how do we register in the Oct 29 seminar?

The best way for Filipinos to deal with the crisis is “bawasan ang kayabangan”.

alvinf: please call Rachelle at 634-2204.

Junebug: I love that! You’re so right. hahaha.

Early on i have develop in my children the value of thriftyness and savings. The amount doesn’t matter, it may be trifle. What is important is the development of the virtue; what are the priorities, what are the unnecessaries that we can do without. You can just imagine a family where every member contribute to the same objective, crisis or not!

Mostly I’ve cut corners in my spending - I’ve sold my car, I’ve downgraded my DSL plan, I’ve applied for a rebate for my postpaid cellphone line instead of getting the free phone, changed my eating habits (healthier and cheaper snack alternatives) etc. but I’m still looking an alternative income source that won’t take too much of my time, hehe.

[...] on to point out that instead of hand-wringing, some sober planning is in order for ordinary people: Money Smarts » How are you dealing with the [...]

[...] on to point out that instead of hand-wringing, some sober planning is in order for ordinary people: Money Smarts » How are you dealing with the [...]

Is there a crisis? I still see a lot of people in the malls and restaurants.
It’s not surprising, Filipinos are one of happiest people (according to the survey) on earth. We are enjoying life. I don’t think a lot of people are aware that there is crisis. Wala ng matitipid ang majority of the Filipnos dahil matagal ng nagtitipid. Kaya enjoy na lang.

For me, try to earn more and live a simple life.

The best way to deal with a crises is increase your income. Increase income through blogging. Check out our new free blogging ebook at http://www.zdiaz.com/index.php/2008/09/29/finally-our-very-own-guerilla-blogging-ebook/

Most Filipinos love to spend, spend ,spend even if their salary or the money that they’re expecting to have is not yet in their hands. The result: ubos kaagad ang pera na hindi pa dumarating sa kanila. “Huwag pisain ang itlog na hindi pa nailalabas ng manok”. We should discipline ourselves with our spending habits.

This is a time when an emergency fund is very important. The usual advice of six months worth of living expenses may not be enough in this unusual time. Save more if you can.

We have been renting an apartment for the last 10 years and finally I believe I have saved enough for downpayment and my salary can now cope with the projected monthly amortization for a new condo. Our family is looking forward to buying a new condo. However, now with this crisis, I’m having second thoughts if i should proceed with this plan. I don’t know what will happen…will interest rates for housing loans go up? will i still have a job a few months from now? I’m having a fear of the unknown…

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).

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.)

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.

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.

[...] How are you dealing with the crisis? [...]