12 Little Things — Rule 12

This is the thirteenth and final post in my series, written for practical people, both Filipino and foreign who care about the country of the Philippines and would like to do something, within their own means and power, to make it a better place.

12 little things logoToday’s excerpt is quite appropriate as it publishes as we Americans head into one of our very special times of the year, the July 4th holiday which celebrates the birthday of our country, specifically the signing and public reading or our Declaration of Independence.  The USA didn’t actually become a nation on that day, we had to fight a war against one of the greatest powers in the world to make the words of the declaration mean something.  Many things have come to pass since that momentous day in 1776 when 13 little dirt poor, unorganized and often isolated colonies declared themselves independent and launched immediately into a war to set themselves free from a nation that was not dictatorial or violent, but an oppressive colonial dictator none the less.

The Philippines has a history with many parallels to the US.  In fact, for many years the Philippines celebrated a shared Independence Day along with the US, because the actual date the Philippines stood up as a sovereign nation recognized by the the world community is 4 July, 1946, (see Treaty of Manila)


Be a good parent. Teach your kids to follow the law and love our country.


But the Treaty of Manila was no more the birthday of Philippine Independence than the Treaty of Paris, 3 September, 1783 is the birthday of the USA, 7 long years after the Declaration of Independence.  It took the Philippines slightly longer.

The Philippine Declaration of Independence occurred on June 12, 1898 in Cavite el Viejo (now Kawit), Cavite, Philippines. With the public reading of the Act of the Declaration of Independence, Filipino revolutionary forces under General Emilio Aguinaldo proclaimed the sovereignty and independence of the Philippine Islands from the colonial rule of Spain.

Of course it really wasn’t the Spanish the Philippines need to declare independence from the US having convincingly “kicked their butt” in the Battle of Manila Bay the preceding month.  Remember “You may fire when you are ready, Gridley?”

But the fledgling republic did manage to get themselves into a shooting war with one of the greatest powers on earth, the USA.  In the US the Philippine-American War is often called the “War of Philippine Insurrection”.  The war is officially said to have ended on July 4, 1902 (there’s that date again) but shooting continued until at least 1913 when an uneasy truce with America came into actual being, lasting in on for or another all the way to 1946. 

subic_turnover So again, the parallels between the USA and the Philippines coming into nationhood have a lot of similarities, but it took the Philippines a little long from declaration to actual sovereign nation status ,,, about 44 years.

As an American with a military background I am often disappointed when I see fellow Americans at public events where our national anthem is played, or especially at a parade where virtually no one renders proper honors to our national ensign (commonly called a flag).  But that disappointment is nothing compared with what I see of Filipinos when the Philippine colors are brought into a room or especially when the Lupang Hinirang is played.  No wonder the author of 12 Little Things added this rule.

If you want respect, you must show respect.  Especially to your own nation and it’s national symbols of sovereignty.  Parents, you can talk about poverty, lack of education, government corruption. a dearth of opportunity and all those other negative things, but it costs exactly zero pesos and very little time to teach you children (by example) to render the respect due your own country … and others if their nation anthem is played.  It’s cheap, it’s easy, and it is important, no one is going to respect your country if you yourself do not.

In case you don’t know the rules, Filipino or foreigner, when any country’s national anthem is played, a respectful person rises, assumes the position of attention (which means they stop talking, chewing, spitting or texting, by the way), remove their headgear, faces the music or the ensign of the country and remains standing respectfully until the last note.  Citizens of the country being honored should render the hand salute if in uniform, if in civilian clothes they should remove their headgear and hold it over their heart.  If no headgear is worn, they salute by placing the right hand over the heart.  And yes, if you are a dual citizen you absolutely should render the honors to both country’s anthems being played.  It costs nothing and brands you as person to be respected, because you render respect, and it’s worth doing even if those around you don’t bother to, … or so Dave opines.

This will conclude my comments on the worthwhile book, 12 Little Tings.  I recommend it highly.  If you have trouble getting your own copy, contact me and I will help.

Popularity: 2% [?]

Start a Business in the Philippines

This is one of those sorts of posts that I really don’t care much about writing.  This site is essentially a labor of love.  I make a non-trivial income from a number of online ventures, but PhilFAQS certainly isn’t much of an earner.  I tell myself often I should only write about the things that interest me, and quite frankly, running a business … I’m talking about a ‘dirt world’ or ‘brick and mortar’ business inn this post, is not something that interests me.  My wife and I ‘put up’ and made a financial success of a ‘dirt world’ business back in the USA … it’s not something I don’t know how to do.  When the time came for us to make the move to the Philippines one of the options we could have chosen was to keep our business alive and manage from the Philippines.  The businesses essentially was retail sales, with no stock (I sold equipment and ordered from the manufacturer for delivery to the client), so business-wise it would have been relatively simple to build a team of commissioned sales agents to cold call, demonstrate the product, get the orders signed, etc.

Even though our business was about as conventional as can be, we still did a majority of it online … placing orders, paying bills, banking, tax payments, submitting bids, collecting payments … even most state and local sales taxes and administriva like that can be handled online.  But I didn’t want to run a conventional business any longer.

Regardless of what my own interests are, though, if this site is to have any value at all, I need to be responsive to reader’s needs, and I get a tremendous number of inquires and even pleas for help that involve starting a business in the Philippines.

Some of these ‘business in the Philippines’ queries come from folks who want to move to the Philippines and envision a business her in the Philippines as a way to make a living.

Others write because they have relatives or friends here in the Philippines whom they want to help get a start in life or move up in income by starting and running a business here.  So, I soldier on … what the readers want, I give ;-)

Actually I guess I just wrote my first informational paragraphs already, when i described the alternative my wife and I chose not to avail of … operating a business that makes its sales in the US while the owner operates the business from the Philippines.  There is absolutely no reason this can’t be done.  And it is certainly not limited by citizenship, either.  Smal Biz logo Unlike the rules of business incorporation here in the Philippines, there is no law in the US which requires businesses to be owned by US citizens.  A Filipino can ‘put up’ a corporation, especially an LLC (Limited Liability Corporation), the form of business most commonly recommended for many small businesses, in a number of states in the US in a matter of minutes.

