Skip to main content

It's a Common, Broken New Year's Resolution Among Filipinos to Do Better with Their Finances and Economic Knowledge

Happy New Year, right? There's this statement in Cebuano that says, "Sa Disyembre nag lipay-lipay. Sa Enero, naglikay-likay." For non-Cebuano speakers, it means, "Enjoying all December. Fleeing in January." It's because of the bad habits that are common during the Christmas season. I wrote an entry talking about when a Merry Christmas leads to an Unhappy New Year. After Christmas vacation, it can be common to talk about New Year's Resolutions. Sadly, there are resolutions meant to be broken or resolutions on paper only. Several people finish high school, go to college, get a job, but never gain the necessary knowledge of economics and finances. Instead, they continue to live the same habits year after year. Even worse, the same foolish behavioral patterns get passed down from parent to child to grandchild.

Still stuck with financial habits that put one in a financial dodo

The New Year starts and it can get funny. I tend to hate December because of the foolish behavior people engage in. It can even get worse during New Year's Eve. Back in 2022, I wrote an article where I discussed complaining about the inflation of basic goods while still buying firecrackers. The amount of firecracker injuries year after year points to one thing--broken New Year's Resolutions. I remember that ad back on TV in the 1990s. It was a hand with missing fingers (but it was obviously edited) where a student says, "My New Year's Resolution is that I will not play with firecrackers anymore." It was meant to be a warning. However, some people still foolishly practice it--in the name of tradition. In logic, that's the Appeal to Tradition fallacy. How many of these firecracker injury victims bothered to even buy health insurance? Some people may even think of insurance as a burden while they enjoy spending on useless stuff. 

Certain things can be traced back to December. January is the beginning of a new cycle. Some people just refuse to learn to budget their money wisely. Year after year, some people still do the same foolish habits. It's because habits learned in January can get carried over in December. Some people lavishly celebrate during the Noche Buena (read here) because it's a habit all year round to do something similar. For example, one could think about how people tend to get payday euphoria, resulting in dumb ways that drain the paycheck (read here). Some people still expect instant riches. Some people may have lost large amounts of money gambling but they still gamble anyway, hoping to get rich quick fast. Some people may continually invest in get-rich-quick activities, never mind that previous schemes have failed miserably. However, they still keep doing it anyway! 

It's common to see Five-Six Lenders roaming during January. They can abound during December. It's because people tend to borrow more than they can pay. Some people might even foolishly think that Indian restaurant owners will loan them money (read here). It may be a common sight that I couldn't eat in an Indian restaurant because Five-Six Lenders have occupied the parking lot to eat lunch. It's not easy for the Five-Six Lenders to go around, finding the people who owe them money. I could imagine people are probably hiding from their creditors, both legal and illegal. Right now, I can imagine the clock ticks when all types of creditors will roam around, looking for delinquent debtors. It's a delinquent debt that could've been avoided if they learned to manage money wisely. 

But some never try to change their habits. Instead, they're still stuck with it. They still practice the same old foolishness of spending more than you can handle. They still prioritize pleasure over work. That may explain a typical workplace. In fact, the other AIDS epidemic isn't the STD but the problem of As If Doing Something (read here). Someone can put up a front that they're busy but they're actually doing something irrelevant to work. The worst part is they wonder why their financial standing never improves. 

Still stuck with bad economic knowledge

Above is the common demand of some idiots, young and old, to have #SahodItaasPresyoIbaba. In English, it means, "Increase salaries, lower the prices of goods." Some people even go as far as to believe that profits are merely unpaid wages. Like what? Do they even realize that companies need profits to survive? Of course, people must be prioritized over profits like family must be prioritized over money. Just because something is of lower priority doesn't mean it can be neglected. Sure, employers should prioritize the welfare of the people first. However, how can one even prioritize the welfare of people if there are no profits? How can employers increase salaries without increasing the prices of goods and services?

