The Golden Rule in Personal Finance

​"We have committed the golden rule to our memory; let us now commit it to life." 
                                                                --Edwin Markham

Life is a constant change. We feel these around us. They may or may not have bearing on our existence, but to some people, there are major shifts which intimately affect their being. Are we comfortable with the idea of change? Or, do we feel that constant change means constant uncertainty?

The dynamic relationship of a person with his life experiences brings a lot of changes. It may also have a direct impact on one’s financial condition. Changes like seasons; birth, life and death involve decisions. Decisions are made when to leave one’s family and work abroad for a better future, to buy a new car for the family, to welcome another member in the family, to transfer to a bigger house or to save for the education of the little ones. More often than not, the changes that occur are mostly predictable because they come in cycles. However, the adverse impact related to these changes often disrupts the normalcy of life especially on the financial viewpoint. 

The life of a common Filipino is a good example of change. Filipinos are known to be friendly people who can maintain a stable Smooth-Interpersonal-Relationship (SIR) with others. Most of them leave the country to give their love ones a better life. So, aside from the various psychological make-ups, Filipinos play different life roles - parent, daughter/son, brother/sister, friend, employee, spouse, and the likes. While the shifting of roles and the change that comes with it can go on and on, it is interesting to know that each life role accords its own financial role, not to mention complications, too. 

The sad plight of our kababayans who came back to the Philippines after working so many years abroad with no savings and being hunted down by creditors is a familiar story we hear regularly. They were the ones who regard the present as a defining moment at which they have finally become who they will be for the rest of their lives - but failed to succeed. Change may be complicated but we don’t need to feel that constant change is equal to constant uncertainty. 

Most overseas workers are not prepared to go back to the Philippines. Regardless on the number of years working abroad, they are never ready. Various conceptual campaigns in saving one's income have been introduced but still many are far from achieving financial freedom.  The hard work of the Filipinos overseas (OFWs) is not comparable to the skills they need to achieve financial freedom. Despite the fact that they are earning more, they are still in the loop of financial instability, and they are absorbed with constant uncertainty. Knowledge on the necessary skills to achieve financial goals is a solution for uncertainty. Not everyone is born with natural talent in handling their own finances. 

However, there are also people who are fortunate, who can effortlessly manage their finances and succeed to fulfill their financial goals. They are those who practice Financial Emotional Intelligence (FEQ). It is FEQ that significantly influence people on the approach to manage properly their finances and financial goals. The certainty of change is not a cause of distress to them. 

PERA, Inc. focuses on the promotion of Financial EQ (FEQ) literacy among OFWs and their families by helping them understand their personal behaviors and the potential risks it has on money decisions. The golden rule on personal finance is to understand properly one’s Financial Emotional Intelligence (FEQ). There may be numerous financial resources and investment vehicles available but a good grasp of one’s FEQ will make a difference in one’s effort to distinguished between different emotions that affect their financial decisions and label them accordingly. Consequently, the emotional information will provide guidance in making sound financial decisions. The knowledge on FEQ can lead the OFWs to a road of certainty. Life’s constant change will no longer mean constant uncertainty. 

It is the mission of PERA, Inc. (Psychological Empowerment to Resources and Aspirations) to promote Financial Emotional Intelligence (FEQ). PERA teaches skills that will empower people to manage their financial goals better through the use of simple and easily-understood psychological tools and techniques. It also aims to help OFWs and their families to unleash their life from financial anxiety, and live a more meaningful and stress-free life. 

To learn more about Financial EQ and how it can benefit you and your family, please click here. 

by Zell Sulit, MA
Zell has an MA in Counseling Psychology from the Ateneo de Manila University and completed the Registered Financial Planner program (RFP) Philippines.