Ways to be debt free: How come your still not financially free?

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It has been awhile since I updated this series. An incident lately prompted me to write. 



Though people have finally paid off their debts and started saving up still it seems that they are still stuck in the same situation from where they were before: living from paycheck to paycheck, always only able to save up very small amount for their retirement fund and emergency fund, and as if no matter what they do they can’t keep up with the rising prices.

Well I have this friend who is now living through a government agency because of a financial windfall that came to his family. Little by little he is picking up himself. But one day he ask me if I can loan him money. So I was startled. Then he told me that he has a friend who is selling a vehicle at a bargain price and he thinks it is a good price and it would greatly help him since he will be able to go to work better with a vehicle rather than using public transport. I said I don’t loan at all. And told him how about your goals of becoming financially free if you loan gain how will you pay for it since your current pay for now only covers your rent and your daily meal. 

And then he realizes my point. He was awaken and he thank me that I guided him.(This is just a fictional story)

Most of the time people forget what have they been working on: that is to get themselves out from the rat race.

In my story if he buys the bargain vehicle yes he will have a comfortable  ride going to work but in the process he added another debt which his current finances can’t afford and there is a high likelihood that due to his comfortable and reliable ride he might start oversleeping and be late at work because at the back of his mind he has vehicle to use no more catching up the bus.

Most people who after paying all their debts go again into debt because they can’t let go of their old lifestyle: The lifestyle of having what my rich neighbor has even though I cant afford it.

If you noticed there are only few Overseas Filipino Workers or OFW that has truly succeeded after doing their stint in abroad. The problem is when they are abroad they send money to their families and their spouses buy a flatscreen, get cable, remodel the house, buy luxury which they never had before and saying that “because we can afford it now lets get them”. Where did all your hard work go? Where did your salary go?


All went to consumer goods. Consumer goods are things you buy to be consumed and never generate back additional income.

Some OFW are wise. They send money to their spouse and tell them either to save in a bank with a good interest return, put it in UITF, or even better buy a Van, a Rental property, or do Five-Six, to earn extra money. The van is use either as a school service for students of the rich schools or even a delivery van for small operations for province to Manila and back routes. Rental property like apartments gives back rental income. And the well known 5-6 gives back income as an interest.
Most fail to achieve financial freedom after finally paying their last debt because they get back to their old lifestyle. One has to be focused on the goal. Wouldn’t you like to retire young and without thinking of your expenses?

Action my friend, you make the call. You need to change our lifestyle. You need not follow the standards of your neighbor; make your own definition of success.




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Financial Freedom Advocate About the blogger

Louis Delos Angeles is a Certified Public Accountant, blogger behind Investing in Philippines, and author of Investing in Stocks: Preparing for the future small amount at a time. Check him out in Google+ Learn more about Louis and his financial freedom advocacy here.

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1 comment for “Ways to be debt free: How come your still not financially free?

  1. March 17, 2012 at 6:49 am

    I have lived on Boracay apartments for 15 years and loved the place so much i built cohiba. These are the Biggest and Best value for money apartments on the island period ! Every apartment has stunning sea views and 30m2 to 40m2 balconies with which to enjoy it. We are overlooking the windsurfing / kitesurfing bay where the season goes from November to april. Its either a great sport to participate, or great to just sit on your huge terrace and watch.
    Boracay apartments

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