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How to cope with declining US Dollar and rising Peso?

A lot has already been written explaining the reasons behind the fall of the US Dollar but very, very few have offered solutions on how to deal with it. In this article, we give some suggestions on how to face the challenge of a depreciating US currency.

The fall of the US Dollar is very much apparent in the Philippines, with the Peso appreciating by as much as 18.8% in 2007 — making it the year’s best performing currency in Asia.

Although the peso’s rise has brought economic benefits such as lower inflation and higher purchasing power, it also hurts exporters who are currently struggling with rising prices and Overseas Filipino Workers (OFWs) and their families who are now getting less from their dollar earnings.

What then to do in order to deal with a depreciating dollar and appreciating peso?

Here are a few tips.

‘Federal Funds Rate’ – explained in simple terms

On September 18, 2007, the US Federal Reserve (the “Fed”) cut its target Fed funds rate by 50 basis points (half-of-a-percentage point) to 4.75%, giving a boost to stocks markets worldwide.

The Fed also cut its discount rate by another 50 basis points, bringing it down to 5.25%.

Lifestyles of the rich and wealthy

The richer you get, they say, the more money you have and the more expenses you make. And yet, there are rich and wealthy Filipino … Read More

7 Tips on HYIP and Online Investing

You have started investing in online High Yield Investment Programs (HYIP)? Be warned: 99% of investment offers you see on the internet end up as scams.

But if you do intend to lose money online, read on because we have prepared a list of seven easy steps that will surely help you lose your hard-earned money to scammers on the internet.

How much of your monthly salary/allowance do you save?

Do you spend all of your monthly salary/allowance or do you save a part of it? Tell us by posting in the "How much of your monthly salary/allowance do you save?" thread in the forum.

Replies of some PMT members after the jump.

Saving P1 million by age 30, is it already an achievement?

What do you think of someone who’s already saved a million pesos by the age of 30?

Would you already consider that an achievement? Or is that something normal?

Are you frugal or stingy?

All of us have to make choices about how we spend our money. Wise choices allow us to build our wealth and, eventually, achieve financial independence. But how do you decide when you're being frugal, and when you've crossed the line into stinginess?

Here are some benchmarks to check if you are stingy or not.

If you use 2-for-1 coupons at a restaurant, you might be frugal. If you base your server's tip on the discounted bill, you're probably stingy.
If you decide in advance how much to spend each year on charitable contributions, and then try to stay within that budget, you might be frugal. If the last thing you gave to charity was an ancient can of lima beans you wouldn't eat yourself, then you're probably stingy.
If you use a tea bag for more than one cup of tea, you might be frugal. If you offer a guest the cup made from the used bag, you're probably stingy.

Frugality can be, and often is, a virtue. It implies you're being careful, not wasteful, with your resources.

Stinginess is a vice, and it carries a whiff of meanness. The word "implies a marked lack of generosity," as Webster's tells us. Stinginess is about pulling back when the more-human impulse is to give.

Is online income taxable?

Finally, after months of discussion in the Tax on Online Earnings thread in the PMT Forum, we now have an official reply regarding taxation of … Read More

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