Its here and it is no longer a pinch but a sting. Last Wednesday the budget cuts in the public sector was announced. From the look of things middle class earners are the worst hit. A 7.5% reduction in my wife's salary is now in effect as of Wednesday. Talks with labor unions and even work strikes was carried out but to no avail. It simply delayed the inevitable. Next year will be a drastic change in our lifestyle as we try to make ends meet. Even if both me and my wife are working there will be no more extra to be saved. Truly gone are the happy days.
In time like these one wonders if there is something to look forward to for the next year. It makes one think if it is still practical to hold on to our mortgages and car loans. As our purchasing power weakens and the prices of goods soars next year will be a biggest test of our resilience. As Filipinos we are use to price hikes and living on our means. But I do admit that upon coming to another country where credit cards and bank loans was so easy, I slowly developed a bad habit of splurging on things that are not necessities. We bought a lot of gadgets, a new car, a mortgage that when you think about it, are bad financial choices given of the current situation.
Next year belt tightening will commence and I will awaken the miser within me. Maybe this budget cuts is somehow a lesson for me to stop living beyond my means and don't treat credit cards like a bottomless well.
1 comment:
While the budget didn't change income taxes or motor tax rates as per usual, there was still a lot of cuts in disposable income. You mention cutting back on spend, and I think this is what most people will do, thought it's what they least want.
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