Money Me

Happy 2011

2011-01-01T08:50:00.001+08:00

2010 wasn't really that bad for me. Above all, 2010 was about Life - enjoying it, preserving it, fighting for it, and sharing it with the few precious people who make an otherwise mundane existence truly memorable.

Wishing all the best for 2011, and for more entries for me here too...

I dreamed this, sort of.

2010-08-29T18:10:00.005+08:00

This book is out!!!

It's not exactly a 100% how I imagined my debut into the publishing industry will be but it is a significant step for me in realizing my dream of becoming a professional published writer.

"The New Boss"

2010-04-13T10:02:00.010+08:00

As some of you know, I have been on vacation for almost six months now. Very soon (or later), I know I will have to come out of this self-imposed sabbatical, either by force of economic necessity, or something else.

Right now though, I feel like a power plant that has been shut down and getting prepped to start again. Operations people would advise Management accountants that in modelling the cost of a restart, the latter should consider that it takes more fuel (and higher costs) for a plant to restart than it would while in the course of a regular run. So it is with me. I know that to get back to a regular work schedule, and all its unintended or intended stress, would take more of me. I am restarting, and I am starting to re-equip myself this early with the tools that I will need in my arsenal.

I do have an unshakable sense of self, and I am almost sure that my next job will involve a team to manage. Incidentally someone gave me a book which I now find handy and serves a good starting point for getting ready for my next journey. So for people out there who are in a similar situation, here is an excerpt of the preface of that book, The New Boss, How to Survive the First 100 Days, by Peter Fischer.

I do highly recommend reading the book.

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"A look at many client organization these days reveals pressure for success on a global scale. This means that innovation, consistently high standards and speed are of the essence in the face of less transparent and tougher competition. In comparison, cultural diversity and virtual relationships seem relatively straightforward. More importantly, the need to deploy resources flexibly means few executives have longer than three years to make their contributions felt - indeed many barely have 18 months. In addition to this, the growing complexity from organizations trying to respond to fast-changing technologies, legal frameworks and markets brings both the possibilities and pitfalls inherent in a leadership in transition into focus. Indeed, the objective of this book is to reveal the 'power of change' - that is to say, the opportunities for introducing change and preparing for eventual success over the inevitable pitfalls intrinsic to any transition process.

Gone are the days when predecessors overlapped with the new candidate to ease the handover. Instead, I find many new managers finishing assignments in one role at the same time as starting the new one. Whilst a new sense of promise at the start and a heightened excitement during the executive honeymoon remain, the rising numbers in leadership transitions point to growing pressures on managers to change and innovate. This sense of promise translates into a much-needed readiness to embrace change. As time is of the essence, new managers are tempted to push ahead with their agendas. After all, that was the reason for their appointment. It is easily forgotten that agendas need the support of key people and that, as a new manager, your ignore the less visible concerns, expectations, and achievements, at your peril."

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MoneyMe

(embedded image lifted from amazon.com)

(Customer) Service is About Happy Endings

2010-01-26T01:25:00.000+08:00

It costs more money to attract new customers than to retain existing loyal ones. Yet, the key to either is having a robust customer relationship mindset. If your interaction with your customer sucks, your business can neither attract nor retain customers. This is true no matter the size or complexity of your business model.

When I lived in Hong Kong, I was wowed on a regular basis by how their Consumer Banking industry makes it very convenient and efficient for their customers to transact business. While I bank mainly with HSBC, I've had transactions with the other banks, including Standard Chartered -two banks which also have presence in the Philippines - plus others, and I can say that Hong Kong does everything to make the banking experience as painless, even fun sometimes. You can argue this is because Hong Kong is a first world country. This to me is classic chicken and egg. Is a country and the businesses operating therein able to provide superior service because they are so-called first world? Or is it because of an outstanding service mentality that countries like Hong Kong join the ranks of the first world. Am I oversimplifying?

Last week, I visited the Philippine Islands bank, the same bank where I just opened an account the week before. I wanted to purchase USD 200, for personal use. Understandably, this bank offers more competitive rates to its account holders. Unfortunately, that day, I didn't have my ATM with me and I have not memorized my account number yet either. When I mentioned this, the teller made a face expressing displeasure. She said it would take time to retrieve my data if I just gave them my valid ID! WTF! And they had me already waiting to fill up redundant forms, just to get USD 200! My patience flew out the window, and I had to use my tone of displeasure!!! I told the teller then that I didn't care if she gave me the less favorable rate, I just wanted the transaction to be over with! Consider I was talking to the same tellers whom I opened the account with the week before. How difficult could it be to retrieve my information?

