Recommend this book to those who want to know themselves more, learn more about personal finance and those who want to know certain discreet yet recurring human tendencies that hinder us from pursuing financial freedom.
Despite these numbers, it makes me wonder, where did all the money go?
There’s a saying strike while the iron is hot. It didn’t say spend while the iron is hot.
In spite of this development, there will still be some of our countrymen who will need to purchase single journey tickets every time, not because they want to be inconvenienced all the time, but because that’s all they can afford, or that they were used to the sachet economy mindset.
Banks still have a long way to go to tap the underbanked segments especially the countryside where access is very limited. Other sources are perceived to be easily reachable like pawnshops or money remittance business, which have more branches, less costly to put up and some of which even operate 24 hours.
Juan’s PHP1,000 in 2006 should be PHP1,395 in 2014 just to get by, keep up with inflation and retain the same purchasing power for the same level of expenses. With rising needs and standards of living (hence more expenses) and more mouths to feed, keeping up with inflation is not enough. A 40% return in 8 years is then, not enough. Now do your own math.
A cool economic concept cited is moral hazard. Formally defined as when one party engages in excessive risk taking because another party has agreed and is ready to absorb the impact of such risks.
BSP is planning to lower and tighten the LTV cap to 60%, which means future borrowers will have to shell out higher DP at 40%. This effectively makes the target market for home loans smaller since not everyone can easily afford a 40% DP.
Filipinos still prefer betting on lotto even if the odds of winning is very very small. But the odds of winning and burning the ticket is much much way way smaller. This is what happened to a man who claims he won the PHP12M pot but unfortunately, his ticket got burned by a flat iron. Odd odds.
I started late last year, wherein every end of day or end of week, I save my loose change, PHP5s and PHP10s. I considered these as expense already, meaning I don’t count these as part of my savings and assets in my personal SALN.
The demographic sweet spot is said to be the time when our population has below 30% of aged less than or equal to 15 while those aged 65 or higher is less than 15%. Which means 55% of our population is aged 16 to 64 are economically productive and income-earning.