As an OFW, you want to provide enough for your family’s needs, while at the same time set aside an amount for a comfortable retirement in the future.
Why think about retirement as early as now? Like any job, your time as an OFW is short, and eventually you won’t be able to do the work you’re doing now. Also, though it’s in our culture for children to provide for their aging parents, having a solid retirement plan frees your children from this financial obligation so that they can be free to achieve their own financial goals. Preparing for your own retirement also allows you to spend more time with your family once you’ve settled back home for good, making up for all those times you were away.
To everyone who wants to have a better standard of living after retirement, here are some of the tips to keep in mind.
Start as early as possible. Time is on your side, especially when you’re young. While you’re at the peak of your working years, take advantage of your earning potential. Earning more shouldn’t mean having more to spend. Instead, you should see this as an opportunity to save and invest more and hopefully take care of your future self. Saving is undoubtedly a hard thing to do, but once you get the hang of it before spending, it will be easier as time goes by.
Learn other forms of investments. Typically, OFWs preparing for retirement will invest in assets like real estate, which they will use either to settle in during their twilight years or use as a source of passive income in the form of rent. Yet these investments will always come with risks, as calamities, which are common in the Philippines, investors can lose their hard-earned money. Echoing the advice of financial gurus, don’t put all your eggs in one basket. You can try investing an amount on the stock market, and see your hard-earned money grow in the future. Or you can look for endowment plans that have great yields over long periods of time.
Budget your money wisely and beware of debt. It’s only typical for OFWs to send most, if not all, of their hard-earned money to the family they left back home. But this martyr mentality will benefit you in the future. For every paycheck, make sure to set aside enough money for yourself to put into your savings. Also, if you’re one of the many OFWs who have left home under a lot of debt, make sure to pay off those with the highest interest. Beware of accruing more debt, as is the case with credit cards, as the interest in paying them off is actually money lost.
Set goals. Finally, you also need to set yourself long-term goals that can help and inspire you into achieving early retirement. Once you’ve set realistic and achievable goals, you can look for other forms of investment vehicles to help you achieve them as early as possible.
Your efforts to support your family by making the sacrifice of being away from them cannot be understated, and you deserve to lead a happy life after working all these years. Following these tips can make your retirement life easier and more comfortable, simply because you’ve earned it.
What are your thoughts about early retirement? Share them with us in the comments section below.