Breaking Free
Quite appropriately, I think it was around the time of Independence Day when I was asked what I thought genuine freedom meant. I usually pause before answering serious questions like this one but here I immediately blurted out: financial independence. True freedom is financial freedom.
On the level of the individual, one cannot claim freedom by simply living separately from your parents if they actually pay for the rent and all your personal expenses. Even if we talk about national independence, financial freedom is key. I remember when I was exposed to left-leaning ideologies when I was studying in UP Diliman, one of the most common theme was the fact that despite achieving our independence on June 12, 1898 we are never truly free because of foreign intervention, courtesy of the World Bank-IMF, in our economic policymaking.
When I finished my bachelor’s degree in business administration in 1970 and my master’s degree in 1973, I worked as an accountant for the prestigious firm Sycip, Gorres, Velayo & Co. Later, I would also work as financial analyst for the Private Development Corporation of the Philippines (PDCP). They were fantastic companies. I enjoyed my time there and I learned a lot too. But deep inside I knew I was not meant to work an 8-to-5 job behind a desk. I knew I had to break free. That was probably one of the best decisions I have made in my life.
Stephen Covey, the American author and businessman who became famous for his bestselling book, The 7 Habits of Highly Effective People, once wrote: "Your economic security does not lie in your job; it lies in your own power to produce—to think, to learn, to create, to adapt. That's true financial independence. It's not having wealth, it's having the power to produce wealth.” This is an eloquent summation of my philosophy of success.
Unfortunately, in our country “job security” often means a stable desk job and where spending on the latest mobile phone models, dining out in the trendiest cafes and restaurant, and splurging on lattes and the latest matcha craze is the norm. In the Philippines, the road to financial independence is riddled with distractions and habits that keep many from truly breaking free.
An example of this is the recent report by Singapore-based fintech firm Roshi Pte Ltd. proclaimed that credit card debt in the Philippines is at a “critical” risk level as the typical borrower owes more than four times their monthly income. The study, reported by Inquirer.net, further noted that “the 425-percent debt-to-income ratio in the Philippines—the worst in the region—indicates a ‘severe financial stress’.
You know you are not financially independent when you often experience what Filipinos refer to as "Petsa de peligro” or that date prior to payday when your budget is stretched too thin. Living paycheck to paycheck is definitely not an ideal situation especially for someone with a family. And here is another mindset that I think we need to change as I often hear people saying, “Okay lang gumastos, single naman ako, wala pa akong pamilya”. I think what that statement demonstrates is a lack of forward-thinking and planning.
Several years back there was a discussion about what to put in the basic education curriculum of the country. I think it would be a mistake not to focus on financial literacy. This is something we need to introduce at an early age. Far too many have no idea how to invest or grow their money beyond basic savings accounts. This is the reason why when we engage our OFWs we always focus on financial literacy; helping them learn how to do budgeting by tracking income and expenses, setting aside three to six months’ worth of expenses, and more importantly, investing and entrepreneurship.
Economic independence isn’t just about having money — it’s about reclaiming your life and opportunities. Imagine being able to support your family without stressing over bills, or starting your own business without scrounging for capital. It is not about becoming a millionaire overnight. It’s about the ability to make choices without fear, to build security for your loved ones, and to pursue passions unshackled by money worries.
When I was still in government, I always talked about the war against poverty. This is how we win.
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