Of course, I thought of closing my account then and there, but realizing this bank is supposed to be one of the best, if not the best in the industry and country, I can only imagine what kind of service I'll get from the other banks. To date, my mind is still devising of ways to make my displeasure felt.

In contrast, it is rare in Hong Kong that you need to make a physical visit to the bank to transact. The online infrastructure is that advanced! And when you do need to visit the bank personally, everyone assists you to make the experience painless. The tellers even fill out all the necessary forms for you, and you just need to sign the same at the bottom. And they do this in the most efficient manner possible. I am not easily impressed by service but Hong Kong banks in Hong Kong get an all thumbs up from me.

Customer service is one of those keys to success that is often ignored, or just paid lip service to. It should be embedded within the core of any individual's work ethics. If we treat people we work with, or even friends we hang out with, as customers and treat them properly, we can go a long way in our personal careers, and businesses. Good customer service, which in its simplest form is really having good interpersonal relationships, streamlines all forms of interactions.

Do I believe that the customer is king? No. I believe that customers in whatever form they manifest are your equals, and must be therefore treated with respect. Customers should not be allowed to wait any more than is necessary. Customers should not be given bull! And where there are serious problems concerning the transaction, customers should be given information in the most transparent manner. Anything less will mean less business too, in the long term.

On a side note, after being away from Hong Kong for three months, it's really the efficiency and high level of customer service in that city-state that I miss the most. Tragically, I don't understand (fine, I do a bit) why the Philippines cannot achieve the level of efficiency so common there when we have so much talent here. Oh well...

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MoneyMe

email: steve78ph@gmail.com for questions

"Rest If You Must..."

2009-09-08T20:21:00.016+08:00

"... but don't you quit."

In a month's time, I will be without a job. After ten years of working (hard), I am taking some time off, a few months to a year :-). How did it get to this point? Well, really a combination of both uncontrollable events, and personal decision. As I alluded to in a previous post, my current role has been made obsolete, and while the company I have served faithfully declared an unwillingness to let me go, the alternative positions offered were not of my liking really, and to accept them would not have been fair. So in a way, I am a victim of what is happening as a result of the global economic downturn. But not really a 100% true. In our language, umarte din naman ako.

It was no easy decision of course. My nonchalance now has only been made possible because of the gut-wrenching process that I had to go through. My emotions are still a mixed set until now, though. Not surprisingly, my bipolarity has spiked just as much too.

Resting, but not quitting. That is what I am doing. Exciting. Scary. Not for the weak.

You need to be a hare in this race called life. Not the tortoise, no matter what that fable said. The hare was just a bit irresponsible, sleeping (?) and allowing the very slow tortoise to win that race. That hare deserved to be barbequed.

I imagine with all that is happening around us, a lot of people are considering to take a breather from work. Some don't have a say in this, and are unilaterally let go by their organizations. Others, who may be to a degree fortunate to be left behind, may find the remnant organization demotivating - more work, same or less pay, increasing uncertainty, no security. Demotivation or low morale is like being sucked off of all your happiness by Dementors. You need to be a Harry Potter to cast that Patronus spell. Still, others just want to, simply because they can.

Everyone I have consulted regarding taking my own sabbatical was unanimous in agreeing to the merits of the break. It is as normal as the need for sleeping on a daily basis, or the cycle of boom and bust of economies. Yet, as mentioned, it is not for the weak. One needs to be able to plan the break in advance. Yes, even those who may suddenly find themselves fired without warning.

This means that at any point, everyone needs to set aside some resources (money) and contingencies for such an event. And really, trust me, no one is expendable. When that company's bottomline bleeds, you are really just a resource in this whole capitalistic game. I have nothing against capitalism, mind you. It is just how it is. Some people say you need about the equivalent of 3-4 months salary as contingency. Who knows what the real buffer level should be? Only you, of course!

For those who have the benefit of being able to plan in advance, then the process becomes more exciting. more painful too, since it becomes protracted.

As a final point perhaps, I have been asked what I plan to do during my break. Take a break!

