How much money am I losing for nothing?
Well, that’s the question I have asked myself today upon reading the local newspaper. Please do not think that I am just wasting my money for nothing. That I am spending left and right and so now, I am questioning my spending activities.
NOPE! The answer is a definite No. As a matter of fact, both you and me are losing money for nothing. And that is all because of the bastard called “Inflation.”
There is no need for me to define what inflation means but I can assure you, it is a phenomenon that eats something out of your earnings and it does nothing but just eat part of your earnings for nothing. LOL
Going back to what I have JUST read in the paper, The Arab News reported that inflation for May is 10.4 percent, A BIT LOWER compared to 10.5 % last April this year, the highest in 30 years. “The rental index which includes rents, fuel and water soared 18.5% while food and beverage costs rose by 11.51 with other goods and services increased by 11.9%.” (Data from the Economy and Planning Ministry)
On the other end of the globe where most of my earnings go, the Philippines, the inflation rate is still running at a nine year high of 9.6 percent in May.
Using my simple mathematics, the total inflation I have to deal with is 10% (10.4 % + 9.6 %/2). This could be interpreted as:
For every USD100.00 I earned, the actual value now is only USD90.00 or 10 percent less of its actual value.
For every goods or services worth USD100.00 before, it will cost me USD110.00 now or 10 percent more (10.4 percent for me here and 9.6 percent for my family back home).
Inflation also extends to whatever investment I may have. Meaning, for every cents I earned plus the principal amount I invested, the value of which now is effectively reduced by 10 percent as well.
Added to inflation is the fake appreciation of the Peso against the US dollar, which in reality is useless (as far as I am concerned) because the purchasing power of the Peso has not increased. Perhaps this is the reason why there was a huge increase in remittances by fellow OFW’s and I could imagine how hard an OFW scratches his/her head every time the wife, the children or the parent ask for additional money to cope with rising prices.
How to beat inflation to avoid losing money for nothing is the question that I will be asking myself in the coming days.
For now the biggest question of all is “Do I have the brain to do that?” LOL