(Photo from Agence France-Presse)
Worsening poverty plus rising food prices, and what have you got? More and more households are definitely going to the poor house if this keeps up. There are indicators everywhere that high prices aren’t likely to go back down anytime in the future. I remember what Rico Hizon said during a recent interview: We are importing inflation from the US and China. Everywhere in Asia, prices are going up.
Here are some tips from a MoneySense article on how to make sure you’re not badly affected:
Watch out for the warning signs:
- Uncontrolled spending and/or use of credit cards
- Having loans you are having difficulty to pay
- Not making and using a budget
- Living a lifestyle you can’t afford
- Lack of savings
To me, number five would go to number one. An inadequate buffer fund, absence of emergency stash – whatever you want to call it – should make ANYONE stop and take stock of your situation as if it’s the biggest red light on the street of personal finance.
I don’t expect those who are below the poverty line – that’s around 4.7 million families as of last count – to have any savings. That’s like trying to wring water from stone. Perhaps even the next tier won’t be able to sock away money, and that’s totally understandable.
But if you have a job, have money for make-up, movies, dinner in a restaurant, at least 10 pairs of shoes in the house, own an air-conditioning unit, have a closetful of nice clothes, I think you should at least have a one-month worth of savings in the bank for starters.
A recent survey showed that too many Filipinos who are actually in the middle-income group rack up credit card debt for non-essentials but have no savings. As the article says, simplify, simplify, simplify! Sometimes, simplifying – birthday and graduation celebrations for example – can be more fun and heartwarming. Think about it.
No matter how abundant you think your financial life is at the moment, poverty can still creep up on you. If the warning signs are present in your life right now, it’s time to take action and make some drastic changes. Take control of your money instead of letting it control you!
Poverty CAN creep up on you. I totally agree. Denial is a powerful thing.
April 9th, 2008 at 11:35 am
troy: amen to that.
April 9th, 2008 at 11:35 am
Ria, malunggay seems to be a better option. it grows along with just about any crop and is also a good source of food. at least that’s what i heard.
April 8th, 2008 at 1:40 pm
korg Says:
April 8th, 2008 at 2:10 am
the way i see it, regardless of whoever is the president will have the same “rice” problem. shortage in rice supply alongside rising food prices is a global problem. to be fair to Gloria, I have to admit she did a good job. the problem is not just her, its the entire government itself. we may not like her but we have no choice. for me she just happened to be the best person who can do the job right now.
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Wow! I don’t agree with you that Gloria Arroyo, Is the best person running the country. Only three President have the rice shorted: (1) During Diosdado Macapagal, (2) During Fideal Ramos, (3) During Gloria Macapagal Arroyo, The FAKE PRESIDENT.
Only during these 3 President the Philippines having hard times on rice supply.
April 8th, 2008 at 1:10 pm
exactly, take political rantings somewhere else. i’ve had enough of blaming and finger pointing when we ourselves don’t do our part. instead, let’s learn from these blogs on how to be more productive and not end up as one of the statistics.
April 8th, 2008 at 10:44 am
Why everybody is surprised of the shortage I don’t understand. If you follow the trend in agriculture these days, farmers are preferring/converting to plant crops that will be used for the booming biofuel business rather than for food supply. Wheat, corn, palm oil prices will all be going up (has already gone up but will be going up further) due to shortages in the food supply sector. We should be preparing for that eventuality or no amount of whining or blaming who is seated at Malacanang will make it go down.
Bottom line, going ‘green’ is a big booming business.