Can money buy happiness? 6 Pinoys get real on financial freedom and what keeps us from it.

Guest participants were Seth, a 24-year-old communications professional; Lay, a 26-year-old entrepreneur; Lea, a 27-year-old business development executive; Ronnie, a 32-year-old art director; Glenn, a 38-year-old data analyst and mother of two; and Paulo, a 42-year-old HR professional with a major conglomerate.

Watch the video for more interesting insights or read on for the highlights:

How do we define financial freedom?  When can you say you’ve “arrived”?

As the youngest in the group, recent grad Seth asked whether there was a number or metric for financial freedom.

There was no single answer, because everyone defined it differently. Some common factors though:

“Enough income to have the lifestyle you want without stressing out… yung di ka nag-iisip kung saan ka kukuha ng pera (you are not thinking about where to get money).”

“At the grocery or the mall, you don’t look at the brand or the price. Hanap muna ako ng preloved.”

“You’re covered for basic expenses and bills, meron kang emergency funds, extra for fun or travelling. … Malayo sa traditional definition na malaking bahay, flashy car. It’s being able to do what you want, when you want.”

In fact, financial freedom is far from a one size fits all.

Can you save your way to financial freedom?

Sadly, no. While we all have different thresholds for financial freedom, it’s clear that savings alone cannot get us there.

As Lay pointed out, “say you save PHP 5K per month, it will take 17 years to reach your first million… Nowadays you can’t even buy a house with that.”

“Depends how much you can actually save! If you have ten million a month and save nine million of that, eventually it will be enough.” (To which we can only say, SANA ALL!)

Others in the group use savings for illness and emergencies (“Two sinks busted in one month, no choice.”). Others view savings as seed money, to invest strategically in order to generate more, whether income or personal joy. While they’re not enough by themselves, savings are an important building block for financial freedom.

Can money buy happiness? And how much is enough?

Yes -- “mahirap maging masaya pag pino-problema mo bills mo (it’s hard to be happy if you are worried about your bills).”  

Money also gives us choices, not just in material things but in how we spend our time. “Maximize your time, to monetize it,” in Ronnie’s words.

“Unlimited money can buy you unlimited happiness, but where does your happiness come from?”

“It doesn’t depend on money. Money just amplifies your character, kung sino ka talaga (who you really are).”

The group also unanimously agreed on the need to avoid so-called “lifestyle inflation.” This is when our income grows – via a raise or a big financial win, for example – but we allow our lifestyles to grow just as much, leaving us little or no net gain toward our financial goals.

Financial guilt and responsibility

Another thing blocking many of us from financial freedom is financial guilt. We’ve all made money missteps, often as part of being young. But the key is to pick ourselves up and take responsibility for our futures.

Glenn shares an experience of financial guilt from overspending in her youth, “naging overspender ako in my twenties. At the time, hiya-hiya man but my savings were only 20K kasi sasahod naman next month. It’s only when I had my daughter that I really began to look seriously at my finances.”

“My day job funds savings and investments. Side hustles and rackets fund all the ‘luho’ (luxuries).”

While loved ones are a big reason for us to pursue financial freedom, the group also agreed that we can and should set limits, because we’re looking out for our loved ones’ future as well.

“For yourself, you can overanalyze [and not buy]. But when it’s to share with other people, ang sarap ng feeling… But we can’t just keep giving [money] away.”  

Lightbulb money moments

Money is just an object, but many adults have complex relationships with it that are tied to our personal histories and career experiences. Our six participants also shared pivotal moments that altered how they manage their funds.

“I got my first seven figures at 22. I didn’t expect it would happen to me -- tumaas ang ego ko, pumangit yung relationship ko with money…You should never take your money for granted,” Lay shared.  

“There was a gap between my last job and [my current] one…Walang sweldo, I was at rock bottom. I had to seek help. …. It was an eye-opener. Now I work enough so that when the time comes, I would regain [my] confidence. Lagi kong binabalikan yung experience na yon (I keep reflecting back on that experience).”

“We learned that businesses can fail, and that your money needs to be spread out. Not just cash but in other formats. Always important to have a backup plan in case things go sour.

Insurance: a long-term move toward financial freedom

As the talk ventured into insurance and financial planning, Lea narrates her journey from skepticism to recognizing insurance as a cornerstone of security for the future. “When I got my first job, I also got my own insurance plan. … I am not other peoples’ responsibility. I’m building something for myself and my future.”

Glenn, for her part, realized her need for insurance when she was thinking about her  child’s future, “So, para kahit anong mangyari sa ken, may maiiwan ako sa anak ko (So, whatever happens to me, I’ll have something I can leave behind for my child.”

For those who don’t have insurance yet, what would make a plan desirable?  

The group’s “wish list” includes:

• Less risk;
• Flexible payment terms, so they are not forced to make a huge cash outlay at once;
• High returns;
• And no scare tactics or sugarcoating.

“Explain the pros and cons well, para hindi mabigla yung kukuha (so customers won’t be surprised if they sign up).” as Glenn put it.

An insurance plan like FWD SmartStart Investment-linked Insurance provides all these: life protection, diverse funds selection, guaranteed milestone increase, fee reinvestment benefit, accidental death benefit and waiver of premium, all starting from PHP1,800 a month. You can view the full list of benefits here.

What can young people do now to get closer to financial freedom?

The group’s top suggestions:

• Be aware of the environment and financial beliefs you grew up with. You can choose to repeat them and settle for the life you know or take action to change it.
• Teach our kids to save and manage money, both in school and at home
• Eyes on the prize: identify your life goals. “Kung di mo alam yung gusto mong gawin, kalat-kalat yung life goals mo (if you don’t plan, your life goals will be all over the place). Your money moves and financial discipline won’t land...temporary happiness doesn’t get us closer to our life goals.”

Final takeaways

Whether via savings, investments, or insurance, Filipinos’ road to financial freedom is personal and varied. What matters is that we’re on the journey, consciously making choices to get us to our goal.

Two things that stuck with us: Risk (in business or investment) is part of that path, scary but necessary to make big gains. As corporate vet Paulo said, “Scared money don’t make no money.”

And secondly, while it’s best to start young, no start is ever too late

So, what’s the TLDR?  Yes, money can buy some happiness and bring stability and security. But it’s just a first step: understanding, respect, and responsible financial management are equally necessary for a truly fulfilling life.

Set up a free financial consultation with an FWD financial advisor for clear, simple answers to your insurance questions, and how to tailor a plan for your individual needs.