What's stopping you from becoming rich?

Posted at 06/22/2014 3:21 PM | Updated as of 06/24/2014 9:20 AM

(Editor's note: This article was written by MoneyMax, the Philippines’ foremost online platform for comparing financial and telecom products and services, for ABS-CBNnews.com. Find out more at MoneyMax.ph.)

MANILA - Do you think saving money and hard work will secure your future?

Here’s a straightforward answer: NO.

Even if you’re working like a horse or if you have money in the bank, the security of your future depends on what kind of discipline you have when it comes to handling money, especially since the rising inflation rate will soon shrink your money’s purchasing power.

You’re can't say that, after a decade, the things you can buy now at P100 can still be bought at P100. Prices of goods and services grow year by year.

If you seriously want to be rich someday, here are some plain and simple truths that you need to hear:

Let’s all admit it. Everyone wants to live a life like the ones we see in the movies. Who doesn’t want to live in a mansion, drive a luxury sports car, and have billions in the bank? We can dream all we want, but we should get a strong grip on the truth that life is not a fairy tale.

Rich or poor, we need to find a source of income, work hard, and own up to obligations. No individual has earned cash from bumming around. Don’t rely on your family or even the government to give you financial support so you can luxuriate while others are working long hours and struggling to make ends meet.

Be money smart

Be responsible, and rid yourself of the ideas that make you live beyond your means. Everyone claims to be smart, but very few people are money smart. By being money smart, your main priorities must be to save and protect your money while fulfilling your present duties.

Manage your finances by planning a budget, opening a savings account, opening an investment/insurance portfolio, allocating an amount for your contingency fund, and staying out of debt.

You don’t have to deprive yourself of small luxuries; you just have to think critically before spending and rewarding yourself with a new gadget, clothes, jewelry, or night out with friends. Set your priorities straight and always put “pay my bills on time” on top of your checklist.

Live a healthy lifestyle

Most Filipinos will agree that to the phrase “bawal magkasakit.” Aside from the fact that many of us still don’t have access to quality healthcare, a person who’s in the right mind would rather host a fiesta rather than buy medicines or pay hospital bills. To set the record straight, “masakit sa bulsa na magkasakit.”

Quit your vices, eat right, and exercise regularly. Don’t turn a blind eye on living a healthy lifestyle because at the end of the day, it’s not just your finances that will suffer, if you decide to do otherwise.

Here are 5 Habits that Stop You from Being Rich, but here are more practical ways from MoneyMax.ph: