Filipinos are known for being resilient. Kahit gaano kahirap ang buhay, we always find a way to survive. But one of the biggest financial habits that keeps many of us from moving forward is what I call the “Ipit Mentality”—the tendency to always rely on utang instead of building savings.
In this article, let’s dig deeper into what this mentality means, why it happens, and how we can break free from it.
What is ‘Ipit Mentality’?
“Ipit” literally means “stuck.” When applied to finances, it’s the mindset of always being trapped in debt. Instead of preparing for expenses, people rely on loans, salary advances, or pawning valuables to cover immediate needs.
It’s not just about emergencies. Sometimes, we borrow for things like gadgets, travel, or even simple wants—thinking, “babayaran ko naman sa sweldo.” The cycle repeats until we’re left with no savings and more utang than income.
Why Do Filipinos Fall into This Habit?
There are several reasons why ipit mentality is so common in the Philippines:
1. Low Income, High Expenses
For many workers, sweldo is just enough to cover bills, food, and transportation. When an unexpected expense comes in, the only solution seems to be borrowing.
2. Instant Gratification Culture
We live in a “buy now, hulugan later” society. Gadgets, appliances, and even food promos are marketed with installment schemes, making utang feel normal.
3. Lack of Emergency Fund
Most Filipinos don’t have savings for medical bills, repairs, or sudden job loss. Without a safety net, loans become the default.
4. Social Pressure
Family expectations, social events, and even “pakikisama” push people to spend beyond their means—again, ending up with utang.
The Hidden Dangers of Ipit Mentality
At first, borrowing looks like a quick fix. But here’s the reality:
- You lose a portion of future income. Every time you borrow, your next sweldo is already “reserved” for repayment.
- High interest rates trap you longer. Informal loans (5-6, pawnshops, online lending apps) can eat up your income.
- Stress builds up. Being stuck in debt affects mental health and relationships.
- Savings and investments never grow. You’re too busy paying old debt to think about building wealth.
How to Break Free from Ipit Mentality
Escaping this cycle is not easy, but it’s possible. Here are some practical steps:
1. Build an Emergency Fund
Even starting with ₱1,000 a month can help. Aim for at least 3–6 months’ worth of expenses.
2. Track and Control Spending
List down your daily gastos. You’ll be surprised at how small leaks (milk tea, delivery fees, unnecessary subscriptions) add up.
3. Practice Delayed Gratification
Instead of “buy now, pay later,” try “save now, buy later.” The feeling of buying something with cash is much better than paying utang for months.
4. Learn to Say No
Not every social gathering or family request is urgent. Prioritize your financial stability.
5. Start Small Investments
Once you have savings, try Pag-IBIG MP2, government bonds, or a simple savings account with higher interest. These small steps change your mindset from borrowing to building.
Blogger’s Corner
The “Ipit Mentality” keeps many Filipinos from moving forward. The truth is, it’s not always about how much we earn—it’s about how we handle what we have. Every peso spent on interest is a peso lost for your future self.
If you catch yourself thinking “utang na lang muna”, pause and ask: “What if I saved for this instead?” That small shift can mean the difference between being stuck in utang and finally achieving financial freedom.