Buy less – pay less

“If people have the money they will buy what they want to buy.”

That’s what a UK automotive executive told me with regards to the higher taxes that the Duterte administration will be enforcing beginning 2018. But what about people who don’t have the money or regular people with limited incomes and no disposable income? How do we survive or adjust to the impact of tax reform on our daily lives? 

Given that the year is nearly finished and we will all soon be making our usual New Year’s resolutions, I humbly submit that instead of just resolutions, we should all call for a family “business meeting,” office conference, even village or town hall meetings with one end in sight: to come up with a plan and strategy for 2018 where we can cut down on unnecessary expenses without sacrificing on quality of life. The bulk of the tax to be earned by government will come out of sales and consumption and most of that will be paid by or passed on to all Filipinos.

It is unavoidable but by determining what we spend our money on and how much we consume, we in turn gain some control on how much of the government’s tax collection comes out of our wallets and that’s what I meant by: Buy less – pay less. I know it’s risky to combine a serious task with a frivolous tradition such as “New Year’s Resolutions” but 2018 may turn out to be the year where our resolve and commitment to the task will determine if we are poorer or richer by 2019. Even with the list there are no guarantees, you must be prepared to have a mind shift, change your mental “tastes” and exert effort to achieve the goal.

The first thing is to make a list and checking it twice on where you spend too much or unnecessarily. Then you have to research or ask around for alternatives. But remember just finding more affordable does not equate to smart spending if you end up consuming more. The goal is to buy smart and use less.

I recently met up with a resort developer and their biggest headache after completing the facilities turns out to be the cost of their electric bill. It turns out that their electric bill is so big that a fellow developer advised them to simply put up their own power plant. That seemed to be a good idea until the new tax reform measures stabbed their plans in the back because fuel will now be much more expensive. I suggested going with solar and windmills and switching everything to LED and breaking their consumption into blocks for micro management and monitoring purpose.

Families on the other hand can start by finding out what drives up their electricity bills. Impatient as we all maybe there is a lot of truth to the power saving tips that Meralco regularly broadcasts and the reason they encourage consumers to save up is so that there would be more reserves for more people to use. On a personal note, we figured out that our electricity bill is high because of a west-facing window, so we put in trellises on each floor, grew millionaires’ vines and reduced the radiant heat and increased our privacy. For the summer of 2018 we will install timers that automatically switch aircons off after six hours and turn on fans. We will also be looking for solar powered appliances.

What are your other high consumption areas? You might say fuel for cars, but you won’t be sure until you start listing things down or checking your receipts for 2017. You should also check how much you spend on accessories and maintenance some of which you could actually D.I.Y or Do It yourself. If you’ll soon be needing tires, find out if Goodyear has their special “Buy 3 get 1 free.” It might surprise you to know that many motoring journalists buy used vehicles. As one guy put it: Why take the hit of owning brand new when you can get it a year later for P100,000 less?”

Many people are surprised to find out that groceries are at the top of the list because prices have crept up and the only time people start wondering is when their bills break the usual barrier. As far as groceries go, I often wonder why ordinary consumers continue to buy imported or highly advertised products while chefs and restaurant owners actually use “the lesser brands”? If you’re in the habit of asking questions like I am, it might shock you that certain hotels and popular restaurants still buy materials and supplies at Farmer’s Market, in Quiapo and Divisoria.

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Be a Coupon Queen or the King of Bargains.

There was a time when I had no patience for people who would waste time hunting for bargains or going to a “sale,” but experience and wisdom have shown me that there are some really good bargains to be had at the right places at the right time.  Or keep tabs on specialized brands that often hold 40 to 70 percent discount sales after every season. Stop being brand conscious and be more quality and comfort conscious, and most of all don’t be too conscious about people seeing you at the surplus store or overruns place. The last time we went to Camp John Hay, I went home with more clothes than I packed on the way up. The best thing about it was the clothes were half the price.

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Finally, give the spa life a rest. We all love to be pampered but have you ever tried to make an accounting of how often you go to the salon or spa and how much money you spend annually? Better figure it out because the Tax Man will be getting more of that in 2018!

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