No address in the US?  Most business formation services (there are dozens or even hundreds of them … this is one I have sued in the past and highly recommend) offer the service of being the business’s registered agent anyway (some states even require this), so for a few hundred bucks anyone can form a business in the US, in 15 or 20 minutes … if you read slow.

wnrepinots home pageTaxes?  If you are a US citizen, of course you are required to pay them (or not, read the rules on foreign earned income and seek professional advice there, but your tax bite might be less than you think).  How would a Filipino deal with US taxes?  Just apply with the US IRS for a TIN and presto, you’re legal.

What business would you do?  Ah, well don’t ask me that, the choices are virtually unlimited.  I want to keep this post down to a thousand words or so, but just take away the message that running a ‘real’ business from overseas is not at all impossible in today’s day and age, Filipino or foreigner.

Now, suppose you say, “Oh NO, Dave, I can only consider a business here in the Philippines”>  OK, fine. Did you read my post last week about the Philippine specialist franchise consultant and broker (who also comes highly recommended, by the way, he’s no scam artist or ‘paper hanger’).  How many of you read that?  Howe many went and enquired about a franchise that interested them?  How many left a comment about the article?  See why I feel I am often living in a vacuum?  People ask for information, I provide, and apparently they wanted it in some language other than English, because no one seems to connect.

Philippine business requirementsOn the chance anyone is reading, here’s another source I have kept up with for years. EntrePinoys ATBP. (ATBP is a common Filipino acronym for At Iba Pa “and others”, typically used where the Latin etc. would be used.  The owner of the site, Leo, (who is a Filipino) has been diligently documenting Philippine business and investment opportunities for years … tirelessly I might ad.  There are thousand and thousands of opportunities listed … many with facts, figures and step by step instructions.  Spend an afternoon with Leo and then come back and tell me there is no opportunity in the Philippines … you can not, with a straight face anyway.

If you do decide that staring a business here in the Philippines is the thing for you, or your relative … here’s an excellent source (just select the country you want to learn about)that will help you through the myriad of regulations, permits and other “mother may I’s” you will need to wade through.  You won’t start a business in 15 minutes in the Philippines, but still that doesn’t mean it may not be worth it.

Popularity: 34% [?]

How Much Is A College Degree In The Philippines?

There’s a question I have been asked regarding living here in the Philippines a time or two in the past.  The shortest answer is, a heck of a lot less than an equivalent school in the US.  But that’s not a very specific answer, is it?  Also, you can always get into a veritably endless argument about what an ‘equivalent’ school is, are Philippine colleges and universities ‘up to snuff’, is a Philippine degree any good anywhere else … the list goes on.

Well I can tell you this.  There is no Stanford or Harvard in the Philippines.  There are, however, plenty of worthwhile schools and many are enough ‘up to snuff’ to sit the rest of the world.

Speaking of Harvard, for example, a great many top level Filipino lawyers have their law degree from the University of the Philippines, Ateneo Law and other ‘name brand’ schools here and have gone on to graduate work at Harvard without missing a beat academically.  So, as with any endeavor, pick carefully.

But many just wonder about getting an undergrad degree at the lowest reasonable cost, and very important in today’s world, choosing a field of study that is relevant and might live on into the future.  I mean how many folks are going to colleges with business programs today that teach 2007 or before methods of how to get rich on Wall Street investing in sub-prime mortgages and other banal ‘get rich without producing anything’ crap like that?

Here’s an interesting piece that might open a few eyes.  Not only is the coursework about agriculture (building for the future and literally helping to solve world hunger and unemployment, but the cost is just about as reasonable as it can be.  Zero.  Walang.  Free, Gratis. 

They say there are no opportunities for young people in the Philippines.  But they say wrongly, or so Dave opines:

How to go to college for free

By Neal Cruz Philippine Daily Inquirer First Posted 03:08:00 06/10/2009

So you can’t afford to go to college? Take a course in agriculture for free. There is a P100-million scholarship fund in the budget for students who will pursue a course in agriculture. The scholarship is good for the four years of the course, provided you don’t flunk any of your subjects.

This was revealed by Sen. Loren Legarda at the Kapihan sa Manila last Monday….

Read the rest of Mr. Cruz’s Go To School In the Philippines For Free article.

Popularity: 13% [?]

Another Philippine Pony Found — True Life Living In The Philippines

Just recently I answered a comment on one of my articles on Bob’s Philippine Web Magazine in what many may feel is a pretty contrition manner.  A lady wrote to tell me that the reason she wasn’t moving to the Philippines to live was because there was no opportunity here … especially for young teen children who will, after all, becoming self-supporting adults in just a very few years.

My view could pretty much be summed up in one phrase “wrong as rain”.

You may also recall I put together a number of articles here in past months based on an old farmer’s joke made popular by President Harry Truman, about there being a “pony” (which I am using as a metaphor for an “Opportunity” under the a huge pile of manure and stable residue … which serve to represent the continual nay saying and the chorus of “it can’t be done” that grates on my nerves each and every day, living here in the Philippines.

Here’s a nice up to date example why I believe the Philippines is indeed a land of opportunity:

US couple retires in Corregidor

By Ross Harper-Alonso, Philippine Daily Inquirer, First Posted 02:36:00 06/14/2009

MANILA, Philippines—While many dream of retiring into a private island in the Philippines with long stretches of deserted fine, white sand beaches or enjoying a luxury resort lifestyle still close to where the action is, an American couple has chosen to do the unusual.

Steve Kwiecinski, 57, a retired computer programmer and his wife, Marcia, 56, a retired physical therapist assistant, left Michigan in 2008 to start a new life on Corregidor, the island fortress that has become a national shrine as a symbol of the determined resistance of its Filipino and American defenders against the invading Japanese in World War II. You can read the rest of Steve and Marcia’s retiring in the Philippines story here.

OK, I can here you saying.  This is false adverting.  You started this article talking about opportunities for the young and then you give us the story of a couple, advanced in years, living a crazy lifestyle in an obscure place, and obviously living off a retirement pension.  You see opportunity there?

Valor Tours logo I surely do.  What the article didn’t point out is Steve’s “part time job” or more accurately, labor of love.  Steve guides and escorts tours for Valor Tours, Ltd., a company who specializes in conducting tours all over the world focusing on important World War II battle sites.  What?  You mean a US company can make a profitable business out of touring people to the Philippines and even more out of the way places like Tarawa and Guadalcanal?  And they have been making money at it for years?

Steve has been to the Philippines before, and decided he liked it here.  If he listened to all the ‘wise men’ we hear chorusing in the background, he would never pull up stakes and live in a one bedroom cottage on an isolated island in the Philippines. 

