Poverty is really a simple problem. But because poverty is so ill-understood, so many Filipinos remain poor. The worst thing about this unique brand of poverty Filipinos suffer is that they blame their poverty on the government — or worse on a supernatural being (such as God or Satan).
In reality poverty is just the output of a simple equation — habitually spending more money than what you make. Most finance professionals understand this simple concept. They give it a fancy name — deficit spending. Keep spending at a deficit and you will end up living in the Payatas at some future point. Simple, right? Obviously, a lot of Filipinos managed their personal finances that way — which is why many of them now live and die in poverty.
So far we’ve talked about poverty without once mentioning the government. Or God. Or Satan. We did not mention Ninoy the “hero” or Digong the “Evil One”. We only built a framework for understanding poverty just on a couple of simple equations.
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Under that light, it is easy to see now how Filipinos can simply stop being poor. All they have to do is spend less than what they make. When one spends less than what they make over a long period, they accumulate savings. And, when invested wisely, savings yield wealth.
It’s really that simple. Filipinos should consider this simple solution to their poverty. It really does work! ?
Webmaster of Get Real Philippines