SMC Fixed-Rate Bonds Subscription

I haven't recovered yet. I am sulking over this job I have right now and been harboring this ill-feeling towards it in a longer time I never thought of. Truth is, I am careful. Thinking and weighing it over and over again. And constantly praying for His guidance.

I  feel it is getting difficult as the days pass by. No matter how I re frame my thoughts, I'd wake up to the same feeling and always getting myself on the verge of tearing up each time it crosses my mind.

Why is it this difficult to decide? Why is it really hard to let it pass?

I am fully aware that my current salary makes our lives a little comfortable than before but I am really exhausted. I dread the time I have to go to work. I feel anxiety just by entering the building. And I no longer feel the warmth of it.

I know I am lucky and blessed to receive an above the average salary. But you see, money is not everything. There is still that empty part of me, longing for time I wanted to spend doing my 'things'. These 'things' won't bring food on the table though. Torn.

The job hunting continues as I am thinking I needed a new environment to breathe. Maybe to find a job that I am more passionate about. I really don't know yet. But as of this writing, all I received in my email is the thank you note. Still, I am patiently waiting for what's in store for me.

Okay, I was side tracked. But thank you for reading up to this point.

The main topic of this post is our subscription to San Miguel Corporation Fixed-Rate Bonds. SMC offered a series of fixed rate bonds good for 3 years, 5 years, and 7 years. Please read the following article for details:

https://www.esquiremag.ph/money/smc-global-power-holdings-corp-fixed-rate-bonds-a00287-20190411

Initially, we went to the BPI branch were we have a joint account opened to subscribe. After an hour of waiting in line in the customer service queue, we were told that all they no longer accepts subscription as their allotted portion of the subscription has been fully reserved. Also, it will help if we have the phone number of the bank so we could have called up earlier to reserve a slot.

We then try to Security Bank nearby. Luckily, they still have the 3 year Series H bonds available. We immediately filled up all the necessary papers and deposited the planned amount. Glad of these times that we have another joint account in a separate bank.

Although the bank has our credentials, they need to update it with our personal information. They required us to produce 2 valid IDs and verified our TIN numbers are correct in their records. There is no need to photocopy those IDs as they can now photocopy it themselves.

It took us only 30 minutes to accomplish everything. The amount was debited from our joint account. We will be waiting for at least 2 to 3 months for the hard copy of signed documents.

I know that the rate is only 6.8350%. But this is better than having the money sits in the bank for 0.50% annually with a 20% tax.

Maybe when I will be in between jobs, I could be better of studying more investment strategies. Right now, we are contented with whatever small amount our money is earning.

While we wait for the next available investment offer, we continue to save.

From 0% to 37.77% Savings Monthly!

Like what I have mentioned in my previous post, I have been dealing with my anxiety at work for the past months. It's been terrible that I've been dragging myself to go to work each day. I know this is insane. If only options are on my favor.

But of course, there are always silver linings in each situation. I finally decided to quit!

Okay, I am not quitting the job immediately, without a replacement. But has started looking for a job which suits my preferences. Job hunting has now officially started. Our current savings and investment are not yet enough to cover our expenditures in the next 20 or 30 years. C'mmon, I am 38 years old and hadn't solidify our retirement nest egg yet. So glad though that we have started. Late but had started.

In the meantime, let me share with you how are we started saving from 0% before to now at least 37.77% of my monthly income. Saving is the toughest. I'd save before and then my phone rang, and then gone. Or something happen. Or someone needs it. Or I want this. Or something breaks. Or I felt like the income is not enough this payday, I'll save on the next. It never ballooned.

You see. I've just been going in circle. The biggest factor on which it didn't materialize is my self. I am not knowledgeable about personal finance. I was not train to say no. I wasn't able to identify my wants versus my needs. I rely on retail therapy for short term satisfaction.I wasn't able to identify what's an emergency or not. I kept up with friends even though I cannot afford it.

Sad but I went through all of these. I've learned how to be broke and in debt though I am employed. It took years to change. It took a lot of years of courage and humbling experience to finally come to peace with my self when it comes to finances and expenditures .

It didn't happened overnight.

There were so many frustrations.

But let met break it down to you where my salary is going to every month.