  • What if the people stop coming on tours?
  • What if the government says, “hey get out of our house”?
  • What if the money the Kwiecinski’s invested to get their SRRV doesn’t yield as much money as it did back in a US bank (oh, wait a minute, not much chance of that happening is there *sigh*, on to the next point, Dave)
  • What if either of them gets sick and has to be hospitalized
  • What if, what if, what if?

This is the biggest “what if” in Steve and Marcia’s life (and in mine as well) is, “What If” they had just sat around and waited until there was no risk.  Waited until Steve was 65 so he would have his Social Security for extra income, waited until they had more money for a better house, I’m sure many of you can think of other reasons why the move Steve and Marcia made might seem rash or risky. 


View Larger Map

But on the opposing side of the decision matrix you might also ask, what if Steve dies next year?  I certainly wish him a long and healthy life, but 58 or 59 year olds drop dead every day?  So do people in their 30’s and 40’s.  Steve and Marcia already own, I mean truly own … can’t be taken from them … memories and experiences that most of us will never have … all because Steve made an off the wall request to live his dream and the request was granted.

Opportunity?  It’s all around us … how long will you wait?

Popularity: 6% [?]

Philippine Business Resources

As many know, I often get queries from readers about starting a business in the Philippines for themselves, or helping a family member put together a business and get it off the ground here.

In general, this is a difficult task for a foreigner.  Starting a business anywhere is a significant challenge.  In the Philippines (rated one of the most difficult countries on earth for startups) it is even more daunting.  If the parties involved are not already experienced in starting and running a business the task is even more difficult.

franchise Yet businesses in the Philippines absolutely can succeed.  Some do very well.  And running one’s own business is orders of magnitude better than  trying to find a J.O.B. (Just Over Broke) here in the Philippines for a foreigner.

Many are also interested in the aspect that a business that succeeds and has employees can provide for many members of a family who need work and income.  or even folks in a local community.  Not long ago I read a nice article about a lady who had started a successful restaurant in Manila and was branching out into other locations,  her wait staff and other service employees were almost all ‘imported’ from her tiny town back in her home province.

In addition to the obvious fact she was helping folks with little opportunity find honest work, she found this was a tremendous business asset.  The single employees lived together in company sponsored dormitories and she had the opportunity to train the staff from day one exactly to the methods and standards she wanted  followed.  And as you might imagine, employee loyalty and morale was very high.

So, if you do decide you want to start a business … or, if you already have a business and want to expand it, like the lady I mentioned above … one of the strategies you should look into is franchising.

Like all business strategies, franchising has its own set of pros and cons, but while I have seen many a foreigner owned/managed independent restaurant struggling or even shuttered after 6 months of floundering, have you ever visited the Philippines and seen, for example, a Jollibee without a line at the counter?

I just recently became aware of a good source for franchising information here in the Philippines.  I have good reason to believe the owner and his staff are highly reputable, but as with all things, caveat emptor.  I thought I would pass it along as a useful Philippines business resource … is there interest in more pointers like this one?

Popularity: 3% [?]

12 Little Things — Rule 11

This is the twelfth in this ongoing series for practical people, both Filipino and foreign who care about the country of the Philippines and would like to do something, within their own means and power, to make it a better place.

Today’s excerpt is one that ought to be a lot more popular than some of the ones involving taxes and traffic laws.  It is something every reader of this blog can do, and start today.  If you don’t think so, just read on.  I don’t necessarily agree with the word the author used ‘Adopt’, because it has specific legal and moral implications that can be particularly 12 little things logohard to do, especially for those of limited means, or single, and particularly in the Philippines.  For al the terribly neglected and destitute children here in the Philippines, the government of the Philippines has made it excruciatingly hard to adopt children … and if you are a US citizen and want to adopt, you’ll find the US State Department has made it very close to impossible to adopt a child here and bring him or her to the US as a US citizen.  You can sign up, get ‘vetted’, fly to China and adopt a child legally in as little as a few months, and that child can go right back to the US with you on the same pane … piece of cake … but don’t think those rules will apply to a child born in the Philippines.  Why this is, I have no idea, and I won’t go into any further … but let’s just say I want to use “adopt” here in the sense I feel the book’s author wanted it used.


Adopt a scholar or a poor child


Not only is it darn hard to adopt a child here in the Philippines, it’s darn hard to even get them in school.  Here we have a country where a pack of cigarettes costs 50 to 70 cents US, or a liter bottle of 80m proof gin costs less than two dollars, but it costs the Peso equivalent of $12 or $14 to get a child a birth certificate … minimum.  It can cost a lot more, too, because if the child never had a birth certificate to begin with, at the least it will mean a trip back to their birthplace to try to get documentation from church records or other secondary sources.  Small wonder there are a lot of kids |on the street”, day and night, skinny as a rail, ill-clothed, ill-housed and of course, no birth certificate.

Why worry about a birth certificate you are thinking?  Simple.  Schools won’t admit students with out one.  Perfect excuse for not providing for a child and sitting around on  a government salary while waiting for a government retirement … without having to work too hard.  So one thing you can do is get a child you know a birth certificate.  The family may tell you they would be happier with money … and of course they [probably would be, short term … but without a birth certificate the children go no where … not to school and not into any sort of organized employment then they are older.  Don’t kid yourself and think this is easy, or that people will always follow through … but I’d rather spend a few hundred pesos trying to get something substantive for the child instead of just handing out money in dribs and drabs.

Another thing which works better than handout, to my way of thinking, is ‘made work’.  We have a yard boy … let’s call him Joe.  He started with us years ago when he was perhaps 8 pr 9 years old, working with his dad who was a regular yard man for many folks in our neighborhood.

Little by little I noticed days when Joe would show up on his own, his dad nowhere in sight.  One day Joe came to the gate asking for his weekly money early, because his dad was sick and he needed to buy  medicine.  It turns out that dad is seriously sick (I don’t know the particulars) and Joe, who must now be all of age 10 or 11, stays here  in town alone (his mother is out of the picture, again I know not why) and tries to keep food in his mouth and bring money to his dad who is apparently living with relatives a few towns away. 

Do I give Joe money, except for working for us?  No.  hardhearted you may think, but a cold hard fact about the Philippines is, there are millions and millions of Joe’s …  the Philippines can drown you with financial needs and break even a strong man’s heart if you start trying to rescue each one.

