The second tranche of our salary increase was released this month. The net amount of the increase is not that much, but still, I am very thankful. Just right after I received my payslip, I sent a note to our HR authorizing them to deduct an additional P400/month for Pag-ibig. I increase my Pag-Ibig Contribution every time my salary increases. Why did I choose to augment my Pag-ibig contribution? Firstly, the dividend is higher than bank interest. Secondly, I am certain that it won’t declare bankruptcy since it’s a government owned and controlled corporation. Thirdly, increasing Pag-ibig savings also increases my maximum loanable amount since the latter is based on the Total Accumulated Value (TAV). And lastly, just like “PAG-IBIG”, hindi ko siya ramdam bes! Of course I’m kidding, I am so loved by my husband. Feel ko bes! Going back, hindi ko siya ramdam because it’s automatically deducted from my salary.
Why didn’t I put my savings in PAG-IBIG II since its dividend rate is higher? Because I am lazy. I already asked the HR staff in charge with Pag-ibig contributions and other concerns about it . I even submitted the accomplished PAG-IBIG II form. However, when he submitted it to PAG-IBIG office, he was told that my personal appearance is necessary. And I am lazy to go there. Don’t be like me!
Why didn’t I just put my money in UITF and Mutual Funds? I’m currently investing in UITF and mutual funds. I started investing in equity-laced UITF in 2014, and last year, after my promotion, I put some cash in Mutual Funds (Balanced and Equity). I invest a certain amount on my accounts every month or every time I have extra cash. The UITF is for my retirement. The Mutual Fund-Equity is for my husband’s retirement and the Balanced Mutual Fund is for my daughter’s education. I know that these are medium to high risk investments. That’s why I think putting money in a very low risk investment is a way for me to diversify my investments.
This year, I am planning to increase my paper assets. For the past three years, almost all of our savings went to real estate . We purchased our condo unit just right after we got married. If I could just bring back time, I would have saved more, and purchase a house and lot instead. I don’t know if it’s just me pero iba pa din ang lupa at bahay. Talk about restrictions. In 2015, we hastily purchased a townhouse in Naga City through Pag-Ibig Financing. Honestly, at first we thought that it was a very bad financial decision. The monthly amortization plus the cost of furnishing it caused a dent in our finances until we had the apartment rented last year. At least now, the property is self-liquidating.
Reviewing our current net worth, most of our assets are tilted towards real estate. Only 8.25% goes to savings and paper assets (I didn’t include my Pag-Ibig savings because I don’t know the exact figure). So, yeah, 2017 is about saving and being liquid. Good luck to me!
Oh, by the way, if you want to know more about Pag-ibig savings, just check their website.