Last Updated on April 13, 2017 by Marie Bautista
I heard that there may be a global recession in 2016 and it is going to get worse? What would be its effects on regular employees like me?
A great fear of worldwide recession is looming with all the problems in Europe, the United States and China. Just this month, China’s stock market mess and the continued downturn in oil price totaled our stock portfolios. (I could just cry
…)

Economists don’t seem to be pointing to better days. Given these uncertainties, what is going to happen to us, ordinary employees, and what can we do to make sure that we survive?
It is mind-boggling for those who have to manage huge wealth, but for regular working-class Filipinos, there is really not much we can do. Life has to go on, even with the increased cost of living. Jobs may be harder as companies and people cut back on their own expenses. What is important is to continually study how we can best preserve the purchasing power of the peso/
Under any economic condition, the same basic principles on managing our finances still hold true.
Have a regular source of income.
If you are employed, make sure you keep your job. This is not the time to be choosy, to complain or to ask fro more. Make an extra effort to show your best capabilities in anything that comes your way.
Actually, this should always be your attitude because it will help to establish a reputation for excellence and professionalism. If you can find extra income on the side, do so. But make sure your sidelines do not affect your efficiency at work.
Pay yourself.
In good times and in bad, remember to set aside at least 10% of your income. If you can manage 20%, that would be great! That is your salary to yourself.
Invest your “salary.”
Bank savings deposits hardly pay any interest and time deposits are also limited but pay a little better. If you have savings that you will not need for a few years, you can check out Bo Sanchez’ “Truly Rich Club” where I and millions of members get guidance on how to properly invest our savings.
Through the guidance of Bo Sanchez and a team of financial advisers whose goal is to “help good people become rich”, you can also personally grow your finances like I did.
And if you scroll down to the end of this post (I really hope you are reading this hehe), I am giving you a free inspirational e-book entitled “My Maids Invest in the Stock Market”.
Have an emergency fund equivalent to six months of income.
You may build this up over a period of three to five year.
Pay off loans that are not earning any income.
At the top of this list is credit card debt – those new winter boots won’t help you build up your emergency fund (and you can’t wear them in this tropical country!). You should never have incurred this in the first place.
Update your housing loan.
Having your own home saves you from spending on rental expense. If the bank will allow it and you have savings, increase your amortization to bring down your total loan.
Be stricter about your definition of “needs” versus “wants.”
If you accept that some of your needs are really wants, you might be surprised at how much more you are able to save. You can choose the basic necessities to stay alive. Every peso counts.
Consider selling unused goods.
You might not get the amount that you think they are worth today, but if you don’t use them anyway, they will deteriorate and will be worth even less in the future. At least if you convert them to cash now, you might be able to put together enough money to gain some income for the future.
Involve your whole family in your financial plan.
Even your children can help you if they know what you are doing and why it is necessary. Remember to be a good model by practicing what you preach.

Very Important!
Make sure that all your assets are income-earning. Non-earning assets must be disposed for cash, or used in your business and/or your personal life.
You’ve been good the whole week, but you are going shopping-berserk this weekend! How to deal.
And oh, about the free e-Book I told you, here it is!
- Learn how to create your personal retirement fund through the stock market .
- Learn to invest in the stock market wisely.
- Plus, read the 4 rules of making millions in the market.
Just click on the book! Go ahead, the book is free
.