What we do for Joe, when he comes by with ‘special needs’, is send him to my wife’s mother’s house around the corner and let him trim bushes, weed flowers and sweep up outside … for which we pay him.  Sounds harsh maybe, but I think it’s better than just training the kid to beg or starve, and he still gets money to buy medicine and visit his dad, and mother loves the little luxury of having her yard made spick and span too.

Now if you are lucky enough to know children a little more fortunate who are in school, it’s easy to help even in small ways.  You can send a small allowance, you can offer to pay semester tuition expense or you can even do as my wife and I have done … take in a bright niece who just graduated high school and send her to college … paying the tuition, books and a small weekly allowance while she lives with us so we know that she’s going to school, making progress and has a place to come home to every night … not the often abysmal ‘bed spacer’ living accommodations most college students are lucky to live with.

Whatever you do, do something.  There is no better investment than helping a child, and unlike buying a TV set or a new SUV or upgrading your iPhone, you know your money has a chance to live far, far into the future.  Alex Lacson is really on target with this recommendation, for sure.

Popularity: unranked [?]

12 Little Things — Rule 10

This is the eleventh in this ongoing series for practical people, both Filipino and foreign who care about the country of the Philippines and would like to do something, within their own means and power, to make it a better place.

Today’s excerpt is one that ought to get a lot of attention especially from my foreign readers.  Especially those of us from the US, where being anti-tax is more than a hobby, it’s much more like a religion.  Witness a few months ago when the US was a12 Little Things logoblaze with so-called “Tea Parties”, protesting what are perceived to be very high taxes.  In actuality there are only two  developed countries with lower personal tax rates than the US (Iceland and Ireland, and both of those countries are  currently bankrupt or close to it) so maybe we in the US don’t have it that bad.  Be that as it may, in the Philippines personal taxes are certainly higher … so why should anyone be interested in paying them voluntarily? 


Pay Your Taxes


Here’s one possible reason.  Ask virtually anyone from any country to describe the Philippines in economic terms and the chances are huge the within the first few words are going to be phrases like ‘poor’, “Third-world”, ‘developing’, and so on.  Speak to any Philippine politician or teacher or newspaperman or Jeepney driver about why the Philippines has so many poor people, why this sad thing or that horrible condition is allowed to exist and you are almost 1,000% percent certain to get money as the primary reason that the country isn’t doing better.

But the Philippines is not intrinsically poor at all.  It’s not saddled with trying to feed a population from a barren desert like the Sudan, or spending 50% or more of the people’s energy on just staying warm and scratching for a living off frozen tundra like some nomadic tribe in Siberia … the Philippines is a semi-tropic environment with rich soil, abundant rainfall, a location central to heavily populated areas of Asia, a national infrastructure, developed agriculture, able to beat out powerhouse nations like India in IT and business technology … I can go on, but you get the drift.  The Philippines actually has a lot going for itself economically.

Then why is the country so chronically strapped for cash?  Well I would submit there are a lot of reasons, but one primary one that is as obvious as the node on everyone’s face:  The country does not have the will to collect the legal and constitutionally authorized taxes.  It is simply astounding to me, as a foreigner “looking in from the outside” so to speak, how pervasive this problem really is.

The Bureau of Internal Revenue, in charge of collecting corporate and individual income taxes seems to operate about the same as a beggar seeking handouts … only they are no where near as persistent.  Only a few years ago, the present administration instituted a ‘ground breaking’ BIR program called RATE (Run After Tax Evaders).  The program, to the extent it has been applied has been a whopping success, actually going after tax evaders and demanding payment.  But by their own figures the program has only touched less than 2% of the tax evaders already know by the government.  Billions in unpaid taxes, millions of people who need a job and a constitutional mandate to collect what is legally owed to the country … if this isn’t an opportunity just going begging, I have never seen one.

And property taxes.  The fundamental building block that supports the programs of every province and municipality.  It borders on insanity in my view.  Taxes go unpaid on commercial and residential property for years on end and nothing is done about it.  The provincial coffers are empty, hundreds of thousands of property owners scoff at the law, and virtually no one seems to care.  Talk about culture shock.  In the US, if you don’t pay the taxes on your property holding in a year or so, max, the property will be sold for back taxes at public auction.  If you do settle up the taxes at the last minute before tax sale, you will pay a healthy penalty in late fees and interest.  And why not, to my way of thinking.  You had a just debt and you failed to satisfy it … everyone should be acco8untable for their legal obligations.

In the Philippines, many people wait five or more years before paying the taxes on their homes and the the taxing authority, for reasons I can not fathom, sends them out a ‘final notice’ which a hefty discount offer, almost 20% in some cases, as a reward for shirking their duties for five years or more. 

Folks, this is no way to run a railroad … or a nation.

In my province, Bulacan, the previous governor who left office a few years back was known throughout the Philippines.  Unique among the other 81 or so provincial governors she took a bold, innovative and virtually unheard of step.  Can you guess what it was? 

She instructed the provincial tax collection office that they were to be held accountable for unpaid property taxes and instructed the head of the department that he was to collect taxes, report to her on the progress regularly and if collections fell off and missed their target, he world be fired. 

It was news about as earth shattering to the rest of the country as reports of a new volcano erupting.  Teams of provincial employees from all over the Philippines made trips to Bulacan to observe how the simple business of tax collection could be done.  Some went home and improved some procedures in their own province, the majority though, left shaking their heads, commenting that it was all very well for Bulacan to brag about their success because, after all, they were a rich province, not poor like our little province.

The simple logic that Bulacan had money to pay their bills and even money to computerize property tax records simply  because they had the gumption to tap the source of money they already had access to was … and still is … lost on most people. 

Provinces (and nations) are not poor or rich by some luck of the draw like a poker game, they are poor or rich based on how they exercise their national responsibilities and how they make use of the assets they already have.

Paying your taxes will make the Philippines a better place for all, I guarantee it.

Popularity: 5% [?]

Philippine Living — Where Did The Money Go?

As much as so many of us talk about money, cost of living, investments and other money-related matters here in the Philippines or back home “day dreaming” about the Philippines, it’s amazing to me just how few of us keep very good track of our money.

I had this driven home to me several times when I wrote articles here on PhilFAQS about daily costs of living here in the Philippines and realized I really didn’t know where some fraction of my money really had disappeared to.

