Kwentong Pag-Ibig (Not a Valentine's Day Post)

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.