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Early Retirement Planning Guide for OFWs

19 August 2022
Early Retirement Planning Guide for OFWs

It's no wonder that Overseas Filipino Workers are referred to as the modern day heroes because of the tremendous sacrifices they make by leaving their families to work abroad. To provide a better life for their families back home, Overseas Filipino Workers (OFWs) are willing to sacrifice a lot, including spending long periods of time away from family and friends.

 

Despite sending billions of dollars back to the Philippines every year, OFWs seldom get to save and invest their own money since it goes directly to the food and everyday usage of their family.

 

There is no "too early" to start saving for retirement if you are an OFW, whether you have just started working overseas or have been doing so for a few years. Many people who work abroad do so in the hopes of eventually returning home to be with loved ones permanently and financially secure.

 

Some family members may still rely on you after you've left the workforce, or you may want to keep from placing an undue financial burden on your children after you've left it. The day will come when you need to draw on your money. With forethought and investment, you may convert these money into a secure stream of income for the rest of your life and leave a lasting legacy.

 

How, therefore, can an overseas worker build up sufficient savings to feel safe about their future? Here are some of the steps that you can follow:

 

Step 1. Establish your long-term objectives

 

Consider the possibility that you may lose your work due to circumstances beyond your control, such as a layoff or an unexpected illness. You may get closer to your financial goals if you define goals that are both detailed and realistic, and then use those goals as a compass to direct your decision-making. These objectives may pertain to any aspect of your life, including your professional endeavors, commercial enterprises, family matters, and private pursuits.

 

Knowing your long-term goals can help keep you focused and prevent you from wasting money on short-term pleasures. Although it is enjoyable to enjoy the now, it is also good to put some thought into your future and the future of your loved ones.

 

Step 2. Share your plans with the family

 

Get your family involved when planning for the future. You shouldn't let your loved ones back home waste the money you give them simply because you're making more money. In order to convince your loved ones that your motivation for leaving goes beyond financial concerns, it is essential that you tell your plans to them. They'll have more of an understanding of the circumstance and more sympathy for your plight, both of which will help you financially.

 

This may help relieve some of the pressure and allow them to better plan for the financial aid you give. Involving them in your ambitions increases the likelihood that they will be able to assist you in achieving your goals rather than frivolously spending your remittances.

 

Step 3. Create a savings account for your retirement fund or emergencies in proportion to your income.

 

It's human nature to want to show your appreciation for those who have supported you by lavishing them with presents and experiences now that you're making so much more money. It's possible that you're sending them all of your money rather than keeping any for yourself. As an OFW, your primary duty is to send money home to support your family, but you should still save some of your own money.

 

You don't want to put in long hours at a job abroad and return home broke, so start putting money away for retirement expenses right away.

 

Medical bills, job loss, and necessary home repairs are just some of the unforeseen costs that may really put a dent in your bank account and financial security if you don't have an emergency fund set up aside from your regular savings account. Most professionals advise having three to six months of living costs set aside in an emergency fund. It's crucial to have a safety net of save money other than just your regular savings accounts to catch you in case of an emergency since it may safeguard you from going far into debt.

 

Step 4. Achieve financial security through investments

 

Discover the secrets of having your money work for you rather than against you and secure your family's future and financial goals. Aside from learning and using fundamental money management techniques and cash benefit like budgeting and saving, financial literacy also includes the ability to make informed investment choices. You may diversify your portfolio by investing in mutual funds, equities, index funds, or bonds, among other options.

 

The purchase of real estate is another option for OFWs looking to invest and reap the benefits of passive income.

 

There are several ways in which real estate might benefit you in your golden years. You may buy a house, make improvements, and then sell it for a profit, or you can buy a commercial space and use it to launch a new company.

 

Also, one of the best strategies is to enter into property ownership. Home purchase and successful mortgage payoff are both excellent steps to achieve financial security in your golden years. Inflation will likely lead to increased housing costs and land value in the future, but if you purchase a property today, you may avoid that burden. The right home in the right neighborhood may be a great wealth-building investment, both in the now and the future, as a rental or potential resale.

 

Investing your current savings in Lumina Homes' real estate property

 

If you want to maximize the return on your investment property, don't forget the significance of location.

 

Good thing that property developers like Lumina Homes built their communities in key cities and municipalities all over the country, giving your hard-earned money's worth the value that you deserve.

 

Lumina Homes' house and lot package for sale has proximity to major thoroughfares and highways, schools and universities, medical facilities, commercial hubs, local public markets, and transport terminal-- providing you all the things that you need just a couple of minutes from home.

 

On top of that, buying a house and lot from Lumina Homes makes it a great passive income for you since our communities are also located near landmarks and tourist spots, creating your brand new home with the potential for vacation or rental space.

 

To check out our lists of projects nationwide, you can visit our Properties section page on this website. Start your retirement plan today and make your home reservations now!

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