Tuesday, September 15, 2015

How You Could Possibly Go For An Early Retirement

Filipinos normally retire at the age of 60 to 65 years old but I am certain that given a choice, most of us would like to retire earlier than that.  Why not? Retiring early will be a dream come true for most people.  Who would not want to spend long years of their life doing things they love to do?  Perhaps going for a much needed vacation once in a while, eating out with your family, travel locally and abroad, going to movies, picking up a sport or simply following your passion while having control of your time.  This is definitely ideal, but the problem is how could we possibly achieve this?

Gaining control of your financial situation is the secret for getting an early retirement.  The first step that you have to do is to have a clear vision of what would you expect to happen during your retirement years.  We all know that retirement fund varies from person to person, that's why it is very important to figure out what do you foresee about yourself in the future. Having established this fact, you can now move on to the following steps to assure yourself of retiring early.
1.) Make A Plan 
Making a plan is very crucial to achieving this goal.  The question would normally be, "Where would you get your spending money during your retirement years?"  Will it be from a profitable business?, substantial savings? or from passive income?

You see, I've decided to go for an early retirement.  I was just in my forty's when I've decided to resign from my job abroad two years ago.  Of course, before I came up with that decision, I made a plan.  I tried to figure out what would I do back home and whether we could still comfortably live on one income from hubby.  I still have a daughter who had just started in college and expenses would be quite tough.  After careful planning, I tendered my resignation, packed my luggage and flew back home.  Before I knew it, I am already enjoying the benefits of an early retirement.

2.) Review Your Expenses

What financial experts are saying is always true. Saving money is not just on adding income but lessening your expenses as well. If you are able to lessen your unnecessary expenses, it's tantamount to saving money in the long run.  As soon as I got home from abroad, I made a "spending plan".  I reviewed our monthly budget and tried to check on where could I cut down.  This has gone far as giving up our land line subscription as I noticed that this is rarely being used anyway as all of us at home has a mobile phone.  Last time also, the house helper is the one buying foods from the wet market, so I did it this time.  I'm not saying that I don't trust our helper enough but you know, it's different when I am in total control of what we're spending.  Later on, our helper decided to go for a vacation and I never asked her to come back again.  You see, it's only me, my son and my daughter at home and they are big enough to help around the house.  Because of that decision, I was able to save nearly 10K on expenses for a house help, not to mention the savings from utilities.  It's seemed like I have instant 12K of savings per month. 

3.) Find Your Passion and Earn From It

I'm now at home enjoying the company of my children, managing the house and doing some hobbies like gardening, cooking, baking, reading and doing some arts and crafts.  Now what's next?  I lost an income from my job abroad but I am able to save some from our monthly budget for cutting unnecessary expenses.  For me not to touch my personal funds/savings and manage to still add up to it, I turned my passion into earning opportunities. I also made use of my skills to earn extra. This doesn't interfere with my early retirement since I am in control of my time and still at home most of the time.  I still enjoy life and my freedom from an eight hours corporate job.  I could watch TV and movies anytime I want and have scheduled pampering sessions at spa regularly.

4.) Diversify Your Income

Let me get to the point, It's a part of my plan to have a "passive income".  Of course, if I decide to retire early, that means freeing myself from the stress of working under a required schedule and dealing with office politics.  Maintaining a passive income is the answer to this.  You see, I've worked for more than 20 years to earn some money, it would be wise to let money work for me this time. This is why I've decided to invest on real estate which could give me monthly earnings without doing anything.  Properties I've invested into would be a part of my net worth.  This assures me and hubby of a comfortable home to stay during our old age and the rest could pay for some of our monthly expenses.  I've also managed to invest on UITF which I intend to keep invested for a longer period. Thanks to blogging, this is where I derived my UITF investment and from where I build up my "emergency fund".

Going for an early retirement is not really as hard as you can imagine, however, it requires a great amount of discipline, hard work and a strong determination to succeed.  Focusing on your goal and making it happen is hard but definitely rewarding.


  1. Right now I'm a full time mom and a SAHM, but my husband and I we're always talking about our plans for our future specially pag magretire na sya, gusto din talaga namin mag business para lagi kaming magkasama at para di na sya mag abroad, but right now there's a lot of things pa na dapat pa namin e consider masyado pang maaga for him to retire :)

  2. This is why earning a 3-door or 2-door apartment is one of my goals in life. It's a good business, and you are not required to work all day.

  3. It is really important to plan for the future because you never know what will happen. I agree with all your points and I do hope I can enjoy my senior years. :)

  4. Thanks for these very helpful tips. I'm young and I really believe that "delayed gratification" will be my key to an early retirement and a worry-free financial status in the future. :)

  5. Stable financial status is the only possible way to retire early. Well, I hope di naman super late na kami magretire ng hubby ko, I hope we can still travel and di yung sobrang uugod ugod na. hehe. This is one of the reasons why we decided he'd work abroad...

  6. I would love to go to early retirement too although I do fear of not having enough to provide for the needs of my children. I do get passive income from apartment rentals and I have also investments in stocks (although the stock market crashed waah!), but I need more push to plunge head-on to retirement hehe

  7. This is also my goal. To have my early retirement from the corporate world. Everytime we lose a househelp, I am asking God if it's a sign already. But He always send us a new househelp so maybe I should wait for the right time. Maybe we are not yet ready so we should prepare for it.

  8. Early retirement is always on our plan, but we don't really finalize or talk on how we are going to do it. Its hard! but with great determination, this things can be achieve.

  9. I too hope for early retirement if possible. Must really save up and plan for the future today.

  10. Since I just got a job I must say retiring early is everyone's dream. Just make sure that you already have plan b for your life. Save and plan is the key.

  11. Mommy and I were discussing that at the age of 40, she will leave her work and start working at home.
    I read that for your to retire, you should have the savings equivalent to 10 months of what you currently earn at work. Haaay.. kailangan talagang mag-ipon.

  12. Now I am saving for our retirement, I get insurance from Sun life

  13. This is what I'm gunning. I want to retire by the age of 35.


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