Very few Thais have emergency funds to handle an unexpected situation: study

[Chomper Higgot]

6 minutes ago, Denim said:

Do you have any reliable in depth links detailing this. I would be very interested to learn more about this. Thanks

I’m just going out for Christmas dinner, I’ll dig something out for you tomorrow 

[Bruno123]

3 hours ago, Kenny202 said:

Never a truer word was spoken! I mean physical laziness is one thing but I can't abide mental laziness. My wife has an utter aversion to sit and think through anything for even a minute, when she has nothing better to do apparently than scroll through Facebook for hours investigating other peoples lives. Forget planning, they seem to give every opportunity in life to set them selves up for failure. Have you ever seen 2 Thais organizing to meet somewhere? Meet you near Lotus on big road (the big road is 15km long and has 7 Lotus shops). I miss not having someone to bounce things off or give ideas. 

I thought it was just my experience ????

 

It's not a Thai thing; it's a manic female thing(hides).

[BumGun]

1 hour ago, Airalee said:

I can’t think of a better example (although avocado toast seems to be the new example back in the US).  When I first came here in early 2011, just about every Thai I met would drink Starbucks frappucinos multiple times a week and laugh at me for drinking 10 baht coffees.  When I was derisively asked why I didn’t drink Starbucks, I replied “Starbucks is for poor people trying to look rich…I’ll bet that most rich people probably make their coffee at home and buy Starbucks stock instead of drinking their coffee”.

Haha, this resonated, I own Apple stock and a cheap Android phone.

[Kadilo]

3 hours ago, BritManToo said:

 

I bung her 3kbht every month, as long as she doesn't come to stay with me.

 

????

[OishiRefill]

3 hours ago, BritManToo said:

Most of them don't have the money.

But they do have a family farm where they can go and live.

There was a similar report, "most Americans couldn't pay an unexpected $500 bill"

Most of the world live hand to mouth, it's the way it is now, it's the way it's always been.

 

Foreigners love to bash Thais, but in reality they're probably more capable of surviving in an emergency than anyone in the western world, and as least they have no danger of freezing to death like many Brit pensioners every winter.

Good point. Also, plenty of western (or other) expats here are living pay check to pay check, running out before the end of the month and some neck deep in credit card debt. Those from the 'relatively' lower income bracket of 35-50k, I mean.

[Airalee]

26 minutes ago, Denim said:

Do you have any reliable in depth links detailing this. I would be very interested to learn more about this. Thanks

I can send you a good link by PM (not allowed to link from it here).  But basically, as incomes for farmers went up during the scheme, they went into debt to expand operations and for other basic consumer based purchases.  Think of all the new pickups we would read about in Issan for example.

 

As incomes go up, people generally take on higher debt levels that are commensurate to the rise in incomes.  It wasn’t much different than the housing bubble in the US.  Then, when the game stops and incomes and asset valuations return to their true non-distorted market levels, the debtors can bo longer service the debt and then lose whatever collateral that was pledged in security for the loans.  In the US, it was houses, here in Thailand I guess we can assume it was farmland.

 

Debtors lose their assets to those who are cash rich after the bubble pops.  Lather, rinse, repeat.

[metisdead]

Some off topic posts and replies have been removed.

[Airalee]

18 minutes ago, BumGun said:

Haha, this resonated, I own Apple stock and a cheap Android phone.

Yup…same here.  
 

I’m not sure that I know many Thais who don’t have IPhones.  

 

I had a 600 baht Nokia “dumb phone” for years when I first got here.  Upgraded to a ฿3000 smartphone.  Ex-gf bought an IPhone and gave me her “not good enough for her anymore” Samsung.  I’ve been using it for 4 years now and she’s probably on her 3rd IPhone by now.

[bangon04]

6 hours ago, ezzra said:

There is no such term in the Thai language as "emergency funds" Thais mostly lives from day to day, from the hand to the mouth...

"According to a financial literacy survey by the Bank of Thailand"

is there a Thai term for "Financial Literacy"? or do they just use the Chinese words......

[TheScience]

3 hours ago, BritManToo said:

Foreigners love to bash Thais, but in reality they're probably more capable of surviving in an emergency than anyone

Both my in-laws have done a great job saving hard won wages.

