Chinkee Tan shares common mistakes people make when managing finances

Managing money can be challenging, especially when you’re trying to fit everything into your budget. You have bills and daily expenses that require your attention. Without a solid understanding of your finances, handling these responsibilities can become quite tricky. Sometimes, we don’t even recognize our bad habits when it comes to managing money.

- By ROBERT R. REQUINTINA

During a recent roundtable discussion with the entertainment media at the Kamuning Bakery in Quezon City, popular motivational speaker and financial advisor Chinkee Tan addressed common mistakes people make when managing their finances.

Chinkee, 60, said the first mistake that people often make is lifestyle inflation, where individuals spend beyond their means.

"We cannot control inflation, but one of the biggest mistakes Filipinos are committing is lifestyle inflation," he said.

Chinkee mentioned, "Remember your first salary? Maliit lang siya pero nagkakasya at minsan may sobra pa. Noong lumaki na (ang sweldo), nagkulang na at may utang pa tayo. (It was small, but it was enough. When the salary increased, we lacked money, and we were in debt.)

"The problem is not the income, but the person handling the income. Noong lumaki na ang kita natin, naging iba na ang mindset natin. It's like we're saying, 'Ito na ang panahon ng paghihiganti.' Lahat kinakain mo na. Yung dating hindi mo pinupuntahan, pinupuntahan mo na. (When our income increased, our mindset changed. It's like we're saying, 'This is the time for revenge.' So you've eaten everything. You're going to places you don't usually go.)

"Nasanay na tayo. Ang income natin hindi naman stable. Kaso ang taas na ng lifestyle mo eh. (We're used to it. Our income isn't stable. But your lifestyle is already high)," Chinkee pointed out.

Another mistake is the lack of financial literacy, he said.