OFW life is never easy. Despite earning more (and in dollars too!) and having an opportunity to live and work abroad, you will long for your family and always willing to take the first flight back to the Philippines. At the end of the day, you still want to go back to the country and be with your family.
Unfortunately, it’s not that easy. You might not even consider retirement and willing to work for as long as you can.
Here’s the thing: you can’t work forever. At a certain point in your life, you need to slow down and relax. Before that day comes, make sure you are able to attain these financial milestones:
Milestone No. 1: An emergency fund that could sustain you in times of need.
Emergency situations – flood, fire, medical surgery, or typhoon – are everywhere and most of the time, these situations will surprise you. Even if you have pension to sustain you, it won’t hurt if you have a fund that could help you last for up to six months. This all-cash fund must also be easily accessible to you, so you don’t have to worry about anything in case of unfortunate events.
READ: Tips on How to Put Up Your Emergency Fund
Milestone No. 2: Living a debt-free life.
Who wants to live in debt? No one, right? Apparently, debt is like a ghost that will continuously haunt you even in your sleep.
When you retire, you should be able to pay all of your financial obligations or at least set aside a specific fund for that. Keep in mind that an indication of happy retirement is being free from financial obligations. Pay as much as you can while you still can. Avoid borrowing money for the wrong reasons and when you are already close to 60 years old. Consider consolidating your debts so you’ll only worry about one once you are nearing retirement. This way, you can truly enjoy life by the time you cross 60.
Milestone No. 3: A house you can call your own.
A house is a culmination of all your sacrifices and hard work. In fact, it is one of the many reasons why you decided to seek greener pastures and work overseas because you want to make that dream home happen.
Still, a house should be an asset and not a liability by the time you retire. If you decided to buy a house with the help of housing loan, you should be able to pay the loan in full by the time you retire. Make sure that the payment method corresponds to your retirement age so that you don’t have to worry about amortization when you are in your 60s.
Milestone No. 4: A passive yet stable income.
Many people who retire experience drastic changes in their lifestyle because they don’t have steady income that could sustain them. Don’t let it happen to you. You can still live a comfortable life even if you are 65.
How will you do this? Through investments.
When is the best time to start this? Now.
If you want to retire comfortably, you need to start investing your money in facilities that will provide you a source of cash. You can try mutual funds or UITF for starters since there are fund managers who handle your account. If you are willing to take a risk, investing in stocks is another option. If you are really willing to take a bigger risk for higher return, consider opening your own business.
What are you waiting for? Start working on these goals before it’s too late.