Retirement and brighter future are main focus of most OFWs . I had this conversation with a retired OFW while waiting for our flights to Rome. She started telling her life story and how she achieved the comfortable retirement life.
I got this 5 important financial principles from our conversation;
First, spend less than you earn. Always keep something for yourself. Some of her friends spend money for branded clothes and attended every party possible while she keeps her lifestyle at minimal spending. She quote, " at my retirement I can spend money for whatever I want and reap the benefits of my hardships, living in 3 floor mansion and I'm travelling as a tour guide for my grand sons and daughters in US and Europe.
Second, build a pension fund. She's receiving pension from Italian and Philippine government. She worked as a public teacher for 20 years in the Phils while COLF in Italy for 30 years. She got a separate insurance funds for her health and retirement savings account.
Third, limit your borrowing. Don't borrow money without a reason and urgency. You can retire easily if there is no debts that will bother you every night.
Fourth, think twice and research before making the investments. She mentioned that she invested on her daughter's remittance centre. Don't invest on a business without knowledge on the field.
Fifth, important things cannot be bought or sold. Always keep a quality time for your families and friends. Don't trade off money for family time.
There are different paths to retirement but pick the one that fits your risk and investment style.
Jonathan Ruiz CPA