Many people do not realize it, but King Bhumibol was a philosopher as well as a monarch. Over the course of his reign, His Majesty developed a philosophy of economic development that has paved the way to sufficiency within the nation.
The philosophy called, “sufficiency economy”
or “The Middle Path”
can be applied to personal, corporate and family finances, as well as to national development. Even though it was designed to help the kingdom advance, while retaining its traditional values, sufficiency economy can also serve as a guide for individuals, firms, and families.
The Principles of Sufficiency Economy
Sufficiency economy is very easy to understand as it is based on three principals that can guide any economic transaction. These principles are:
- Moderation. His Majesty understood that most financial troubles are avoidable by living within one’s means. A good way to apply this is to avoid debt and buy items what you can afford. This quote from the King provides excellent advice we should all take to heart:
“Being moderate does not mean being too strictly frugal; consumption of luxury items is permitted… however, should be moderate according to one’s means,” (Royal Speech, given at Dusit Palace, 4 December 1998).
- Reasonableness. All choices made should be justified by ethics, law justice, and social norms. For example, a person should not offend his or her neighbors by driving a car that is far more expensive than theirs. It also means you should obey the law and treat others with compassion and justice. One example of reasonableness is willing to pay taxes to support the nation.
- Self-immunity. This concept is also known as resilience. It means developing the strength and resources to survive.
His Majesty’s official philosophy outlines four examples of self-immunity that everybody should strive to achieve including:
- Immunity to changes in material circumstance: This is achieved by having enough savings to cover expenses for several months, having sufficient insurance and engaging in long term planning. Long-term planning might include a will and life insurance, so your family will be taken care of should anything happen to you.
- Immunity to social changes: This can be achieved by developing a sense of inner peace, controlling one’s anger and learning not to take offense at insults.
- Immunity to environmental changes: This can be achieved by living in harmony and learning not to harm the environment. You can achieve this state by living in a way that does not harm the environment, for example by walking or taking mass transit instead of driving to work.
- Immunity to cultural changes. This is achieved by understanding, appreciating and value your culture, history, and heritage. It also involves understanding and respecting the culture, history, heritage and values of other nations and peoples.
How to Apply Sufficiency Economy in your Life
The goal of sufficiency economy is to achieve harmony and stability in finances and life. King Bhumibol believed that three specific behaviors were required to achieve the middle path.
These behaviors are:
- The accumulation of knowledge. You should study financial matters extensively and gather as much information as you can before making a decision. For example, you should carefully study every investment you make and understand its impact on society as a whole, the kingdom and the world. All planning should be based on gathered knowledge.
- Ethics and virtues. King Bhumibol taught that all decisions, including financial ones, should be based on your ethics and values. One should always consider the ethical implications of every purchase and decision. In particular, His Majesty wanted ethics to be applied to all business decisions.
- Foundation building. King Bhumibol believed that a nation, business, or household must have a firm foundation to stand strong.
An example of this would be a family with sufficient savings to cover its bills for several months, even if the breadwinner lost his or her job. Another example of a firm foundation is parents that make sure their children receive the best education possible in Thailand or abroad.
A business owner might build a firm foundation by purchasing the latest equipment, or ensuring that his or her employees receive the latest technical training.
How Krungsri can help you Apply Sufficiency Economy in Your Life
One way you can apply sufficiency economy in your life and business is to work with a bank dedicated to its principles such as Krungsri Bank of Ayudhya. Krungsri offers a wide variety of financial products designed to help you achieve these goals.
These include several kinds of savings and time deposits
designed to help your family lay a firm foundation for the future. One of the best of these is the Save for Child Time Deposit
allowing you to save money tax-free for your children’s future.
Krungsri can help you increase your knowledge of financial matters with our website and exclusives. The exclusives include an Investment Consultancy Service to help you use your money to lay a firm foundation for your family’s future.
Helping Businesses Achieve Sufficiency Economy
Bank of Ayudhya offers a wide variety of services
designed to help businesses of all shapes and sizes achieve sufficiency economy.
This includes collections services that make it easy for customers to pay bills and invoices through a variety of payment channels. A variety of payment services including Cheque Express that allows fast payment to the Customs Department and the Port Authority, make it easy for a business to meet all of its obligations to the kingdom and suppliers.
To help businesses meet their obligations to employees, Krungsri offers a payroll service that allows for direct fund transfers straight to bank accounts. The service ensures the entrepreneur his or her employees will always be paid, on time.
In keeping with His Majesty’s teachings, Krungsri uses the latest technology to create a secure, cutting-edge liquidity management system. This system creates a firm foundation and enables businesses to live within its means by ensuring the cash to meet expenses is always available.
Krungsri’s e-banking systems provide both individuals and businesses with as much knowledge of finances as possible. That way decisions can always be based on accurate financial knowledge rather than guesswork.
Bank of Ayudhya Krungsri is dedicated to making His Majesty King Bhumibol’s vision of a Sufficiency Economy a reality for everyone.
To learn more about sufficiency economy visit this website