And of course, come tax time … especially when the statements from some of my Internet income roll in … Wow! do I have to pay tax on all of that or can’t I find some legal expanses that will offset at least part of it?

There are a lot of solutions to this problem, from careful work with a pen and paper, logging each expense to software that works on your computer to a couple very slick online solutions.

Paper and Pencil:

dome record book

For many of us, you just can’t beat the old pen and pencil when it comes to keeping track of your finances.  here’s my recommendation.  Dome Publishing has been in this business for close to 50 years, they know how to provide good value, they know which records need to be kept, and they are inexpensive.  This book, a personal favorite, is under $5.00 brand new … surely your personal budget is worth that much organization.

 The most experienced in the business

 

On Your Own Computer:

plcash Here’s apiece of software I have come to find invaluable.  It sits right on your own personal computer (no worries about Internet security), runs on PC’s, Linux and Macintoshes and comes for the whopping price of Zero dollars and zero cents.  There is a cost, though, the author requires that as a condition to using his software, you have to care.  Sounds pretty reasonable to me.  You might also spend a little time on the author (Paul Lutus’) site.  He can clue you in on interesting questions such as ‘Why is the sky dark at night?’ (think you know? … I’ll bet you don’t).  Anyway the software is light, fast, efficient and totally free, so one simple download and there will no longer be a reason to ‘not know’ where your money went.

Online:

outright Here are two slick, web 2.0 style applications you can use totally free.  Both will  minttrack your bank balances, keep personal and small business-related records and in general bring you into the 21st century with a smile on your face.  Free to try and free to use.  Outright.com  And one a little more oriented to personal use only. Mint

Popularity: 7% [?]

Philippine Family Matters

Some readers may remember the blockbuster HBO series, The Sopranos.  Many know I a a certified (certifiable?) Sopranos fan, maybe because so much of the show was filmed a few block from one of my boyhood home and I grew up knowing a lot of characters who could have been hired, as is, directly into a Sopranos episode. 

Gia and Dave Starting School Anyway, one of the taglines used in advertising the series was “Family, redefined”.  Welcome to the Philippines, my friends.  Whenever the subject of culture shock and differences between living here and back in the USA comers up, I find that family is one of the biggest difference to me.

In many ways I had a pretty normal US-style childhood … married parents who lived together, a number of aunts, uncles ,cousins, grandparents and siblings … nothing out of the ordinary.  After I got married the first time my family of course doubled … my wife’s grandmother, father and mother, a couple aunts and uncles, cousins and a brother-in-law … so, in many ways, when I type these words, I wonder how I am going to come up with the right words to make the differences between there and here come alive. The difference between my relationship with my ex-wife’s family and my current (and LAST) wife’s family is night and day.

One thing I learned when I was working in the classroom is, every lesson should begin with an attention step.  So here goes … The Philippines Is Family Redefined … in a big way.  In my personal view this can be one of the best, or the worst changes likely in your life if you come to live here in the Philippines.

Here’s a little pre-marital tip for those of you with a romantic interest here in the Philippines, thinking of ‘tying the knot’.  You aren’t just marrying the guy or gal, you are marrying into his or her family.  I know of a lot of Americans who are sort of in denial over this or who sometimes just brusquely sate, “Oh no, that means nothing to me, I won’t be getting involved with her family”.  Well, again in my view, of course, you have no idea what you are talking about, my friend.  You are going to be involved with her family, perhaps more than you know, so it might be smart to lose the ‘it don’t matter to me’ attitude and figure out your own way to interact and make the experience more of a delight rather than a disaster.

My own solution (which has been made very easy for me, because of who my Filipino family is and how they have made it so easy for me) is to relax, go with the flow, and enjoy the gift of a whole new family.  Indeed, on those occasions when the thought of leaving and going back to the USA comes to my mind … and it does you know, it will be a frequent visitor to your brain too, trust me) one of the positive factors that keeps me right here where I am, planning for a future here in the Philippines, is family.  If I pulled up stakes they’d miss me, and I, for sure, would deeply miss them.

I actually started this article today just to illustrate just one very common tradition here in Philippines living that you should get your head around.  Think it through before you are faced with the nitty gritty parts of the decision, and then you’ll certainly have an easier time of it, whatever your actual role is.  The tradition I am talking about?  Paying forward … one family member gets sent to school by another family member who already got sent to school by someone in the past.

In the US this would seem so strange.  We typically go deep in debt to banks, other family members and the US government to buy a college education and then spend years of our life paying back those dollars (often with significant interest.  Then, those of us with college age children dump ourselves right into the same vicious circle … destroying our savings that might be better used for old age needs, getting our children signed up in school loan programs that are going to cripple them with loan payments in their low-income family rearing years, or (a significant contributor to the current economic crisis) destroying the equity in our homes … building debt that has to be paid back.

Here in the Philippines it’s very common to pay forward instead, and before you even pull out your pocket calculator, I’m very much more in favor of anything with forward in it rather than back.  This may seem really ‘foreign’ to a lot of my fellow Americans.  How many of you have put one of your brother’s kids through college, or have a new baby in the house and already know who is ‘on hook’ to pay for that youngster’s education twenty years down the track?  There’s a lot more to cultural differences here than eating fertile duck eggs, believe me.

In my family’s case my wife and her sisters received help with school from several family members.  As a ‘pay forward’, one sister who completed nursing school here in the Philippines, agreed to support one of her sister’s children.  That girl is now a proud BSN degree holder, getting ready for her us-qualifying NCLEX board exams.  She, and her family, have no crippling debt staring them in their faces, and though it’s undeniable that the ‘supporting sister’ made sacrifices to pay the bills, she’s at a prime time in he life for earning, so the pain is certainly minimized.

My wife took on the task of helping another niece … you’ve already met her, the lovely Gia, who is now enrolled in an old-line quality school here in Metro Manila, studying for a bachelor degree in tourism management.  My wife told me of this promise way back before our marriage, so it comes as no surprise to me, and thankfully the financial burden is really quite small.  It’s a task I am undertaking happily with with my wife (I never raised daughters, it’s a real breath of fresh air to have a happy and vivacious young person like Gia in our home).  Still, there’s quite a bit to this arrangement, far beyond the finances.  Gia really is living with us.  Her mom is in touch, but we now have the hands on parenting role … how much time on the Internet is appropriate, she isn’t texting with ‘low life’ characters is she, is she going to be alright riding the train home from Manila at night?  What about when some nervous looking guy shows up at the door and turns out to be one of Gia’s crushes? 