Business & Plans

Let's think about simple accounting. Salaries will always be part of the cost of production. Salaries would fall under the Selling, General, and Administrative expenses. If we look at the accounting cycle, the profit is barely half of the sales. Salaries are paid and they're deducted from the sales. In short, the salary, not the profit, belongs to the workers. Of course, prioritizing profit over people will eventually destroy profits. A company whose workers don't perform well will eventually suffer long-term losses. Companies that want short-term gains will never get bigger long-term gains. If there was no profit then how can the company give employees their benefits and increase their salaries? Are these idiots suggesting that the company should "just borrow money", never mind that the money has to be returned with interest?!

Even worse, it's already 2024 last year and it's 2025 this year. However, some people are still living in the mentality that FDIs are invaders (read here). That's probably why some people got happy when Jollibee opened in UK but got mad when FDIs had plans to invest in the Philippines. They probably thought Jollibee's opening in the UK was an act of invasion. They still get stuck with the lousy mindset brought by the Filipino First Policy. They still think that until most businesses are Filipino-owned, the nation will never see progress. Even worse, I can mention the late Lee Kuan Yew and they can mention the late Flor Contemplacion (read here), or that the former was a dictator. Again, Flor was already proven guilty, and FDIs, when properly regulated with reasonable restrictions (which equity restrictions aren't part of them), can help the Philippines!

The 1987 Constitution of the Philippines badly needs upgrades too. Some people couldn't even get the analogy of the Constitution and the OS of a computer. The OS of a computer can also help determine the quality of work. A PC will need to be replaced sooner or later. Why are some people still acting like the 1987 Constitution of the Philippines as an infallible religious text when it isn't? Article XVII states that it's open for amendments. Meaning, it's not even illegal to have a charter change! However, some people are too stuck in the past. It's all about being too sentimental, never mind that the 1987 Constitution of the Philippines, has weaknesses that need to be resolved ASAP. The consequences of not amending it have been disastrous. The late Benigno Simeon "Noynoy" C. Aquino III may have improved economics but it's not enough. One shouldn't rely too much on past successes, or risk a string of failures in the present. They need to think of what happened to Nokia. Nokia was just too stubborn and look what happened. Adobe relied on its past successes then created that highly expensive subscription model--something that created a controversy. The same can happen if the people rely too much on Noynoy's past success. The Philippines couldn't keep saying, "Well Noynoy succeeded last 2010-2016." Please, past successes don't make anyone or any institution invincible!

Conclusion

This would be the result of decades of Filipino First Policy mindset in schools. People pass down the same obsolete knowledge. LKY already called the protectionist policies of his day obsolete. Kishore Mahhubani's statements would put Hilario G. Davide Jr. to shame. What weneed is a radical reform in the system. If there's a radical reform in the system--we may expect these broken resolutions to be much less common! 

Popular posts from this blog

I'll Vote for Teodoro A. Casino for Senator, IF His Supporters Can Run a SUCCESSFUL #SahodItaasPresyoIbaba Business That Pays PHP 1,200.00 Minimum Wage

If there's anything I want to say--only economically illiterate people would vote for Teodoro Casiño's promise. The chances are that (1) it's all for a vote, or (2) he doesn't understand what he's doing. In my case, I assume that Casiño is simply saying it, all for a vote instead of the second option. Chances are that he's only saying it, for a vote. Because nobody in the right mind would push a PHP 1,200 minimum wage, given the condition of the job market! I would like to write this article because what he's pushing is inflationary . It's because no matter how much you look at it, #SahodItaasPresyoIbaba is plain bad accounting (read here ). How can you increase wages without increasing the prices of goods and services? Business & Plans   I wrote about opening #SahodItaasPresyoIbaba stores nationwide . Until now, nobody has ever bothered to do the challenge. Why haven't they opened a single successful #SahodItaasPresyoIbaba store? As one would lo...

