your progress. This is known as the “avalanche method,” and it saves you money in the long run.
Alternatively, you can try the “snowball method.” This focuses on paying off the smallest balances first, and it can give you a quick win and boost your motivation to completely repay your debts. Whichever strategy you choose, keep making at least the minimum payments on all your debts to avoid penalties and damage to your credit.
Learn More about Money, One Step at a Time
Financial confidence grows when you understand how money works. You don’t need to become an expert overnight. By reading articles, watching videos, or joining online communities focused on financial literacy for Filipinos, you can expand your financial management knowledge and experience. This, in turn, can build your confidence in handling your financial resources.
Building Financial Confidence Is Part of Building Your Wealth
As you work toward building wealth, it makes sense to build your financial confidence too. The more confident you are with your money, the better choices you’ll make, whether it’s budgeting, saving, borrowing, or investing. You don’t have to wait until you’re rich to feel financially secure. With the right mindset and tools, you can start today and grow from there.
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