Company Retirement Fund Contribution: 10.76%
Pag-Ibig Fund: 1.43%
UITF: 5.72%
Mutual Fund: 1.43%
Insurance (3): 10.28%
Auto - save Accounts:
    Emergency: 3.86%
    Investment: 1.43%
    Appliance: 1.43%
    Car: 1.43%

Total: 37.77%

Total is 37.77% of my net income. But the percentage actually varies each month due to overtimes and night differentials.

Yes, I am receiving a salary above the average. But it took years too to accomplish this and of course, many projects to finish. Also, really working hard for a good performance review at the end of each year. I did overtime. I cover for someone who calls out sick or emergency leave. I initiate projects. I present process improvement. I try to solve the issues presented. I own the issue. And I am 10 years and counting to this company.

It wasn't easy.

I come to work day after day. Clocking myself to an 8 hour shift. I have missed holidays. I have missed family gatherings. I have missed being there.

The sacrifices I have come to terms to be able to get at least a good percentage for a good annual performance evaluation report. Which on some years are fruitless but just have to move on. Sometimes, good is not just enough.

Any employee can understand.

They say that it is good to know the balance between work and life. I am in the process of working it out. I'll let you if I know it.

Going back to the topic (sorry, I jump from one topic to another *wink*), let me share with you how we save the way we do. Disclaimer alert, and you have to remember that. What works for us may not always works for you. You will have to find the method that works for you. You try and give it a time, if it is effective, your desired result is presented. Otherwise, you have to check for more ways. You can actually devise one which suits you.

1. Company Retirement Program

Our company retirement program is one of the benefits our company offers to the employees since day 1. If I contribute to my retirement fund, my company will match it up to 3% of our contribution. And we are allowed to automatically save at the maximum of 10% of our salary. Which if added is already a 13%. Our contribution is already tax-free. But the matching amount from the company is with tax if my separation from the company is through resignation.

When I became employed, I didn't grab the opportunity. The reason behind was that the amount will only be given to you - 1st, if I resign. 2nd, if I was lay off, 3rd, if I retire. So, for many years, I didn't contribute to this retirement program. (Sayang...) My mindset that time was that if I needed the money I cannot withdraw the amount. Right, I don't have any idea yet what's an emergency fund. (Facepalm) Had I known about it earlier, I could have started earlier and should have been able to save more.

For those interested, what you need to do is ask your company if there is a retirement fund savings set up for the employees. I know some, they call it as bonds. These amount is automatically deducted from your salary so you will no longer see it in your payroll account. It appears like a force savings for you but you will thank yourself in the future.

Maybe you are asking, why don't I just invest it outside for higher gains? I tried that. It didn't work for me. At least for this, I no longer see the amount in my payroll account. And then, there is already a 3% guaranteed amount plus of course the gains for my contribution. Our retirement contribution is also invested.

2. Pag Ibig Fund (MP1).

This is the MP1. Our company payroll doesn't support yet the MP2 funding but there were talks. Because I don't have time to go to the branch to complete my MP2 registration, I settled with increasing my contribution to MP1. The mandated amount to contribute as of this writing is Php 100 per employee which the employer match with another Php 100. I started to increase it to Php 300, three years ago. And then Php 500, a year ago. This January, I requested it to increase it to Php 1000. Why?

Because of dividend. The dividend varies but at least it is always above the inflation rates. For 2018, it is 7.61% for MP1 and 8.11% for MP2. I can withdraw the amount if I already completely contributed for 15 years and every 5 years thereafter. But I planned to get the amount when I retire.

Oh, and I just ask our Payroll department to debit a higher amount from my salary. So far, the last time I have gotten my contributions from Pag-ibig, the payments are posted up to date.

3. UITF

Our UITF is from BPI and BDO. It is a monthly auto debit from our account. What we did is to study first the UITF and then went to inquire. Note that you have to be firm in inquiring about the UITF. Some banks personnel will actually encourage you to open a product with VUL. So, you have to stick with what you want. Be ready for so many forms to fill up and 2 valid IDs to be presented. Don't forget your TIN number.


4. Mutual Fund

We have our own mutual fund set up. It is just a small amount for the recurring monthly debit but at least, we get to save on it. We have our separate one time pay mutual fund account to other institutions too.

5. Insurance.

We have our insurances too. I don't think I need to elaborate much about this. But initially, we only have the basic insurance. And later on, when there is an extra amount, we try to purchase another insurance with riders that were not covered on what we initially bought. And as we grow older, we noticed how the premium amount increases.