Filipino Halal Resto Owners Can't Blame Arab Halal Resto Owners When Their Businesses Sink Into Quicksand

Food Craving Reviews Tomorrow is Hari Raya Puasa. Previously, I Googled "Mhat Am Kape" some time ago, only to discover that the place had been permanently closed . It was closed in 2020 before the Delta Variant came out in 2021. Their Facebook page is still on but the place is already closed . I tried eating there, calling the place mediocre, and when I talked with workers for Arabian halal resto owners, they mentioned that the place was definitely dirty. I could imagine how the Arab bosses would react to the lack of proper hygiene in the place.  I'd like to share a few photos I took from Mhat Am Kape's Facebook page. One needs to find out why the place closed down. I assume somebody sent the Cebu City Health office photos. The pastils (empanadas) on the floor (right) are an open invitation to pests . As a result, the establishment would be forced to close down. If these photos were taken sometime in July 2020 and the establishment closed in August 2020-- I assume Ce...

The Filipino First Policy Caused the Philippines to Succeed!

High School Philippine History Movement Yes, you read it right! I found a hidden gem that I should've read years ago! It's the book Nationalist Economics by the late Alejandro Lichauco, who is part of the magnificent IBON Foundation. It's a shame I refused to read it. I should've read Lichauco's book instead of the late Lee Kuan Yew's book From Third World to First . What a shame that I didn't look into the details that LKY was a dictator, that Flor Contemplacion was indeed innocent, and that Singapore is a state comparable to Nazi Germany. As I bought my copy of Nationalist Economics from the Trust Me Bro School of Economics--I'm now convinced that the Filipino First Policy caused us to succeed! LKY ruled Singapore for 31 years, meaning it's a frightening thing indeed! Six years is the magic number ot establish a benevolent rule!  Who should we all listen to? Should we listen to foreigners or should we listen to our fellow Filipino? We must think st...

Yes, the Philippines Can Self-Industrialize Because Filipinos Are the Most Powerful Race in the World (NO JOKE)

Yes, you got that right! This meme is a fact that Filipinos are the most powerful race in the world. That has been proven by the Trust Me Bro Factcheckers of the Philippines. It's the case of Filipino Exceptionalism. One can read on Facebook something like, "How many times do I have to tell you that the Philippines isn't Vietnam/Singapore/China/Taiwan/Japan, etc.?" Ever read that? If you haven't then you must be exceptionally stupid. That's why the Philippines should never learn from other countries, especially from Singapore. Why are you always listening to foreigners? Why listen to the advice of a stinky Indian when you can have the advice of the best constitutionalist in the world, Atty. Hilario G. Davide Jr.? You say that nations of the world go to Kishore Mabhubani in Singapore instead. Forget them because the Philippines is so unique that it can do everything on its own. It was proven by the greatest president that the Philippines always had, namely Carl...

Why I Stopped Investing in Stocks and Bonds for Cryptocurrency

This April 1, 2023, I made up my mind with a new investment strategy. Forget about what Warren Edward Buffett said to Jeff Bezos of Amazon. Instead, I decided to invest in the newest, hottest tool ever known as cryptocurrency . I would like to say that I already sold off and withdrew all my funds from all the financial companies I got invested in to put it all in cryptocurrency .  Why did I even believe in those investment schemes where I have to wait. Forget about waiting as it's just a game for losers. If I invested with Buffett's style of cost-averaging my money into an index for, let's say, 10 years, that would be plain boring. Instead, why not go for excitement with the world of cryptocurrency. I heard of how cryptocurrency can increase my PHP 100.00 to a huge amount of money in such a short time . Too good to be true you say? Well, that's just because people who are investing in stocks and bonds are just jealous of cryptocurrency investors, who are getting rich fa...

It's More Fun In The Philippines Thanks to the Filipino First Policy

I guess it can be called a day, right? This April 1, 2023 , I'm finally calling it quits with fighting for economic liberalization! Yes, that's right! All the advocacy for economic liberalization is just garbage. Why did I even spend so much time writing this blog only to find out that I've been duped? I hereby renounce everything I wrote here. I finally saw how brilliant the Filipino First Policy is. Man, what have I done? How much damage have I caused in advocating for economic liberalization?  The greatest president we ever had was... High School Philippine History Movement It's time to listen to the economic genius known as the late Carlos P. Garcia. Yes, he has to be one of the greatest presidents that ever existed.  I took this note from the Bohol Provincial Library and found this about CPG's Filipino First Policy ; CPG adopted the “Filipino First” Policy to promote greater Filipino participation in business, and to put the Filipinos in control of the economy...