 

I encourage my wife to save and she does a pretty decent job. Her sister with two daughters in university works hard and tries.

 

Her brother got into a financial mess but it's worked out. He's wiser for it.

 

I consider myself lucky

[Denim]

1 hour ago, Chomper Higgot said:

I’m just going out for Christmas dinner, I’ll dig something out for you tomorrow 

Thank you. Appreciated.

Enjoy your dinner.

 

[MadMuhammad]

5 hours ago, The Cipher said:

A few thoughts on this article. (1) It's really unfortunate that personal finance isn't taught in schools. People should have access to this info. If someone will translate and distribute I'll write/teach a beginners course for free.

 

(2) The quoted guy is right. Budgeting is critical and prioritizing the savings bucket before allocating the spending bucket is also the right move.

 

But at the same time like, if you're earning 30,000 and saving 10% that's like...$100 per month. Better than nothing but probably not gonna get you to where you want to be, either.

 

Man I hate these coffee examples (not sure why everyone uses coffee as the example). Specifically because saving 50 THB/day isn't enough to move the needle. 50*365 = 18,250 in increased savings per year. Less than $1,000. Like, I get that it's an illustrative example, but damn - everyone seems to paint coffee as the spending villain. Maybe I'm just triggered because I buy a lot of coffee ????

 

Anyway this brings me to the final point: (3) cutting spending is bounded on the lower end by zero. Can't spend less than 0. But increasing earnings really has no upper limit. Teaching people to be responsible with their money is important, but I feel that part of that financial responsibility ought to be making sure that you have enough income to live a good life while also being responsible on the savings/investment front.

 

The art of personal finance is walking the line between living well today and planning for the future. Starting early and expanding income is the best way to make sure you can do both.

I like my coffee like my women, cheap and from a 3rd world country 

[StayinThailand2much]

7 hours ago, pixelaoffy said:

Gov of Thailand not for the poorest . The most divided country in whole of asia.  The BMW and mercedes next to the beggars 

Living in Thailand convinced me that people indeed deserve their government...

[koratkarlos]

My Thai wife's parents get 800 THB/month each from the government.  And I see the Hiso driving expensive cars and all the money going to the government and military.  Not to the people.  If I were Thai I would join the protests.

 

And this is what makes me angry living in Thailand.  My life is good here.  And when I ignore the politics perhaps it is perfect.  But when I think about the income inequality I get angry.  It is not fair.

 

But amazingly, the poor Thai people are happy.  Happier than my rich American friends.  And with their wisdom I am learning to ignore the political BS, both here and everywhere, and live the simple life that makes Thailand so special 

[RandiRona]

Wow...its a damn long thread where falang experts talked everything from Latte to Phone to cat pee, where Thais are overspending but not Lottery? That's where all supposed to be Savings are going...Poor are the biggest sucker of lotteries which has zero financial sense of all vices.

[spidermike007]

More now than ever, as the goons have been allowed 7 years of economic sabotage, combined with two years of surly, uneven shutdowns, the choice of low end vaccines, total decimation of the tourism industry, and countless other forms of destructive decisions and behavior. Out with the dastardly dinosaurs!

[it is what it is]

 

this is not a thai phenomenon, just look at the number of westerners who get into trouble in thailand and have to resort to crowd funding for financial help - neither themselves, their friends or families have emergency funding.

[TheScience]

Yes, the lottery - a tax on the poor.

 

As all this covid hysteria turns countries inward I think foreigners will be singled out, double priced, taken advantage of even more than before. An attitude of - what are you doing here with your money and smiley face? Will develop.

 

Bubble tea, sweet expensive coffees, baked goods.

 

Many parents do very stupid things like giving their home to their children which they sell. Then, both have nowhere to live.

 

Cheap holidays in other people's misery - Rotten/Lydon

[Damrongsak]

16 hours ago, JimmyJ said:

Same could be said of USA citizens,

Like my sister "Susie Spendthrift".  She and her husband are lucky if they have 2 weeks worth of cash.  I loaned them $15,000. USD to have new shingles put on their house.  Not like they didn't see it coming for years. 

[Enzian]

This was the reason my longest term Thai relationship ended. Her 22 yo son developed a bad case of colitis, without asking me she sent him to a private hospital and rung up a 47,000 baht bill over a weekend. No way any of them had that much on hand. I paid it and said this is the end.

