Have you ever felt like there’s never enough money to go around? It’s a common feeling, especially for millennials here in the Philippines, where the cost of living seems to keep rising. The good news is, this mindset can change. Instead of thinking there’s not enough to go around, what if you could shift your mindset to believe that abundance is possible? In this blog, we’ll dive into how changing the way you think about money can help you build wealth in 2025 and beyond.
What is a Scarcity Mindset?
A scarcity mindset is when you focus more on limitations—thinking that there’s only so much money in the world, so you need to hold on tight to what you have. It’s about being afraid that you’ll never have enough.
For many Filipinos, this shows up in the way we handle money. Many still prefer to hoard cash in low-interest savings accounts, thinking that saving every peso is the key to financial security. However, as inflation steadily rises—like we saw in 2023 when inflation rates hit 6-7%—the value of your money starts to shrink over time. Reports from Rappler explain that inflation silently eats away at the value of your savings, which means that just stashing money away isn’t going to keep it as valuable as it once was.
For example, let’s say you’re saving ₱10,000 in your bank account, hoping it’ll be your emergency fund for the future. But in the meantime, inflation is silently making that ₱10,000 worth less every year. So, even though you’re saving, your money is losing purchasing power instead of growing.
How Abundance Thinking Unlocks Wealth
On the flip side, an abundance mindset sees money as a tool for freedom and opportunity. Rather than seeing money as limited, you believe there’s enough to go around, and you can grow your wealth by being smart with your resources.
Here are the benefits of an abundance mindset:
- Proactive Investing: With an abundance mindset, you stop seeing investing as a risk and start seeing it as a way to grow your wealth.
- Less Stress Around Money: You understand that money is a tool to help you live a fulfilling life, so you stop stressing about it constantly.
- Taking Smart Risks: Instead of avoiding investments out of fear, you begin to take calculated risks that can grow your wealth over time.
Imagine a millennial who wants to travel the world but also wants to build their financial future. Instead of keeping all their savings in a regular bank account, they decide to invest in mutual funds. By setting a budget for their travels and investing in funds, they can achieve both goals: enjoying life now and securing their future wealth.
The Role of Social Media and Lifestyle Pressure
Social media often makes us feel like we need to spend money to keep up with everyone’s lavish lifestyle—luxury vacations, the latest gadgets, designer clothes. But the truth is, financial freedom isn’t about spending everything now. It’s about making smarter decisions so you can enjoy life now and in the future.
To strike a balance, consider using the 50-30-20 rule. This simple budgeting technique suggests you allocate:
- 50% for your needs (things like rent, utilities, food)
- 30% for your wants (dining out, entertainment)
- 20% for savings and investments (your future wealth)
Research from Inquirer also suggests that creating a splurge budget within your overall budget helps you manage your money wisely while still allowing you to enjoy life. It’s about living in the present without sacrificing your future goals.
Actionable Steps to Shift Your Money Mindset
Making a change in your money mindset might sound challenging, but it’s definitely doable with a few simple steps:
- Start with Positive Affirmations: Tell yourself, “My income will grow with smart decisions.” This helps rewire your brain to focus on abundance and opportunities.
- Set Clear, Time-Bound Goals: Start small. For example, “I will save ₱50,000 for a mutual fund in the next six months.” Breaking it down into smaller goals makes it easier to achieve.
- Educate Yourself: Knowledge is power. Attend free financial literacy webinars, read books, and explore resources like the BSP financial literacy tools or UTrade’s investment webinars to learn more about growing your money.
- Track Your Progress: Use apps or budgeting tools to monitor your expenses, savings, and investments. Keeping an eye on your progress will motivate you to stay on track.
- Start Small with Investments: Don’t wait until you have tons of money to invest. Start with beginner-friendly options like Pag-IBIG’s MP2 program, which allows you to start investing with small amounts and watch your money grow.
By following these steps, you’ll be well on your way to a mindset shift that helps you achieve long-term financial success.
How UTrade Can Help You Grow Your Wealth
At UTrade, we understand that shifting your mindset is the first step towards financial growth. But we also know that the right tools and knowledge are key to making your money work for you. Whether you’re just starting with investments or looking to diversify your portfolio, UTrade is here to support you every step of the way. With expert guidance, webinars, and a user-friendly platform.
So, why wait? Make 2025 the year you embrace abundance. Start by shifting your money mindset today, and let UTrade be your partner for a better stock investing journey towards financial freedom.
Are you ready to invest in your future? Sign up for UTrade’s webinars and start your journey to financial growth today!
UTrade, is the online stock trading platform of Unicapital Securities, Inc., which offers smooth online stock trading and investing. With real-time market access, customizable layouts, and comprehensive charting, our platform provides convenience and a wide range of investment options, including stocks and mutual funds.
Unicapital Securities, Inc. (USI), under the Unicapital Group of companies, is a leading brokerage house duly licensed by the Securities and Exchange Commission and is a member of the Philippine Stock Exchange.
