IT'S PAYDAY FRIDAY!

Why do people spend more than saving their money?

People tend to spend more than save on payday due to a combination of psychological, social, and economic factors. The excitement of receiving money often triggers a sense of instant gratification, leading people to prioritize spending over saving. Many also experience a “spending high,” where the act of purchasing items provides a temporary sense of happiness. Social influences, such as peer pressure and the desire to maintain a certain lifestyle, further contribute to excessive spending. In cultures like the Philippines, there is also a strong tradition of sharing blessings with family and friends, making it harder to set aside money for savings. Additionally, the high cost of living, debt obligations, and lack of financial literacy often leave people with little room to save after covering essential expenses. Without proper budgeting or financial discipline, payday can feel like an opportunity to indulge rather than plan for the future. To break this cycle, individuals can adopt strategies like the 50/30/20 rule (50% needs, 30% wants, 20% savings), automate their savings, or delay non-essential purchases to develop better money habits.