In the Philippines, the term "mukhang pera" has gotten a bad rap. Often used as an insult, "mukhang pera" is used to describe people who either are generally reluctant to spend money or who are meticulous when it comes to money. Inherently, there is nothing wrong with being "mukhang pera." In fact, being "mukhang pera" can actually be a good thing for your finances.
Paying attention to money and being disciplined with spending are key to financial success. Those who are able to save and invest their money wisely are typically the ones who are most able to achieve their financial goals. So, if you’ve ever felt bad about being called "mukhang pera," let’s deconstruct some traditional money beliefs to see why it can actually be a good thing!
While there is no direct translation of “mukhang pera,” it can roughly be translated as being frugal. And being frugal is actually good.
When you are frugal, you have practical money habits and are mindful of your spending. You also tend to make an effort to save money when you can. This can help you build up your savings over time so that you have a financial cushion to fall back on when unexpected expenses arise or during tough economic times.
Being frugal does not mean that you have to deprive yourself of the things you enjoy. Instead, it simply means being mindful of your spending and making smart choices with your money. For example, instead of buying lunch every day, you could pack a lunch from home. Or, instead of going out for drinks with friends, you could invite them over for a movie night.
Most people think of frugality as a way to save money, and while that is certainly one benefit, it can also help you become more financially stable. When you live below your means and don't spend everything you earn, you are less likely to fall into debt. This can help you keep your finances in order and gives you more financial flexibility overall.
Being frugal can also help you reach your financial goals. When you are deliberate about your spending and make an effort to save money, you are more likely to reach your long-term financial goals. Whether you want to save for retirement, a down payment on a house, or a rainy day fund, being frugal can help you get there.
In addition to being frugal, another way of being "mukhang pera" is by being money-conscious. This simply means you are aware of your finances and make an effort to stay on top of your money.
There are a few things where being money-conscious can help you.
First, it can help you avoid financial scams. Scammers are always coming up with new ways to trick people out of their money. From fake investment opportunities to bogus sweepstakes, there are endless ways to lose your hard-earned cash. When you are money-conscious, you are most likely aware of financial scams. By understanding how finance works , you can protect yourself from becoming a victim.
Being money-conscious can also help you make better financial decisions. When you are aware of your finances, you can make informed decisions about where to allocate your money. This can help you set money goals and find the means to reach them quicker and easier.
For example, let's say you want to save up for a new car. If you're actively monitoring your finances, you'll be able to see how much money comes in and how much goes out each month. This will allow you to adjust your spending so that you're able to save more and reach your goal sooner.
Being money-conscious can help you manage your money better overall. When you are aware of your finances, you are more likely to be proactive about managing your money. This can help you avoid financial problems in the future and keep your finances on track.
For instance, if you know that you have a lot of credit card debt, you may be more likely to stick to a budget where you set aside money towards paying it. Or, if you are aware that you tend to overspend when you go out to eat, you may be more likely to cook at home more often. By being aware of your spending patterns and financial situation, you can make changes that help you save money and stay on top of your finances.
So don't be afraid to be "mukhang pera." Being frugal and money-conscious can actually be good for your finances!
Let Metrobank help you on your journey towards being more frugal and money-conscious. Check out our other budgeting and saving tips on Money Basics to get started!