Finances On The Edge Photo by DeadAir
For the purposes of analysis and policy-making, there is no escaping the pounding on the table and the endless debates on what caused this crisis, who is to blame, what could have been done to avoid it etc. etc. But at the end of the day, reducing all that talk to doable measures is a process that could end to be as convoluted as the shadow play that caused this crisis in the first place.
Personally, I would rather focus on things that we all can do—now—to deal with what’s happening. After all, crises are part of life, whether financial, emotional, relationship, spiritual. They will happen, again and again. Only the details will change, but the fact that they will railroad our lives and make us shift our priorities will not.
An excellent series in the Philippine Daily Inquirer has been showing readers how different households are dealing with the crisis. Some are moving to condo units near mass transit systems to reduce travel time and stress, some are really cutting down on expenses especially dinners outside the home—even if they are only trips to fast food places.
Shoppers are also going for lower-priced items and dropping non-essential ones from their grocery list and dropping their brand loyalties while others have shifted from using gas for cooking to sawdust, charcoal and rice husk.
The Hotel and Restaurant Cost Controllers Association of the Philippines (HRCCAP) have finished another survey of groceries in Metro Manila and concluded that Cherry Foodarama is still the lowest-priced grocery in the Metro, while South Supermarket and Waltermart (surprisingly) have the highest prices.
Cooking oil and canned goods’ price increases were steepest. Supermarket shoppers can take advantage, however, of vinegar, soap and bathroom tissue freebies, which store owners use as a marketing strategy to attract buyers since they have been reporting less sales recently.
We can talk till we’re blue in the face about investing, but the truth is, increasing earning power and practical habits on reducing spending can affect our personal finances much more significantly.
It’s a good thing that Filipinos are masters of ingenuity, and time and time again, the best of us have adapted to the numerous financial crises we have experienced in our history.
Another way to deal with the crisis is equipping yourself with the knowledge and determination to make it through. Your favorite public speakers Francis Kong (The Right Pursuits In Life) and Chinkee Tan (The Right Perspective On Money) have teamed up with Efren Cruz (Prosperity Begins with an ‘S’) and Randell Tiongson (Managing Personal Risk and Insurance) to help you weather-proof your personal finances.
Details: October 29, 2008, 1-5 pm, Makati Sports Club. Cost P1,800. Early bird rate: P1,500. Please call Rachelle at 634-2204. See you there!
How about you? How are you dealing with the crisis?
April 30th, 2009 at 9:36 am
[...] How are you dealing with the crisis? [...]
October 1st, 2008 at 7:04 pm
started out on 2 new investments this year. In all, investment takes 70% of my monthly savings. I guess i’m stopping as i have already 3 insurance for moi, daughter, and mom. Good that i stashed a time deposit at chinabank to keep me sheltered. It is good for one month’s pay though so ’save and scrimp’ is still the call for the day.
October 1st, 2008 at 1:17 pm
Drastic crisis requires drastic solutions.
This year we bought a property in Colinas (2 years zero interest) & 2 more condo - one in Ortigas & 1 in Makati (payable in 4 years with 20% dp). Unfortunately, my wife bought another house & lot in Filinvest worth P3M paying it 20% dp & 2 years to pay with PSBank who hasn’t release the loan yet since we applied from July 01, 2008. Anyway that is another story.
Spending spree is over as far as acquisitions are concerned and budget season for 2009 should be over by October 30.
One thing with expenses & income is that it is basic math or numbers or projections that you can work with. Having a realistic budget and working on it will sail you smoothly all through out the year.
Although most of the time we tend to change the plans for the entire year we still make sure that we are still within the budget. Usually we allocate 15% to a drastic 25% increase in inflation meaning increasing your grocery expenses from 2007 to 2008 by 25% - imagine, its projected.
But the most challenge here is not the budgeting part but rather the influx of income. Having more sources of income or more baskets for eggs is helpful.
Therefore I suggest couples to start budgeting their expenses for next year in a realistic way - by considering at least 20% inflation rate & try to be innovative in having other source of income. Change mindset from a simple employee to self employed and eventually you’ll end up to be a business owner one day.
October 1st, 2008 at 12:42 am
I am predominantly dealing with the crisis in the following ways:
First, my family and I stay home. We may order some pizza once a week but for the most part we stay in and watch DVD or Cable. This saves us quite a bit in parking, gas, recreational expenses and food.
Second, with the money that we have saved, we make small investments here and there by buying from people who believe that the world will end soon. As the old adage goes : “When there’s blood in the streets –BUY.”
In all, I actually believe that what is happening is HEALTHY and NECESSARY for the future. The current financial set-up was too easily abused and it is good for some of these old institutions to fall in order to make room for new ones. (Remember, these entities / industries were among those who, barely 10 months ago, declared record salaries and bonuses to themselves.)
September 30th, 2008 at 7:39 pm
I’ve always been very frugal, and the fact that I earn in dollars and spend in pesos makes things a bit easier when the peso weakens. So the financial crisis doesn’t really have a big impact on me because I’ve already developed those habits. Also, I have an emergency fund that will “save me” if I suddenly lose my job or have unexpected big ticket expenses.
But the rising cost of groceries does irk me, especially since I often have them memorized (unintentionally).