A break in itself is a productive endeavor. It allows your mind and body to recharge. However, should you fear becoming unproductive, it also doesn't harm to have a back up plan for productivity. Learning a new skill (driving for me) for example, is one.

(will be continued if something brilliant comes up my now-getting-relaxed-mind).

Tell Me Who Your Friends Are...

2009-07-19T19:25:00.001+08:00

During my University senior year, my love for numbers and Finance had me thinking that my career path would lead me to a lucrative position in the banking sector. In fact, most of the resume submissions and interview rounds I did at that time were all in this industry - probably about 95% . The remaining 5% were for FMCG, Manufacturing, and other Service-related industries. Not in my wildest of imagination did I think that I would be happily carving a path, although still in Finance, in the sports apparel/footwear retailing business. That fortunate twist came about only because of the phenomenon of knowing someone in the right place, at the right place, on the right time.

Crunch time! It was just a few weeks before graduation, the urgency of getting a decent-enough paying job was gnawing at me (at that time, our family finances were at the lowest that seriously I thought then that if I couldn't find a job right away, I would have had to pack everything and gone back home to the province after the graduation march!) . It was here when I was approached by my classmate who informed me that her sister, then the Chief Finance Officer of Brand N, was looking for a someone with street-smarts (diskarte) to be a part her start-up Finance team. I was eager, and right there and then, hurried to schedule an interview. After that, the rest, as they say, was history.

I got the job. I did good at it. And on top of that, through my first boss, got the first of what would be my army of Mentors.

Did I get the job because I was qualified? No doubt. Hindsight and what my performance has been will attest to that. However, would I have gotten the job if I didn't know my classmate who happened to have a CFO-sister? Probably not.

My intention here is not to declare that this is the one and only path to landing yourself a rewarding career! Nor is the goal to promote patronage-without-merits mode of advancement that many people in power seem to practice these days. It is simply that in life, the relationships - professional and personal and everything in between - we evolve are very important.

It is not about asking people you know to make exceptions for you. It is not about asking them to bend the rules for you. Sometimes it is just about the knowing you, and what that personal knowledge and potential recommendation - a seal of the strength of your character - which can make a difference. Ceteres paribus.

There are a million possible legitimate ways - without resorting to corruption and patronage politics - that knowing the right people can help you!

Growing up, I have had the wonderful opportunity of knowing some of these people willing to mentor me, and share with me their time and their wisdom. I have also been blessed with colleagues, and staff, and friends who continue to expand my personal and professional alliances and networks.

A network is dynamic! It is living! It is mutually beneficial! More importantly, it should be right, and beyond reproach. Anything less would be not sustainable.

Sadly, we don't get to be taught how to build a healthy network. It is something that we need to consciously learn over time, and tailored to how we plot our life to be in general.

At 31, my life is definitely not yet in a place that I can say, "This is it." However, what I am certain, and what I know as truth is this: that while I take full ownership and responsibility for all my choices and decisions, the quality of both has been amplified to the extent that my network of mentors, colleagues and friends has been supportive - with their advise, with their inputs, or simply for being wherever they were at the time when I needed them.

So yes, it is true what they say, "Tell me who your friends are, and I'll tell you mine."

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MoneyMe

steve78ph@gmail.com

Earning my stripes (a repost)

2009-06-28T13:10:00.000+08:00

This is a blog that I originally posted on my FB early this week. As this is quite personal in nature, I initially decided to just keep the post in my other sites. However, I realized that its subject fits right into the matter of Personal Finance as well.

Read on...

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In one of the links that I posted on my Facebook site, the adidas Group revealed some time May this year, as part of its global streamlining process, that, “..as a consequence of the increased complexity, it has been decided to take out one complete level of management – the regional office.“

As an insider, I knew this statement to be true. I also knew that such initiative was started even before this whole economic crisis hit the fan. Of course, the sense of urgency increased tremendously as markets all over tumbled down.

As a believer of the capitalist concepts of efficiency and effectiveness, I supported the move. I share in the belief that too much complexity that hinders an organization to service its end-consumers should be significantly reduced, if not eliminated.

As a professional, I recognized that an honest-to-goodness review of our current processes and structures at work could affect me potentially negatively. There are a million possible valid ways that this could happen, and only arrogance, the likes tyrants have, would have blinded me from seeing these.