Why I Think Many Filipinos Are Easily Fooled By Financial Scams

Dreamstime It's April Fool's Day and I think it might be a great opportunity to write about why many Filipinos get easily fooled by financial scams. I was doing some reviews of mistakes I made and mistakes others make. I can't get over losing a huge sum of money to a family friend . I can't get over how we also lost a lot of money to those who were supposedly close friends. It was also during my MBA days at the University of San Carlos-Main Campus when the scams happened and some MBA students were victimized. I was an MBA student at that time when I defied common sense by allowing a family friend to purchase in credit. I thought she would return the money after she paid for her first transaction. During the pandemic, I had gone on a blocking spree when I'm getting text messages offering to pay me a much higher pay (per day) when it was too good to be true. The Philippines will still need to develop its economy before it can be legitimate that Filipinos can get a min...

April 1 Humor: When Chicken Restaurants Create Some Funny April Fool's Ads

It's April Fool's Day, and what's April Fool's Day without some friendly humor? Here's some crazy stuff I found on Facebook: This one is way too ridiculous. I confess I'm a fan of Bok Korean Fried Chicken. However, I still prefer Bonenone Korean Chicken at A.S. Fortuna, Banilad, which still tastes better IMHO. My only problem with Bonenone is the difficulty in getting a parking space. However, Bok in IT Park can be a quick fix. So far, no restaurant should be stupid enough to give free chicken, for bringing a live chicken .  This Mang Inasal ad made me think, "Cool, there's mocha ice cream." However, the description from the Facebook page made it a clear joke. Looking at the caption, "Pwede ring hindi." meaning "Maybe not," with the laughing icon proves it's just a joke! This one would be totally a joke. Hopefully, Dairy Queen will offer mint chocolate after this joke. It's definitely not advisable to swallow toothpaste....

Remembering the Red Tape of Requiring People to Learn Hokkien Before Learning Mandarin

  It's no secret that I had bad grades in elementary and high school. There's always this distinction between huan-a (which may no longer be offensive, and refers to anybody of the Malay-Indo race ) and the lan-nang (our people). However, I prefer to call myself hua-lang (華人, Huárén) over lan-nang. Early last year, I wrote about why the old Sin Jiang textbooks were written the way they were . Barely anything can be understood by the non-Chinese speaker! It's funny but true! Honestly, we were even forbidden from romanizing, and we had to use Zhuyin Fuhao--something no longer applicable with Standard Chinese! Taiwan is still left using Zhuyin. Zhuyin may be best rendered as obsolete as the Alibata for standard writing or inputs. The Chinese schools in the Philippines all operated under a single standard. Learning Chinese was often characterized by the "死記硬背 sǐ jì yìng bèi" or "Memorize to the point of death" mentality (read here ). People had to learn Hokk...

Nobody Gets Rich Overspending Money to Impress Fools Who Don't Know How to Value Money

My Money Coach Happy April Fool's Day, right? How often have we been fooled by someone who claims to be rich by frequently having a thick wallet full of cash, having plenty of expensive brands such as having an iPhone and highly branded apparel, and living a highly luxurious lifestyle? Somebody may even fool you he or she is rich by simply saying it. I remembered how that kind of thinking (back when I was a child) caused me to envy others. I remembered how some of my classmates would brag they had this and that. For some, somebody was poor because the parents didn't buy for the child this or that. What's ignored is that sometimes the rich man's son doesn't have this cool gadget while the poor man's son may have it. This can lead to another foolish habit of spending money to impress others who may be burdened in debt themselves. It's a very common thing to spend money to impress others. It's because it's a very common thing to say that one is rich and...