OVER the last few months, a series of unexpected events have created difficult financial circumstances. Geopolitical tensions between the United States and Iran wrecked the world’s supply of fossil fuels, placing undue strain on Filipinos in particular. Inflation spiked to above 7.2 percent, with transportation and food costs surging painfully for consumers. A red alert for the National Grid Corp. forced power interruptions over Luzon and Visayas.
As a Registered Financial Planner, these kinds of unpredictable events are stressful. In a world where you are projecting how much money you will need every year as part of financial planning and personal goal setting, the first few months of 2026 can wreck your wallet and your budget. It is maddening because it makes one feel hopeless. It is discouraging if you have spent a significant portion of your time trying to plan your life. Imagine saving up for a house or car you planned on buying at the end of this 2026, only to see those same savings drained by higher gas and grocery bills. Now think about how organizations might feel about plans pushed through layers of corporate and regulatory scrutiny.
The late investment genius Charlie Munger was famous for his strategy of “Invert, always invert.” He was successful because he focused on avoiding failure. He thought of all the things that could go wrong and avoided them as much as possible. It sounds elementary, but it is in quite difficult.
Using the Munger approach you would know the Philippines is susceptible to imported inflation because it has very little domestic production of everything. To avoid it, you wean yourself off of the imported items and utilize what is available locally. Some bought electric vehicles to reduce fuel expenses, although those vehicles are imported as well. Others moved jobs or homes to reduce their need for travel, also reducing transport costs. Eating habits are some of the toughest things to break. But there is always something more affordable to eat. You may not want to downgrade your usual lunch outs or even your regular wet market and grocery purchases, but if you have a budget and you are looking to tighten your belt to survive, food costs can be brought down.
This can be applied to almost every situation. If your city gets flooded regularly, buy Acts of God insurance. If your country has a history of power supply problems, diversify your energy sources with renewables or set up contingency plans like generators. If your loved one working overseas has job security problems, use their remittance checks wisely through investments and savings. Even though life can send you curve ball after curve ball, you can persist. You can move forward and find a way to carry on.
To invert Munger’s strategy, we go to Mike Tyson who famously said, “Everyone has a plan until they get punched in the mouth.” You may argue that the start of his year has indeed been a “knuckle sandwich” to the face. But that quote in itself still emphasizes the value of adaptability and agility in the face of adversity. After you get punched in your mouth, what are you going to do? Lay down, or fight on?
Here is a great anecdote from one of the many financial wellness seminars I facilitated for China Bank Savings. I called out a young student in a seminar — A.S. Fortuna Branch in Cebu, for being distracted, and I urged him to participate more closely. He got a little bit of a ribbing by his classmates, all of them sniggering at him getting caught not paying attention. But, by the end of the session, he was the most participative person there, and he had shifted from a clueless teenager to an eager beaver with a business plan for “kamote” or sweet potato chips. He discussed carefully plotting out his personal cashflows, accounting for his income and expenses, and getting the business up and running. That’s adaptability. Admittedly a less complex situation compared to what we are facing as a nation right now, but it is nonetheless, adaptability.
Invert, always invert. Adapt, always adapt.
Warren Augustus de Guzman is a Registered Financial Planner of RFP Philippines. To learn more about personal financial planning, attend the 116th RFP program this June 2026. Email info@rfp.ph or visit rfp.ph to learn more about the program.