September 2011 Developments

As I promised before, I’ll continue with my monthly updates to track my developments. This is one of the main reasons why this blog has been created before. That is  for me to know where I am now to assess myself on my progress.

2 years and 4 months have passed since I had the last update on May 2009. I became very busy with online activities as this blog opened up several opportunities to me that requires focus and extra time. That is on top of my regular day job.

Unfortunately, it all ended last June 2011 when Google became strict. It drastically lie lowed down since then. Nevertheless, within that period, I’m still happy that I made some virtual assets to generate passive income for me. Now, that’s what you call assets.

So here’s the update for the month that just passed:

Cash – Cash was up 3.8%. Foreign exchange rate conversion from USD to PHP went up by 3.4% month-on-month from 42.28 to 43.72. Monthly online income as well as a portion of my salary came in. In addition, payment for my article on Good House Keeping also came in. As much as possible, you need to have multiple sources of income.

Investments – September 2011 was the month when I became active in investments once again. I opened a Special Deposit Account for my emergency fund. I also  redeemed my investments in BPI Equity Fund UITF that was invested since 2008. It gained 27.04% after 3 years. Good thing I was able to redeem before the stock market drastically went down.

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Days after redemption, I reinvested the proceeds to BPI Odyssey Funds particularly in the Philippine High Conviction Equity Fund. From time to time, I’m adding investments here as I see the stock market goes down to take advantage of the peso-cost averaging. As the month of September ended, it’s currently down 6.27%.

To give you an update on what’s keeping the stock market down, Greece is in the brink of declaring bankruptcy and people are having fears of another possible recession if that happens. If Greece defaults, Greek bonds held by a lot of countries and banks would be written off. It would have a negative domino effect on banks and businesses. Banks could encounter bank runs as liquidity falters. Businesses would be affected. Ultimately, the whole economy would suffer. This situation is also what keeps the Euro currency down and the dollar currency up as investors flee to safe haven currencies. Right now, the European Union is organizing plans for a bailout of Greece which would be decided before October ends. We’ll see what will happen during the next few weeks. In the mean time, I will be on the look out to monitor the stock market. If it went down drastically, I would add additional investment to Odyssey Funds.

I still have my investments on Sun Life Equity Mutual Fund and Metro Equity Fund which are invested in 2006 and 2007, respectively. Although they just involve minimum amounts, the month ended with an overall gain of 47.42% and 19.59%, respectively. As they are equity funds, they are also both invested mainly in the stock market.

Expenses – Typical monthly expenses for me involves payment of my credit card bills, food and transportation expenses, and entertainment expenses such as casual dining out and watching movies. I also pledged to give a monthly allowance to my mom and to give to church every Sunday when we hear mass.

All in all, the month ended with a portfolio gain of 3.3% as compared to August. Thank you Lord for another month of blessings.

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