Are You Suffering from Generational Stinginess?

Simple Sum Philippines

As Christmas draws near, it's very easy to think about bad money habits, right? I remembered I used to overspend as a teenager and I had to deal with not having much money. Though, it was also a problem when generational stinginess strikes. Is it me or are the baby boomer (1946-1964) tend to be that stingy except for a few? What irritates me is when these kinds of habits strike:

1. The opposite extremes of being either stingy or extravagant. Being thrifty is the middle road.
2. When a family either doesn't value competence or overemphasizes being on top.

I think a good topic that I wanted to write about for some time is passing down stingy habits. It gets irritating talking to typical boomers who feel like they've achieved a lot. What's worse is when they complain that their children aren't matching them. I wonder if baby boomers are also the reason why the Philippines got stuck with K+10 for a long time. All the while, the ASEAN neighbors have already adopted K+12 into their education. That's because entering into business (or the workplace) at only 19-20 years old is probably commonplace for those born from 1946 to 1964. I guess they felt K+10 was enough which really poses a problem. Lessons are getting harder these days so why force-cram everything? In fact, children of honor students in elementary to high school may soon feel the pressure to be as "great" as their parents. Some even insist their children marry as early as they did. Well, I guess they got used to their parents marrying as early as 18. Worse, some baby boomers tend to want their children to be as stingy as them.

I think these are some money habits that might have held millennials (1981-1995) and zoomers (1996-2012) back. I was even thinking of absurd money habits that I detested (and caused me to cross the opposite extreme namely extravagance) for some time. Here they are:

1. Refusing to diversify the food menu because something is economical. For example, you want to have humba (braised pork) almost all the time because it's economical. This ignores the fact that eating humba daily isn't healthy due to its high fat and sodium. You might end up spending more money on high blood medicine later. True, vegetable dishes can easily perish but you need your healthy dose of green leafy vegetables. 
2. Refusing to buy insurance calling it "useless". It's really something that a person looks at insurance as useless never mind it comes in handy when one gets property damage, injury, sickness, or even death. Sometimes, a legitimate insurance company's worst enemy is when a stingy person calls them a scam. I guess some stingy people can't tell the difference between playing Axie Infinity and investing in AXA huh?
3. Refusing to invest the money in the bank. Some have done the absurd by hiding their money under the mattress or in a family safe. That's definitely a big invitation for thieves one way or another. 
4. Worse, some even compromise their needs by choosing cheap quality services so they don't have to spend much money. Some of these can be as absurd as follows:
• Choosing a cheap lawyer to defend you from a case you can't afford to lose. This would be very stupid because the cheap lawyer may end up asking for "cheap fees" which, in turn, will be more expensive if you got a quality lawyer who may initially cost higher but will defend you properly. 
• Choosing bad repair services because they're cheaper. This can result in slow work that can result in also bad quality work. It could've been better if you took one that costs more but only because they give you reliable, speedy work.
• Choosing cheap garments that easily tear apart. Okay, sure it will be cheaper but your money is bound to be consumed by it. I think one way to scam stingy people is by selling cheap, ineffective items so they keep coming back for more.
• Choosing to buy toys that are too cheap to be real. These toys make bad presents not only because they break easily. I heard how some overly cheap toys can have very bad safety concerns such as the use of lead in the paint or any toxic material. Better buy an affordable toy from the Toy Kingdom or SM Toystore instead to give as gifts.
• Choosing to eat at eateries that are too cheap because they lack safety standards. This would ignore the fact that eateries that lack safety standards are bound to cause serious diseases like cholera, Hepatitis A, or leptospirosis. Just imagine the high cost of paying hospital bills later because you refused to pay a higher cost for safer food. 
• Choosing to get hospitalized in a substandard hospital because it's more affordable. True, it might be costly to pay more at a good hospital. However, it's worth asking if you'd risk your own well-being with substandard medical equipment.

Instead, it becomes more practical to think of long-term savings. The alternatives are to be thrifty. So, what I ended up learning are these instead:

1. It's time to focus on healthy food even if it's not more "economical". A good start is to eat humba only on occasion (and personally, I end up not looking forward to it). Instead, focus on fresh vegetables, lean meat, etc. Make sure everything is as healthy as possible. This way, one can cut down on medical bills.
2. As said, it's more than time to get insured. AXA is a good start though there are also other good companies. I decided to get Healthmax because I tend to get sick fast. That's why it's time to learn smart money habits with your paycheck instead of the bad habits why it drains so fast (read here). One could easily get good insurance from AXA and get a start. This would be a good way to make sure you get some security. 
3. It's time to do some investments. Are stocks too scary? Well, why not invest in an index fund and do some cost averaging. Warren Edward Buffett even recommends cost averaging into a low-cost index fund (read here). It would be very practical to do some equity funds or index funds for a start. Though, there's also the option to learn some basic stock trading--something I want to do right now.
4. Never compromise quality for a cheap price! That would be sound advice if you want more savings in the long run. Here are some tips that'd be better instead of being stingy:
• If there's a case you can't afford to lose then make sure to get a good lawyer. A good lawyer cares more about the welfare of the client than their own money. Some lawyers may charge low (at first) but will soon rip off the client in the long run.
• Get the best repair services available based on reputation. If avoiding overly priced repairs is one then avoiding overly cheap repairs is another. It would be best to get a reputable repair where they're known to be honest and the price for convenience is worth it. I'd go to have my stuff repaired not by sleazy repairmen but by those who are registered and have a good reputation.
• Buy the best quality garment. Sure, I'd avoid branded clothes because they're overrated. Instead, I'd go for casual wear. But I'd choose casual clothes that are in good condition and of good quality. That's pretty much the middle road between branded clothes and very cheap poor quality clothes.
• Learning to look for places with affordable food and good ambience. It pays to avoid places like eateries on the sidelines (tabi-tabi) or squat eateries (pungko-pungko). Meanwhile, one could look at how one could get affordable delicious food from safe places. One could look at the place if it has passed standards. This is the best middle road between always eating five-star food and choosing to eat super cheap food. The cost is average but chances are the taste may be better than some overly priced or underpriced restaurants. 
• Make sure the hospital you get into is not only affordable but reputable. It may be more costly (at first) but it pays to pay for convenience and safety. It would be good to be admitted to a regular hospital than a substandard hospital. This would mean that the staff is very professional in handling their equipment. Safety is more important than short-term savings. 

If one should avoid overspending then one should also avoid underspending. Just think spending is part of economics as much as saving. Savings will mean nothing if it's not spent on necessities and invested in stuff like treasury bills, equity funds, and stocks. This is what I've been learning ever since I started to juggle in my money journey. I never always come out victorious (and I've been hit by losses to) but I can certainly learn from my losses to achieve victories later. Learning to be thrifty instead of stingy or extravagant is definitely one lesson I've learned and am still learning.