Last January 28, we received our first pay out for the Retail Treasury Bond (RTB) that I placed last October, 2012. Before I left the country I was thinking of ways on how to increase our savings and I chanced upon RTB Tranche 16 which was offered last October 25, 2012. Here's the details about the RTB:
As we were frustrated with the interest earnings of our savings and time deposit accounts, we decided to switch to other investment instruments. The RTB is negotiable and transferable so we could sell it anytime we need to. However, we did not entirely shy away from TD and Savings accounts, we still maintain a number of accounts to ensure our liquidity.
One of our goals this year is to increase our investment portfolio. With that, we are planning to buy a lot wherein we can put up at least 5 units of apartments for rent. We're fortunate that my father owns a construction company and my brother studied civil engineering so the construction itself will be taken care of. Since last year, we've been on the look out for a lot but unfortunately there is nothing yet available for sale that would suit our requirements. We hope the lot that we have been eyeing would be up for sale this year so we can start with the construction proper. My mother volunteered to manage the tenants on our behalf so we got ourselves a property manager for free *wink*wink.
We initially wanted to start building our dream house, however, since we're now based overseas, it wouldn't be a good idea to put our money into a house which would require maintenance work and property tax on a regular basis but will be used only once a year (during our vacay) or not even once since we will not be going to Ph yearly. So we decided to put up apartments instead which will provide us additional income at the same time appreciate in value (at least for the lot). I have been reading a lot of self-help books before and I can easily recognize an asset vs. liability. And those assets that appreciates in value than those that are not. It's very easy to buy and say that this is an "investment", I usually say that to justify major purchases while in truth its not since its not helping us increase our bottom line. But now I am more mature in managing our finances.
Real Estate. I lean towards accumulating house and lots. But location is a tricky part. Its easy to buy one but if its in Cavite or the likes, I don't think it would be a wise choice. Likewise, buying in cash would be best as to avoid interest from mortgages and it would give us more elbow room to negotiate the price.
Vehicle. I don't like expensive vehicles as this depreciate over time, we just opted for a vehicle that would suit the family needs. Nothing fancy, just a reliable mid SUV. And I made sure hubby and I are on the same page on this one.
Jewelries. I don't like custom jewelries or designer accessories, I like gold and diamonds as these appreciate over time.
Bags. I like designer bags over regular bags, relatively expensive but they tend to appreciate in value. Did you know that Chanel bags prices increase by 25% yearly or in 2 years? And LV increases atleast 2x a year. You can't easily sell a regular bag, not even at 50% off its price tag but a Chanel or LV will be sold higher than what you paid for it, no doubt about that. But its not all the same for other designer bags, usually those that goes on sale like Balenciaga, Gucci, YSL, Goyard are sold lesser than you bought them (except for Gucci's Sukey, Balenciaga's City). So I limit my purchases to those LV and Chanel only as much as I could unless the bag is a gift from my dear hubby. Well, all in all, the resale value depends on how well you use it. So I make sure that I take care of all of my bags. But for me, I don't go for 2nd hand bags, or anything 2nd hand. I don't like things with history. I think it has something to do with a Kris Aquino movie that lingered on my mind hehe.
Shopping. I usually buy during sale season and I keep in my closet so if there are occasions that calls for a gift, I just get from my stash. That goes also for grocery items that expiration date is not so soon, I usually buy in bulk or in big sizes as its cheaper.
Vacation. Not like others, I like going on vacation regularly, I don't believe that we need to push this back during our retirement age. Because I will not be able to enjoy it as much as now since I will be too old to climb,walk and eat my hearts out. And airfare as well as hotel accommodation increases every year with the inflation rate factored in, its not really practical to let the vacation money sitting at the bank until we reach old age.
For me its about having a BALANCE LIFE.
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