As a person, I geared myself for the worst case scenario, hoping at the same time that I wouldn't be so bloodied.

Yesterday, June 24, I had my conversation with my line manager and our HR.

To be quite honest, I went in expecting the worst. I came out with a smile.

After weeks of exploring opportunities for me to continue to stay and contribute to the organization, and finding none available at the moment that suits the needs of both the organization and mine, it was mutually agreed that come December 31, the relationship would come to a mutually agreed upon termination, subject to certain contingencies happening or not happening.

By close of business hours on December 31, in the most likely scenario, I will be joining the ranks of the unemployed, and ending a relationship that can only be described has been mutually beneficial.

I say most likely because between now and then, and as I have agreed to stay on until December to help facilitate a smooth transition, the possibility of still being with adidas remains, should an appropriate assignment or opportunity come up. Nothing less than the perfect fit should satisfy either the company or me!

And yet, I write this piece now because my heart is overwhelmed by what could be!!!

I have long wanted to take a lengthier vacation to regroup internally, but have not been able to do so due to the demands of work. With ample time to prepare, prudent spending and the generosity of the company, I will be in a position to sit back and relax for a while. Kit Kat could see their sales numbers shoot up!

I see the opportunity to finally focus on finishing my derailed CIMA qualification!

I can sit down now to seriously attempt to write my own book!

The option to explore other continents has materialized!

And here's what I see is the clincher: I see the hand of the Divine enabling me to consider doing more than the Facebook Group that I started for the 2010 Philippine National Elections! Be on the ground, being more online, getting really involved, in every sense of the word, in the struggle that is the Good vs. the Evil.

If and when this happens…

I will have spent more than six years of my life with adidas. It will have been a truly blessed and enriching experience!

There is a tinge of sadness of course knowing that the end is near. I remember that moment when I decided to join the adidas Finance team in the Philippines, then convinced by one of my mentors (She remains one to this day!) to join her team, dazzled only by the opportunity to make a difference and be a real contributor. Such powers of influence she has, I jumped in, taking even a significant pay cut in the process.

From that point onwards, the spectrum of color, the range of possibilities, the variety of options have only been increased, widened, exponentially.

And yet, like the Elves of Middle Earth, it does feel that my time has come to go sail into my own West.

Isn't it a fitting end that the same organization which has helped me grow professionally will, once more, in its final act of letting me go, lead me to doors of limitless possibilities? Who knows, one door can still lead me back to the Three Stripes!

There will be a proper time, in the near future, to say my goodbye’s and my thank you’s.

adidas. Hong Kong. Friends. Estranged Friends.

See you soon.

Bad Things

2009-06-17T19:05:00.000+08:00

In an ideal world, things are simpler.

In theory, if you put in a day's work, you get a day's pay. If you work and do your best, the rewards would come in equal proportion. Competition is alive but it is of the healthy kind, the one that motivates and drives you to be the better and the best of what you do. Everyone has a place under the sun. The sun is continually around, until sunset comes, and its satellite takes its place.

Sadly, the Philippines is not such a world.

Wealth is not always earned rightfully and righteously. Rights are often conjured and imagined . And more often than not, people hear the words uttered, "Bad things can, do and will happen to good people."

Seeing no one can rightfully claim absolute goodness in deed, worse/st things that happen are often taken with a degree of equanimity.

To accept such premise may be pragmatic. It could also be the undoing of such undertakings as MoneyMe. For while we promote ways to get more and get rich the old fashioned way of hard work, diligence and intelligence, there is always the unknown and known variable that the bad elements out there can take everything away from you at a whim.

Sure you can put up a fight. You can win sometimes. You can die sometimes too. Oh how many the sad stories of people defending their basic rights to a cellphone lose their life to criminals and thieves intent on claiming that which they have not worked for!!!

Is the death justified?

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In a society where personal rights and enrichment are possible, this framework of possibilities can only be guaranteed by a corrupt-free government that provides the objective platform upon which grievances can be heard, among others. Capitalism will not work if the same society is ran by thugs without respect of human rights, property rights, and everything else that is right.

No rational way of life is possible under conditions of irrationality.

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There is a scene in The Day The Earth Stood Still when in the attempt to convince the alien species to spare humanity from destruction, a Nobel laureate argued, "At the brink, at the precipice, people can change (for the better)." Or something to that effect.

I hope that my beloved Philippines is in this brink in 2010.