Honestly, I do not have an insurance when I was single. I don't find it as a necessity. But when I have my little girl, I crammed. I don't want to leave her with nothing just in case.

If you are looking for an insurance, talk to every agent. Have them present their products. Study what they offer. Learn about the company. Go with the product that really suits you (not with who you know) and be honest with what you can afford.

6. Auto Save Accounts.

I set up this account to automatically deduct an amount from my payroll account. These are set up for those 'just in case' situations. Like a broken appliance. Just in case, we have our own car in the future. Like for an upcoming good investment such as bonds, RTBs, fixed income securities and such. We try to save an amount first then get to invest it when there is an opportunity.

Savings isn't innate to me. It took years to develop and to finally be able to set aside an amount. I was once  living from paycheck to paycheck until I learned my lesson. I guessed almost everyone had been where I was once.

It is a fulfilling journey to finally be able to get a hold of our hard earned money and be able to enjoy its purpose without overspending and getting in debt.

In the future, I plan to save at least 50% of my income. That is if I am still with the same company. Otherwise, I will have to re-adjust if I have a new job and a new salary.

Hand Craft: Crochet Works In a Series 2

I started my April on a graveyard shift after 4 months on an afternoon shift. I can sense my body is not adjusting well to the new time clock. Honestly, I feel exhausted every day. Anxious going to work. Questioning myself already. But really don't have much time to think about it as we were also preparing for the moving up ceremony of my 5 year old from Kindergarten.

I don't have time to crochet this past weeks. Nor have completed any book. I feel frustrated with my job hunting as well. But had to remind myself to find joy in what I have. It is a difficult phase trying to fake a facade when deep inside I am wondering and overly thinking.

Anyway, in this series, let me share with you once again some works I have done in the past. Hoping to be able to find more time to make more. I am calm working on a project and just crocheting in a corner. Sadly, I don't feel well.

Works I have given as a gift to friends. :)

Urgent Call to Stop Using Plastic!!!

If you've been in this blog for quite sometime, you will know that I quit watching news because it frustrates me and that it gives me negative vibes. But last night, I accidentally watched a news about a dead whale with 40kg of plastic in its stomach.

My heart bleeds. I am heartbroken. This is because of us!

What are plastics?

Google defines plastics as a synthetic material made from a wide range of organic polymers such as polyethylene, PVC, nylon, etc., that can be molded into shape while soft and then set into a rigid or slightly elastic form. Plastic bags are not biodegradable. It will take more than 1000 years or even more before to break down into smaller particles that will continue to pollute the soil and water. As early as in the 1970s, there have been concerns about its disposal because plastic lasts in the environment longer. These days are worse as it continue to pollute our land and oceans. 

Why should we stop using plastic?

Plastics travel from coast to coast.

Birds and marine animals mistake the plastics as food.

Plastic stays in the landfill forever if ever it reach the landfill.

There may be plastics in our bodies. Bisphenol A, “BPA,” typically used for polycarbonate bottles and the linings of food and beverage cans, leach into our food and drinks.

How can I contribute to less usage of plastics?

1. I personally ban the use of plastic bags.
2. I say no to plastic straws.
3. We practice BYOB (Bring Your Own Bayong)
4. We bring our own water bottle.
5. I bring my own pack snacks in containers.
6. I personally avoid snacks/food with excess packaging.
7. We stop using plastic cutlery
8. Swap out the plastic toothbrush. 
9. Replacing the plastic with wire hangers.
10. I switch to e-billing.
11. We avoid buying frozen foods because the packaging is mostly plastic.

Thoughts:

We are a work in progress. We are not perfect with implementing the zero plastic waste management. There are a lot of areas that needs improvements. This is a fact. I acknowledged that.

And at this age, when almost everything is using plastics, it is somewhat like choosing the lesser evil. Finding the alternatives to be able to eradicate the use of plastics in our lives is a task we should prioritize. The effort will make a difference.

If only, each and every family will take part, we can save the marine lives, our ocean, and our land. Our earth.We should be responsible for all of the items we purchase. Not just to save but also the effect it will cause to our future generation.

And I repeat: This topic is within my circle of influence. It concerns me and my child. I should take action.