#MINDANAO
What a delight to bask in the sunrise of many areas in Mindanao. In some places, the sun will rise behind some hills, while in others it will emerge from the sea. Either way, the sun rises gently, slowly illuminating the morning in a manner that caresses you and gets you ready to face the day and reflect on how we can face all the challenges and anxieties the contemporary world has for us. If in last week’s article we discussed some imperatives for economic development in 2025, this week we reflect on how we, as businesses and families, can prepare for the road ahead.
Without a doubt, uncertainties remain in the minds of many entrepreneurs. We look at how our costs may need to be factored in, with fuel prices remaining in the same range since the Ukraine conflict in 2022. Will the Middle East situation complicate matters in terms of fuel costs? A big part of our own expenses have to do with transport, and expensive fuel can hike inflation and lower overall consumption and demand of customers. When this happens, we generally have lower sales.
At the same time, there will be opportunities on the road ahead. How then, can we prepare for possible downturns or even opportunities? Where do we invest whatever accumulated capital and savings in activities that can help us survive, and possibly thrive amid these uncertainties? A good capital expenditure plan and operating expenses plan can help us examine our capital expenditures and proposed operating expenses for next year. This helps us manage our cash flows and protects us from the temptation of seeking high-interest short-term loans. In case some expansion or major expense is needed, this can program our capital and maybe seek good financing that will not saddle us with high interest.
As heads of families, we will need to look at how our household uncertainties and possible opportunities to build family income. Will expenses for food and rent rise? Will tuition fees and school expenses add to our bills next year? We will need to prepare household budgets and examine how we plan our regular, recurring operating expenses for light, water, and health insurance while anticipating large expenses such as future balloon payments for household amortizations and a rainy day fund for medical emergencies.
Moreover, we should never tap into financial scams promising quick and hefty returns. Having a better handle on household and family finances will also encourage us to use our financial and material resources wisely, enabling us to put some money into sound personal investments to grow our savings. We need to prepare so that we do not fall into the trap of high-interest loans to tide over such events and sink us into deeper debt.
There is also the need to prepare for special uncertainties such as calamities. This year, many areas had to deal with extreme weather events such as floods, storms, and even volcanic eruptions such as Kanlaon in Negros island. Contingency and continuity plans for business and family will need to be prepared so that we can adapt more effectively and get back to regular living as soon as we can after a calamity.
The sunrise may seem like a simple, even ordinary daily event. But it can inspire such reflections.