6 Money Habits Overseas Workers Need to Adopt for a Secure Retirement
As an OFW, the desire to enjoy a comfortable and tranquil retirement will always remain. But this need not remain a distant possibility. By committing to excellent financial practices, you can begin earning and saving to cover your requirements during retirement and beyond.
Remember that the appropriate habits can help you achieve your goals and become the person you want to be. To obtain financial independence and happiness in retirement, follow these steps:
Regarding Saving: Track Your Expenses
You will know where your money goes if you keep track of your expenses. It compels you to examine your finances and identify any spending problems. Likewise, tracking your expenses motivates you to adhere to a budget. Both are essential if you are also saving for a costly buy.
Regarding Saving: Automatic Transfers
There is a bigger chance of maintaining a habit if it is simple to perform. Therefore, each time you earn a paycheck, you should consider transferring funds to your savings account automatically. It is a low-effort method for prioritizing savings and meeting monthly or annual financial objectives.
On Spending: Live a Frugal Lifestyle
If your surrounding is tailored to this particular aim, you can live within your means. Consequently, you may wish to explore residing in the province, where living costs are lower than in urbanized areas.
Spending: Be a Wise Spender/Shopper
You may shop mindfully regularly if you know your needs and wants. Examining your current financial capacity can help you determine if you need to purchase additional items. Other strategies to become a thoughtful shopper include creating a shopping list (and adhering to it!) and allocating a monthly budget for shopping. Spending ceases when there are no more funds available.
Regarding Investments: Safeguard your money with low-risk investments
Start small and gradually raise your investments as your income grows. This requires prioritizing low-risk assets, such as foreclosed properties. Some of the ideal options are:
- A home and land that can be renovated and resold.
- Large home with additional rentable rooms.
- A contemporary home that can be passed on to relatives.
- A residence with a garage that can be transformed into a commercial space.
When investing in real estate, consider that tourism spots are also worth considering. Short- and long-term rentals can create passive income from the homes in this area. Today, many vacationers favor rental properties due to their price and suburban atmosphere.
Regarding Investing: Evaluate Your Investment Portfolio
If your financial objectives and risk tolerance change, you should reevaluate your investment strategy. Serious OFW investors do not place all of their funds in one area. Therefore, if they choose to invest in real estate, they may also do so through real estate investment trusts (REITs) or money market instruments.
Obviously, there are no absolute rules for investing. If you choose fewer risks and dependable income sources, foreclosed properties continue to be among the top investment opportunities. When you are ready to make a purchase, you may require the following documents:
- Notarized Special Power of Attorney with specific property details (should be consularized if the buyer is abroad)
- Attorney-In-Fact Information Sheet (if the buyer is abroad)
- Proof of Remittance
While all the aforementioned behaviors are essential for financial stability, investing has the greatest impact. Explore your options for rental properties here.