Thursday, February 7, 2013

An idiom realized: Part 2

Money talks, the hobby, and to pay it forward.

Now for the second half of my post, let's see the more concrete things I've done this January to make me say I've started 2013 with a bang!.

Financial Projections

Soooo January 2013 is also the month where I finally made an effort to be aware of my financial movements. I am a semi-careless spender, and it just hit me that the time has come for me to think long term.

January 16: Unit Investment Trust Funds

With the help of an officemate (as is explanations and all, thanks Josh!), I finally signed up for BDO's PFIF (Peso Fixed Income Fund).

From their website:

Investment Objective:
The Fund aims to provide a high level of income with preservation of capital and maintenance of liquidity by investing in a combination of short to long-term fixed-income securities.
I've enabled the auto-debiting of a specific amount every 15th and 30th of the month from my account just so I know I'm putting my money somewhere. The PFIF is intended for investors of moderate risk appetite. When I took the test, I scored somewhere to the range of moderately aggressive risk appetite, actually. But since I'm only starting, I think this one's my best bet. There's risk of losing, but there's better chance of gaining also. I'd prefer to be more adventurous like stocks and all, but officemate said that [according to a finance seminar he attended endorsed to him by our CFO] it's not advisable to invest in our PSE now since local stocks are overvalued. It's Korea and China stocks that are more booming now, if you're into that.

Well just to share, in layman's terms what I do: (thanks to my financial adviser Josh haha. I'm an idiot at finance stuff.)

I auto-debit to BDO an amount per month. When the total amount of that reaches P10,000, the bank will give me a certificate signifying that I joined the BDO-PFIF and that I have invested P10,000. This certificate's just more of a formality though, since the bank has already been investing my money from the first time I auto-debitted (? lol forgive my english) an amount.

So for example: I auto-debit 1k per month. On the 10th month, I expect a certificate because I've reached 10k already. I may actually receive a certificate of P10,100 if my money has already earned throughout that 10 months. On an opposite case, I may need to wait another cutoff if my total falls short, say P9,950 because I lost some in the previous investments.

There's a holding period of 30 days after I get that P10,000 total, so I can't touch it yet. Only after 30 days can I start withdrawing or depositing more or moving my money anytime. But to quote BDO-PFIF, "In order to minimize risks and maximize earning potential, participants/trustors are recommended to stay invested in the Fund for at least three (3) years." And since I am compliant, I intend to do that. Lolz.

January 30: Imay's 12% return

Imay has this business (previously in the mining exploration industry but now for his transportation business in Compostella Valley) where he's open for investments. The return is guaranteed 12% every 4 months, compounded. I've deposited a couple of thousands last year but just my extra, but this year I intend to do it regularly. Let me show you how I did last year:

I invested P2,000 last July 2012, and another P2,000 last August 2012. In November 2012, my July-P2,000 became P2,240. And last December 2012, my August-P2000 became P2,240.
On March 2013, my July-P2,000 will be P2,508.8, and my August-P2,000 will be the same amount by April 2013. Not bad for something passive - I almost forgot that I invested these amounts!
I've resumed this auto-debitting for 2013 every 15th and 30th monthly. There are no papers with this etc, I just know Imay so this is a very personal investment. I wouldn't recommend this kind of investment if you do not know the person you are giving your money to, and if you do not know his/her business.

January 2013: Paluwagan 101

Lastly for my financial track. When was the last time you joined a paluwagan? As a kid, I never did. But then again I didn't have money as a kid so I had no idea what a paluwagan is. Itay however has invited me and my sister to join theirs in the office, just to encourage us to save and get a lumpsum by November. The amount isn't too big so I decided to join, and I look forward to getting the whole pot by November - in time for the 13th month!

Hobby Bit

Now a contrast to my saving up scheme from above, I found another thing to spend on! Haha!

January 27: Signed Up

Thanks to Claire, I now have a new collection! Wait no that's wrong. I now have a collection period. I've always liked a lot of cute stuff, but hasn't really pursued anything. When I was a kid, I joined the Stamp Club at school, but somehow lost my stamp book (and never recovered lol. Low EQ kid). In college, I was into different types of papers (card stocks and printed papers from scrapbooking shops). Found them to be a waste to just store but didn't find anything specific to use them on, thus the birth of my notebook business. I sold everything I made but wasn't able to sustain it since doing everything handmade demanded a lot of time.

Anyway, to today. I signed up last January 27 to as per Claire's recommendation. Cool concept! Claire's Postcard Weekly posts just had really pretty cards and I was missing art a lot. I've always been fascinated by weird twisted visuals so I saw a lot of potential and fun in looking for postcards that are pretty weird. Also, the idea of getting postcards in the mail, stamped and all, is just too exciting to pass up!

January 31: First 5

I sent out the first five postcards for last Thursday. It was the first time I sent anything via snail mail, so it was exciting! Really lucky that our office is located just a building away from the post office in Ortigas. I had no idea that sending a postcard was that affordable. I sent 3 postcards to Germany, 1 to The Netherlands, and 1 to Hongkong. All of them cost only P14 each, so my total was just at P70! I am so reviving snail mails and postcards. Now the tiny problem - how to get people's addresses?

Paying it Forward

The love's gotta be returned.

January 4: The World Vision

I've always had this World Vision pamphlet with me ever since 2010. They are a group that helps bring children to school, with just a P600 monthly pledge from its sponsors. I've long wanted to sign up, and finally this 2013 I did. I made my first pledge this January 4, via BPI online bank transfer. My "student" is Shane Sultones, a very cute 9 year old girl. I look forward to this long term relationship with her, and will really take care of this to ensure her education. I'll definitely write to her via snail mail too! :P Can't wait!

I'm very blessed with this beautiful January to start my 2013. I surely am hoping that the rest of the year be just as blessed.

I hope you guys had a good start too! :)

"Life is about moments - don't wait for them, create them."

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