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"Bad things can happen to good people."

But.

"All that is necessary for the triumph of evil is that good men do nothing."

I may be over reaching, but surely there is a causality here that is just too obvious to ignore.

MoneyMe

email: steve78ph@gmail.com

Study Now, Earn (More) Later

2009-06-03T22:21:00.001+08:00

I am an advocate of continuing education. I am an advocate of using education to better your lot in life.

For some people, a Chartered Management Accounting qualification may be the next path. I am thinking it could be for me.

Below I provide an overview (directly lifted from the cima website) of what Management Accounting is.

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Management accounting is the practical science of value creation within organisations in both the private and public sectors.

It combines accounting, finance and management with the leading edge techniques needed to drive successful businesses. Management accountants operate in financial and non-financial roles throughout organisations and carry out all their training and experience requirements within business itself, providing them with a unique insight into how their organisations operate.

Chartered Management Accountants are financially qualified business leaders

They operate within all areas of organisations, in both the private and public sectors, driving success and creating value through a combination of the application of leading edge techniques and an in-depth understanding of the businesses in which they operate. Whilst qualified in accounting and finance, their focus is commercial and forward looking, pre-empting and adapting to businesses’ changing needs.

Specifically they:

Design, implement and manage (automated) integrated information systems that combine financial and non financial data to provide insightful (electronic) reports to assist in managing performance and inform decision making
Design, implement and manage (automated) transaction processing activities, including financial accounting, payroll, purchasing and payments, often carried out in a shared service centre
Design, improve, measure and manage end-to-end business processes and activities, often extending beyond the organisational boundaries, ensuring delivery of optimum efficiency and effectiveness in the use of resources
Work as an analyst; consultant; relationship, project and change manager in support of the business; and as a business partner integrated into divisional and operational units and processes throughout the organisation, bringing commercial and strategic insight, innovative thinking and a collaborative approach
Take responsibility for formulating and managing organisational policy, strategy and objectives, producing business plans, forecasts, scorecards, cost/benefit analysis and budgeting information as appropriate
Design and implement excellence in corporate governance, including risk management, internal audit and controls, company secretarial, corporate social responsibility and board and stakeholder reporting
Determine capital structure and acquire and manage funds. Carry out due diligence in mergers, acquisitions, business partnerships and joint ventures.

Reference: www.cimaglobal.com

http://www2.cimaglobal.com/cps/rde/xchg/SID-0A82C289-9A4836EC/live/root.xsl/32609.htm

Note: I am currently a CIMA student, and this post is neither authorized nor endorsed by the CIMA organization.

email steve78ph@gmail.com

Give Credit When Credit Is Due

2009-05-30T20:57:00.000+08:00

One of the valuable lessons my Ma taught me about basic good manners and right conduct is that when you borrow money, you must pay on time. However, when circumstances do not allow you to do this, Honor demands that you suck it up and inform the person you have borrowed money from regarding the delay. While the lender would most likely verbally abuse you and insult you, it's his integrity that he's throwing away, not yours.

The whole point of borrowing money is that the need arises from a temporary shortage, and the debt can be paid off using future excess/surplus cash. It does not make sense to borrow money to finance a lifestyle that is not affordable. It is irresponsible to do so. There are exceptions to this of course, i.e. student and education-related loans, or study-now-pay-later schemes. These exceptions would be similar to a company's taking on more debts (even beyond its present paying capacity) to finance investments in new assets to increase its future production. Such moves really make a better lifestyle more affordable so to speak in the future.

People who are responsible should not be afraid to take on debts since this helps to facilitate cashflow management. With better cashflow management, more informed spending choices can be made.

People who are smart-er could use the credit system even without additional cost to themselves and still come out big winners.

1. Take advantage of Zero Interest Installment Schemes.

Most credit card companies offer this in conjuction with department/appliance/electronic stores. I see this at least in both the Philippines and Hong Kong. Some finance practitioners say these are really not zero interest since the costs would most likely be already imputed in the supposed cash price. Yes, but you'd be at a disadvantage if you do pay these types of purchase in cash since you'd technically be subsidizing the next person's credit purchase on installment.