Those of you currently raising teens know all about these things, for me, it’s a set of dim and distant memories that now have to be sorted of, updated to the 21st century and ‘retooled’ because of the differences between raising a son and raising a daughter.  It’s going to keep me busy over the next three years.  I laugh when I read comments or queries from folks that ask me, “What do you do to occupy your time in the Philippines”? 

But now that I have laid this policy out and given you my thoughts and advice, so not take this in the wrong way.  How you chose to deal with commitments and relationships in your own Filipino family is totally up to you.  But for me?  I feel happy and blessed … almost like a whole ‘added season’ of life, and I’m not only looking forward to it, I’m grateful to my wife for making the commitment in the first place, to Gia for putting up with a mysterious old father figure who must be pretty hard to figure out at times, to Gia’s mom and dad for ‘loaning’ us their daughter and entrusting us with a lot
of important decisions, and I guess also to the Philippines for actually “Redefining Family” for me in many ways.

Popularity: 16% [?]

New Face in the Old PhilFAQS — Introducing Our Newest Author, Gia

gia flores philfaqsIn the past we had some excellent articles written here by a guest author, Arvin.  I welcome any other submissions from folks who have something to say.  I’m not trying to make this blog into a magazine or portal site, but it’s certainly refreshing, even to me ;-) to see words and thoughts aside from my own maunderings.

Here at Blog Central Marilao, Christmas came in June.  Mita, the lovely UnofficalCook and I received a great gift, the long-term loan of two of our lovely nieces, Gia and her elder sister, Ina.

Gia is going to be staying with us during her college years here in Metro Manila and I suggested to her that writing about some of those experiences might be fun for her, as well as good English practice and sort of a permanent diary off this adventure in her life.

Fortunately for me, and for you, dear readers as well, she decided to give it a try.  So without further ado, may I present Miss Geogina Flores, Staff Author, PhilFAQS.com


GIA’S SO CALLED LIFE

This blog is actually an assignment from my Tito David. This is my first time to write about myself and about my experiences in life. I know I will be doing this to improve myself. So, here it goes…

I’m 16 years old and grew up in Pozorrubio, Pangasinan. I’m an incoming college freshman at Philippine Women’s University in Manila. I was born in Manila but grew up in Pangasinan, a province in west central Luzon, about 170 kilometers north of Manila.

I’m an Aries individual and like my sign, I am an extrovert who likes sports and outdoor activities. During my high school years, I spent a lot of my time playing badminton and was a member of our badminton team in school.

We competed in different meets, like: Provincial Division Meet, IRAA (Ilocos Regional Athletic Association), Palarong Pambansa (National Games).


View Gia One in a larger map

The Palaro games were held at Koronadal, South Cotabato (2007) and Puerto Princessa, Palawan (2008). Our team stayed there and trained for a month. We represented Region 1 and competed with other regions. I also had the chance to ride on a ship, the MV Princess of the Stars. It was exciting because it was my first time to experience sea travel with good friends and new friends.

Badminton gave me the chance to travel to these different places in the Philippines. I enjoyed my trips to these beautiful and interesting places. Being a part of this big event is such an honor for me. I’ve become a more independent and responsible athlete and person.

The sport became a big part of my growth and development because it gave me challenges I may have not experienced otherwise. I recall going home late after attending my classes, we had to train with our coach’s guidance. We trained very hard so we could compete in higher meets. And when there were no classes, I woke up early to jog 25 rounds in the oval, do some exercises and did our drills in the gym.

I also love music. When I was a kid, I used to sing in our church choir. I also joined singing contests in our school. I can dance, but have to admit, I’m not that good.

I have a lot of friends and love making new ones. And I have a happy family too!  My family stays in Pangasinan, while my Ate (Elder Sister) and I now stay with our Tita and Tito in Marilao, Bulacan. My grandparents also live nearby and we see them almost everyday.

Popularity: 16% [?]

12 Little Things — Rule 9

This is the tenth in this ongoing series for practical people, both Filipino and foreign who care about the country of the Philippines and would like to do something, within their own means and power, to make it a better place.

Today’s excerpt is one that ought to get a lot of attention (and maybe comments, hint hint) from both Expat and Filipino readers.  Especially from the US side of the house where jobs, job security, retirement benefits and other work-related issues are in the forefront of many people’s minds these days.  I haven’t discussed it with the book’s author, Attorney imageAlexander Lacson, but I’d be surprised if it isn’t one of his most contentious suggestions.  The conventional wisdom on both sides of the Pacific is that higher wages and higher benefit costs are a prime reason for high unemployment figures.  This may or may not be true … I’ll discuss a couple examples which may make a few people re-think the total validity of this commonly held truism, but even if “cheaper help” is not always the best path to full employment, in today’s day of tight economy, isn’t it everyone’s duty to tighten the belt and make do with less?  Isn’t it every Filipino (and American’s) duty to suck it up, work for less and every patriotic employer to make sure she or he pays the absolute minimum to workers?  After all, it’s nothing personal, you understand, it’s only business….


Pay Your Employees Well.


I mean how far from reality can this suggestion be?  Isn’t it just wishful thinking or some sort of “do gooder” impractical thought that suggests a business can even consider paying decent or even (shudder) generous wages?  It’s survival of the fittest out there … if a worker won’t work for the wages offered, s/he should take a hike and let someone else who will work for less step in, right?

And as I mentioned above, “Everyone” knows that employee costs, principally salaries, are a businesses’ biggest stumbling block on the road to make a profit, aren’t they?  So if a business owner or executive pays decent salaries then she or he is headed for business disaster, or at the very least disregarding their duty to the stick holders who really own the business, right?

Well, perhaps, but I have a couple thoughts to add which may spark a different view … let’s see.

First of all, are employees really the largest expenditure a business faces?  The answer to that is yes, no or maybe.  It depends upon the business.  If your business is something like a professional practice, say law office as an example, then it’s true that salaried workers likely make up the largest expenditure.  In general, sound business dictates an employee needs to generate three times or more his/her salary to justify the position.  So if you were a solo practice lawyer and you decided to hire another attorney as a salaried individual, you’d have to take the gamble that whatever you paid the new employee they would generate three times or more their salary within the first year, or your firm would be heading toward the rocks.  And professionals like attorneys typically get a relatively high salary … suppose you paid the new hire $100,000 USD per anum to start .. you have no way of being sure they would generate fees of over $300,000 per year, would you.