[Enzian]

[Misterwhisper]

20 hours ago, webfact said:

a large majority of Thai people don’t have enough money to handle an emergency situation for longer than three months

No problem, because that is offset by a tiny minority of Thai people who have "tucked away" more money than any of them could use up in a lifetime -- emergency situation or not.

[Lemonltr]

16 hours ago, Denim said:

Do you have any reliable in depth links detailing this. I would be very interested to learn more about this. Thanks

I doubt whether there are any government statistics published about this but I believe that many foreigners have come across it. 

Thaksin is often criticised but was loved as he slowed this trend when bringing in the 30 baht health scheme as hospital costs were the main culprit. 

I had a gf whose family sold land and home to fund hospital costs for father. Another great guy refused to sell their house as he said he couldn't rest in death knowing his family were homeless. He got minimal health care. Buckets of tears in the telling. 

[JimmyJ]

"63% Of Americans Don't Have Enough Savings To Cover A $500 Emergency"

https://www.forbes.com/sites/maggiemcgrath/2016/01/06/63-of-americans-dont-have-enough-savings-to-cover-a-500-emergency/?sh=6a11b6874e0d

 

Edited December 25, 2021 by JimmyJ

[StayinThailand2much]

19 hours ago, MadMuhammad said:

I like my coffee like my women, cheap and from a 3rd world country 

Cheap and hot.

[Mr Meeseeks]

20 hours ago, OishiRefill said:

Good point. Also, plenty of western (or other) expats here are living pay check to pay check, running out before the end of the month and some neck deep in credit card debt. Those from the 'relatively' lower income bracket of 35-50k, I mean.

That's my car payment. 

 

11 minutes ago, JimmyJ said:

"63% Of Americans Don't Have Enough Savings To Cover A $500 Emergency"

https://www.forbes.com/sites/maggiemcgrath/2016/01/06/63-of-americans-dont-have-enough-savings-to-cover-a-500-emergency/?sh=6a11b6874e0d

 

That's twice you've posted here about Americans in debt. You do know this is a Thai forum right?

[Longwood50]

On 12/24/2021 at 12:28 PM, webfact said:

A large majority of Thai people don’t have enough money to handle an emergency situation for longer than three months, especially during such a crisis as the pandemic.

In response the Thai government is currently negotiating with Dave Ramsey to conduct Thai Financial Peace University 

Edited December 25, 2021 by Longwood50

[Mr Meeseeks]

An expat would be wise to be keeping funds in the following assets:

Stocks/shares

Crypto

Luxury watches (esp. the big three; Rolex, Audemars and Patek)

Life and health insurance savings (I am in a life insurance policy from Samsung for tax rebate purposes)

LTFs and SSFs from Thai banks (again, tax rebates here)

Gold

Other precious metals

 

Your diversification will be up to your own preferences but that is what I recommend at the moment. 

 

Don't keep more than a million in a Thai bank either unless you absolutely have to, as it won't be protected when everything eventually goes tits up.

[The Cipher]

1 hour ago, Mr Meeseeks said:

An expat would be wise to be keeping funds in the following assets:

Stocks/shares

Crypto

Luxury watches (esp. the big three; Rolex, Audemars and Patek)

Life and health insurance savings (I am in a life insurance policy from Samsung for tax rebate purposes)

LTFs and SSFs from Thai banks (again, tax rebates here)

Gold

Other precious metals

I realize you mean well with this post, but I'd suggest that following this recommendation would be irresponsible for a large number of the retirees in Thailand.

 

If retiree is 65+ with a couple hundred Gs in investable assets and a non-inflation-indexed fixed pension, that guy definitely should not be dropping 10gs on a Rollie for 'diversification.' What's the hedge there, a barter asset for the post-apocalypse world?

 

Also would tend to caution against material allocations to crypto for (most) seniors. High vol risk-on assets in rapidly evolving markets probably isn't the play if retired and needing to stretch pension income/nest egg.

 

Finally I'm not too familiar with LTFs/SSFs (are they Thailand-specific products?) but they appear to have a lockup period. Might 10 years be too riskily long a lockup period for a retired person?

 

Sorry. Not trying to be a pest. Just offering an alternative perspective.