Still, some people with cash shy away from this promotion under the misguided belief that they are better off having no future obligations. The real issue though here is that these same people lack the discipline to set aside that same amount (somewhere in a bank where it can earn some interest at least) and not spend it on something else more frivolous. Having the cash set aside instead of paying the purchase lump sum actually gives you some flexibility should an emergency arise (hospitalization, burial, etc). How many times have you heard people regret buying a new Home Entertainment system when they could have used the cash to help a relative who got into an accident? Or some other variation of this?

2. Use your credit card and accummulate points that can be exchanged for rewards.

I saved more than HKD 1000 when I used the points I accummulated to redeem the computer bag that I am using now. There was no cost to me. I just used my credit card for my monthly spending (groceries, etc) and made sure to pay the debt on time. The bank is unable to charge me interest, I earned points, and I got my rewards.

3. Use your charm and have your annual fee waived.

Speak up and when that annual fee comes up in your credit card statement, give your customer representative a call. If your statement is all current (e.g. no overdue balances), you can always bluff (or be real) about canceling your credit card because you don't want to pay the annual fee. Even with the current supposed credit crunch, credit card companies are still lining up offering all kinds of incentives to new joiners. If you have a healthy credit history, they'd surely want to have you in their list.

Obvious as it may seem, the key really is DISCIPLINE. Without discipline, none of the above would work. But nothing else really can work sans the D word.

Don't be afraid. Use your credit card. Wisely. And if people ask you why when you have the cash, mouth that line made famous by the movie Bikini Open, "Because I can."

And you can and you should take advantage of all your credit lines.

email: steve78ph@gmail.com

I am not alone. And that's a good thing.

2009-05-17T16:25:00.000+08:00

While I do want this site to be fundamentally about Personal Finance, I do take a more frivolous, if not a flowery approach to the topic's discussion.

For people with more than the rudimentary understanding of Finance, and those who are dead serious at looking for ways to manage their finances for example, a google search of the words could give you a million results, a lot of these definitely going to be more serious than this blog.

For now, I refer you to two websites. The usual caveat goes that you read these, and follow their suggestions, at your own risk.

http://mindyourdecisions.com/blog/
I got this link from a friend, and I find the site to be quite informative, geeky even, which makes me smile even more. Game theory, yes! Very A Beautiful Mind. There are free spreadsheets too that you can download so you can track your "friends" and "enemies."

http://www.investopedia.com/

The link title should give u an idea of what the site is all about. Even better if you visit the site.

P.S. The creators of the above links do not know me (yet) and have no idea that I am recommending their sites to you. I don't know them personally too.

MoneyMe

Comments and Questions to steve78ph@gmail.com

Taking it from Scarlet

2009-05-14T12:30:00.000+08:00

"As God is my witness, I swear I'll never go hungry again," so declares Scarlet O'hara in one of the rousing scenes of that great classic, Gone With the Wind.

Unfortunately, it takes more than a classic line to ensure that one does not go back down that path of hunger. Fortunately, it has been proven and tested (personally, if I may add) that you can shout this line at the top of your lungs, mean it, and live to live it.

LIVE, for that is the essence of wanting not to go hungry again, isn't it? And as classic as the chicken and egg debate is, for you to be able to live fully, the only prescription (common sensical!) really is: Live within your means!

Four words that can be interpreted in so many ways. Is living just having to eat three square meals a day? Is it being able to send your kids to the best schools in town? in the country? in the world? What if you don't get to travel another continent at least once a year, are you living less of a life than your neighbors who could?

Within your means is just as problematic. Our current woes - banks collapsing under the weight of unpaid debts (aka nonperforming loans or assets) among others - speak volumes about how liberally individuals have interpreted what within their means mean.

There is a song that says, Life is what you make it. YOU will have to define what life is for you. But remember, for each point, there will be costs (peso or dollar amounts or whatever currency you wish, you can use the currency converter in this site handily) attached to them.

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So it is said that if you know your enemies and know yourself, you will fight without danger in battles.
If you only know yourself, but not your opponent, you may win or may lose.
If you know neither yourself nor your enemy, you will always endanger yourself.

(from The Art of War)

Living within your means requires discipline, and knowledge. I offer two specific pointers to you now to help you get by.

(As this is the first prescription post in this site, heed these: (1) that while definitely useful and relevant, you take my ideas at your own risk, and that (2) these are not exhaustive remedies, i.e. there may be other better solutions out there. I write to satisfy my own caprices.)