So let’s apply the readily accepted “cheap” principle and see how low we could go.  I’m not really sure what the minimum rate you could pay an attorney in salary would be, but in these troubled times let’s assume you find a lawyer who will work for $25,000 a year.  “Can’t be done” you say?  Well I don’t know, but let’s just play along with the example, shall we, to illustrate the point.

This new hire will only have to generate fees of say $75,000 now for the firm to break even .. easy decision, right?

Probably not.  Even though very few lawyers are likely reading here, even Juan dela Cruz or Joe the Plumber knows that in all likelihood, a third-rate, last in his class barely bar qualified $25,000 lawyer likely will have trouble tying his own shoes, much less winning tough, high profile, high pay cases.  If you were a smart attorney you would likely never even consider trying to find an employee at ridiculously low rates .. you’d much sooner do without until you practice justified hiring a top notch practitioner.  Not many can argue with that logic, I feel.

“But Dave,” i hear you saying, “that’s a ridiculous example.  lawyers, doctors, college professors, senior engineers, these are the cream of the crop and relatively few in number compared with the rest of us rank and file folks.  Come back to reality, please.”

OK, I understand.  You want reality?  How about retail sales?  That’s about the lowest common denominator type job, and very common in many respects in the US and the Philippines.  Sadly I don’t have a good source for Philippine examples, but I have a wealth of business data on two nation-wide businesses most readers here are familiar with, Wal-Mart and Costco.  Now overall these aren’t directly compatible because Wal-Mart has many smaller retail “small item” stores, but a division of Wal-Mart competes directly with Costco … Sam’s Club.  In many ways they are almost carbon copies of each other.

One place the surely don’t copy each other is in wages and benefits.  An average Sam’s Club employee (10 years on the job) makes around $40,000 a year.  In Sam’s Club the same level job pays about $20,000 or less after 10 years.  Costco also has a much more generous pension and benefits package.

Thus it’s easy to see Costco is on their way out, any business textbook will tell you they are committing financial suicide.  How have the two fared in the past 6 months of tough sledding for business?

costco and walmart comparison

I don’t know for sure, I’m not a qualified financial analyst, but I’d say they;re running pretty much neck and neck, wouldn’t you?

There are a lot of reasons this might be so, but one prominent one is that Costco workers are substantially more productive than Sam’s Club employees.

The measure of our fictional lawyer’s productivity I started this discourse with was his or her ability to bring in high paying cases.

The overall measure of retail productivity is not much different.  How much money does each employee account for in the profit column, or how much of the overhead that males the difference between profit and loss is chargeable to employee wages?

Each Costco work brings in 20% m,ore per work hour than a Sam’s employee and, surprisingly, Costco’s labor costs as a percentage of sales are only a little more than half of Wal-Mart’s percentage of labor costs.  Hmmm, pay about twice as much, yet save 40% or 50% on actual labor costs per employee … it’s actually quite amazing, worth checking out if you employ people or are thinking of employing them.  It appears that a lot of “Conventional Wisdom’ is just plain wrong.

A comic (tragic?) T-shirt that’s often seen here in the Philippines has this trite phrase printed on it “I Pretend To Work, They Pretend To Pay Me”.  I’ve seen quite a few people wearing them.  If you are running a business and trying to bu8ild up your country, is that a shirt you’d want your employees wearing?  Food for thought.

Popularity: 3% [?]

Philippine Touring — Linmarr Davao City

I’ve been busy th4e past couple days with some local travels here on Luzon, but I wanted to make sure I didn’t let the moment slip away to report on a little of our highly successful trip last week to Davao City.

We chose to stay at the Linmarr Davao Apartelle & Suites

(In the interest of full disclosure I’ll let you know that I have connection to this establishment, fellow Blogger Ellen from www.sailsamal.com, but that is not the reason we chose to stay there. To find out why we ended up at Linmarr read on)

First of all, many who are reading here may not be familiar with the term Apartelle.  It’s a quite common here in the Philippines but I haven’t run into it too many times elsewhere.  It’s a contraction of Apartment and Hotel, which typically means rooms have at least kitchenette facilities and are often oriented for longer-term stays.  Linmarr does this in a well above average way, because unlike many establishments that have little or no hotel features to go along with the apartment, fend for yourself living, they have most any hotel service you can imagine provided, many as standard service, so the distinction between hotel amenities and long-term stay basics are not noticeable.

limarr suites davao I went with my wife, the Unofficialcook, her sister and sister’s two lovely boys, Mazen 4 and Sami 3.  If you start looking for accommodations for a mixed bag crowd like this you are going to need two hotel rooms in most establishments, unless you sleep more ‘chummy’ than we do.  And when you have little kids along you are well advised to have a ref for leftovers and for those late night times when they suddenly get hungry because they ware too excited to eat during regular meal time.  Now looking for two bedrooms or two separate sleeping areas and a minimal kitchen is not really all that tell an order, so if I just searched online for hotels in Davao at random I might wind up with quite a list to wade through.

The key thing, I felt, I was looking for was ‘family accommodations Davao’ and that’s what jumped up in first place on Google in the natural search engine results … I typically don’t look at the paid advertising results or the sometimes useful but often troublesome Google Map listings, unless the ‘real’ (natural search) doesn’t produce for me..  Linmarr now had two important things in it’s favor before I even looked at their amenities and price.  They had a real website,and they cared enough to make it easy for me to find them in Google.  This is kind of a lesson the overwhelming majority of Philippine hotels have yet to grasp … and US hotels too, for that matter.  When I want a place to stay, I like to see an informative (contact information, price, services, etc.) web site right there under the hotel’s own name.  I don’t care for the huge hotel listing sites who want to serve you up 10’s or even hundreds of hotels .. that’s just extra work for me, typing in more and more queries and refining my search, and then finding out that the ‘mega site’ listing doesn’t tell me what I want to know.  Listing in a site like hotels.com may be a bonus (some of those sits even charge hotels for listings, removing any hope of impartiality), but if you care about your hotel, or anything else of value you want people to buy, just follow some simple rules and put a small amount of effort into your search listings … when you stand out on Google, you stand out to me, before I even know who makes the mattresses on your beds.

linmarr pool davao I looked at Linmarr’s listings and everything looked like it would be a good ‘fit’ for us, so I decided to make a reservation.  They could do things better in my book here, since instead of registering directly online, one has to fill up an online form and send that off like an email message.  But I’ll use a system this way if that’s what is available, as long as it works.  Getting an answer back by the end of the next business day is my basic criteria, and here is the next place Linmarr exceeded my expectations.  Instead of a return email, I got a phone call from Linmarr, confirming my reservation and asking me if I needed a pickup at the airport … a free service I hadn’t even noticed in advance (here in the Philippines where labor is cheap, the vast majority of hotels couldn’t seem to care less how you get there …they either offer no airport service or make airports pickups insanely expensive and often cumbersome.  I’ve even been asked to forward a cash deposit separate from the room reservation for pickup service .. how insane is that?)  Instead, when we got off our plane and walked to the door of Davao’s excellent airport terminal, there was the smiling driver with a sign with our name on it, he grabbed the bags and off we went.  Expectations exceeded yet again.

