Thursday, July 12, 2007

Pinoys; earning and spending analysis

Yesterday, I was watching the news back in the Phils. They were showing how Juan dela Cruz spends his hard-earned money. The reportes took several individuals, and profiled their earning and spending. They also interviewed a professor from UP, a financial consultant, and a sociologist. The results are very true, and very educational.

 

1.       Pinoys are having the culture of ‘earn-so-you-have-something-to-spend’ mentality, and this is passed down from one generation to another.

2.      When it comes to money, Pinoys tend to value people more than utilities. Those closest to them get the most benefits, but this also includes the circle of friends within their community. The ‘utang’ is extended outside of the family.

3.      In general, Pinoys don’t have savings. The situation simply does not allow that to happen.

4.      The media and advertisements are focused more on spending, rather than saving and investing.

5.       The Pinoy is not ‘tamad’ because of the government. The Pinoy is not ‘tamad’ because there is no job. The Pinoy is not ‘tamad’ because life if hard. The Pinoy is ‘tamad’ because he chooses to be.

 

Some employees who used to work in the offices with a good-paying job and left their jobs to start their own business was featured. There is also the ‘magbobote’ who started out so hard and so small, but with diligence, patience and hard word, were able to make a living, and an even better living afterwards. The kids were schooled and graduated. They were able to erect a concrete house. And they remain to be ‘magbobote’ until now.

 

The financial consultant gave some advise about savings, which were in the form of questions. He simply asked that, if you were to saved, you must know what you are saving for. If you were to invest, you must know which one to invest on, and how much. Similar to starting a business, he gave 3 questions that we need to answer before investing:

1.       How much should I invest? How much will be the return?

2.      If the business/investment fails, how much can I lose that I can bear (without a heart attack)?

3.      If I get out of the business/investment, what will I do next (to continue living)?

 

It is also a sad fact the Pinoys, up to this time, are still very much under the ‘colonial mentality’, that the best commodities are the imported ones, and simply, that the best items are those made by other people from some other place, and not those from the Philippines. If only the Pinoys knew that Phil-made items and Phil produce are very much sought-after in many parts of the world.

 

The Philippines still has a long way to go… maybe backwards. CS Lewis did say that there is nothing in going backwards, especially when you knew that the way you are going is wrong…

 

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