1. Know your enemy. Literally. Figuratively.

I baffle myself at times, and I know this to be true for a lot of people, when in the middle of the payroll period, I stare at my bank balance and wonder where in Hong Kong or Manila or Asia my money has gone. It is a shameful thing to admit but it is true. This is irresponsible!

Towards attaining fiscal (a fancy word that really denotes just financial or budgetary) independence, it is imperative that we understand what our expenses (the items we spend money on) are. Rent. Tax. Transportation. Cellphones. Drinks. Drugs (Over the counter or otherwise).

Write these expenses down. Use a columnar notebook. Or use Microsoft Excel or Lotus notes. Just write them down. Understand their nature. You will notice very quickly that some are recurring items with fixed amounts. Some can be avoided or reduced easily (drinks, drugs). Some cannot be anticipated (hospitalization, burial), while some are one time big time amounts (vacation in the US, buying that plasma tv).

Once you get the hang of noting these down you'll see playing around, shifting spending schedules, can be lots of fun.

One benefit of doing this is that with a personal budget of expenses you see over time (e.g. across 12 months in a year) which months you are tight on cash, and which months you will have a surplus, when you can then plot additional expenses (getting that new laptop) all within your means.

How obsessive and controlling are you? Your answer here would depend if you want to track just the major amounts rounded to the nearest hundreds, or jot them down up to the last cents and last decimal place.

Interestingly, I have observed that a big challenge to living within your means is the matter of appearances. Don't we sometimes just want to spend something more than we can afford because we don't want our nosy neighbors to say that we are one of the have-nots? Honesty is needed here. You need to ask yourself, does your "enemy's" opinion really matter? The rational approach is to take the high road and live it real. Kebs. I have to say though, there are specific cases that it is ok to spend for show (hello, when you have to meet your ex-lover and his current beau!?!?!).

2. Know your friends. Literally. Figuratively.

If your expenses are your enemies, your sources of cash are your friends. Let me correct that, your sources of funding including credit cards, and the Philippines's Social Security System (last time I checked almost a decade ago they offered 12% annual interest on your loans, vs. 42% annual interest from most credit cards) are friends. The more friends you have, the merrier indeed.

And friends, real friends, that you don't have to show off to, can help. In times of dire and sudden cash needs, they provide a source of credit that are often interest-free. Suck it up. Swallow your pride and call them up. There is of course a certain way that you must behave (at least if you want to borrow from me) that must be followed. Common courtesy I would call it, but this will have to be a topic for another post.

Sadly, friends can quickly turn into enemies so you need to track them too like you would your natural enemies, else you could get mired in credit card debts, foreclosure proceedings, or lost credibility with them human ones.

MoneyMe

Leave your comments or email steve78ph@gmail.com.

Brink

2009-05-13T14:50:00.000+08:00

It does feel like it's the end of the world.

Natural disasters. Epidemics and pandemics. Credit Crunch. Inflation. Quarantine. Lock down.

It does feel like a doomsday oratorical piece I have delivered when I was 12.

And how overwhelming for our generation to be given this opportunity (non-choice) to make decisions that have such high-stake implications!

As individuals, and most especially those not dabbling or swamped in what has become a messier discipline of being socially involved, we feel some detachment - that our woes can only be solved by others in high places: finance ministers, health ministers, CEO's, everyone else, the Others.

But really, without sounding condescending, our woes, and their solutions are just the sum of the individual choices and decisions we take.

Should you wear a mask to go to work to help prevent the spread of the swine flu virus, or just to deliver a message of solidarity with our compatriots in Mexico and the US, and all those xy countries already reporting cases of mild/severe swine flu?

Should you buy that ridiculously expensive bag and simulate GDP growth by increasing private consumption? Or should you save the money somewhere in a bank that might go under, crashed by the weight of its nonperforming assets and subprime loans?

What are nonperforming assets? Can subprime loans be primed?

Should I drink tonight? Should I watch Angels and Demons this weekend?

I don't plan to seek answers for all these questions for you. These are my questions too. And while by profession, and specialization, I am allegedly better equipped to grasp these issues, I write this blog to discuss topics that are not about me. :-)

I write mainly to write. If there are positive social externalities to this blog, then so be it!

This will be about the bigger picture! Don't blame me, though, because I fit myself into pictures - big or small - quite nicely.

Money Me.

For comments, email: steve78ph@gmail.com