The units like the one we stayed in are similar to what would pass as a quite small two floor, two bedroom town house apartment in the US.  )Of course, ‘small’ is relative, they are far bigger that PhP 10 or PhP 12 million condo units in Manila, so suffice to say they are large enough to be quite comfy for three adults and two small boys.  The units are clean and comfy at a reasonable rate of PhP 2968 per night (about $63 USD at today’s rate).  They take major credit cards as a matter of course, with no annoying add on fees, as I mentioned, airport transfer in a modern clean van with a friendly driver are free, an excellent cooked breakfast is provided in a nice, sit-down restaurant on site, and the staff is just perfect, exceptionally friendly and accommodating.  There’s free Wi-Fi Internet access and a very nice adult, children’s and poolside cafe complex.  The location is off the beaten track … no tricycles blatting past all night long, but walking distance from a large public market, drug stores, 24-hour convenience stores and quite close to down town … we used a taxi several times and I think out highest fare was 62 Pesos (did I mention cabs in Davao are cheap ? Also, Davao has many brand new taxis, clean and quiet LPG powered … wonder when some of the other cites like Manila (where cabs routinely will be three times as much) will catch on?).

Bottom line?  Highly recommended, I’ll certainly stay in Linmarr again if we make another trip to Davao.  Thanks Cheryl and all the rest of the staff for an outstanding stay.

Popularity: 10% [?]

Make Money In The Philippines — Doesn’t Matter Where You Live

Usually I write about business in the Philippines and making money in the Philippines on Fridays and/or Saturdays, but this one has a short lead time … it’s an opportunity that will be gone by Friday.  Will you look at this and say, “Yeah, right , Dave” and then move on to something else? … or will you take advantage of professional education to teach you about something that you can earn from, at no risk, whatever your nationality and wherever you live. 

If you prefer a J.O.B. (Just Over Broke) way of life, this is not for you … but if you want to learn how the big boys do it, join in … the entire cost is you giving up an hour of watching TV drivel or playing on your Facebook page for yet another hour … we all can afford an hour less of that stuff.

There is nothing like ‘free’ to catch my attention.  What about yours?

After the word ‘free’ catches my eye, I then look to see what what the source is … and when it’s Trump University, I generally take advantage and see what ‘the Donald’ has to say.  (by the way, Donald Trump is bullish on the Philippines, I’ve written about it here before)  Stop chasing imaginary dreams and thinking of reasons why you can’t and instead dig in and make your own future.

Trump University

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Popularity: 15% [?]

12 Little Things — Rule 8

This is the ninth in this ongoing series for practical people, both Filipino and foreign who care about the country of the Philippines and would like to do something, within their own means and power, to make it a better place.

Here is an issue almost everyone can get their arms around, or more likely stick their oar into.  I must be one of the most apolitical Americans I know … very boring to many of my friends, because I am not a Republican nor Democrat, and I certainly refuse to be categorized as Liberal or Conservative.  I am at any given time in any or all of those political 12 Little things logo“quadrants”.  I personally feel politics is much too hyped up in my own USA, it seldom makes much difference which opportunist is in office as far as the actual way the country runs, but my goodness it certainly gives otherwise bored folks something to virtually (or even actually) froth at the mouth about for a few years until the next band of charlatans hoves into view.  Here in the Philippines, politics is way, way different


During elections, do your solemn duty.


No matter what sort of political discussions I’ve had with fellow Americans involving US politics, I have almost never found a debater who didn’t have a champion.  Suppose I were discussing today’s US political news.  Even if my fellow debater were vehemently anti-Obama (just for conversations’ sake), s/he would be highly unlikely not to follow-up perceived problems with the Obama administration with positive statements about who “should” have been in there instead, or who they were going to support, perhaps with every fiber of their being, in the very next election.  In other words, even the strongest opponents typically have a better solution to offer.

In the Philippines, (at least to an outsider) it almost never works like this.  There are a plethora of political parties and the mix of parties virtually changes overnight.  As the next presidential election here looms closer, I see more and more news every day about ‘this’ party merging with ‘that’ party, another party changing support in mid stream, and so on.

To the foreigner and even to Filipinos which this foreigner has discussed politics with, it’s virtually a complete mystery as well as to what any party ‘stands for’.  Indeed it seems that few of them stand ‘for’ anything.  There is an general tendency to support the current administration, or a pronounced “ant-administration” slant, and that’s about it

But there is absolutely no lack of support and opinion based on personality.  The news media hangs on every word of former presidents, and these notables are hardly shy about going on TV given every opportunity and instructing party faithful (assuming their party even exists any more) about what to do in the next election.  Another former president, convicted of national plunder, a capital crime is now pardoned and retains great popularity.  His qualifications, aside from being a poor imitation of the sort of plunderer former president/dictator Marcos was, is that he had along career in the movies playing the fellow who fights for the underdog.  From what I see, there’s nothing that will stop him from running and even being re-elected … his popular support and political skills are far superior to many I see.

Enough of the foreigner commentary.  What do I know, anyway>  I’m not a Filipino and I am only a guest here.  My point id this:

Read these words and think long and hard about the author’s words.  When the time comes to go to the polls, whether it be a local barangay captain or the president of the nation, do not act in haste and do not be influenced by peripheral personality traits, the color of the candidate’s shirt, or old family names.  Be for someone or something, not just against … there are more than enough “agin-ers” already. The future of the country … your country … is in your hands.  make a choice that befits the solemnity and importance of the situation.

Popularity: unranked [?]