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4 Best Ways How To Retire Early Philippines

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    Many wonder how to retire early in the Philippines when daydreaming about future events, but how can you turn this dream into reality?

    The two most significant financial liabilities for most people are rent and their food expenses. Therefore, if you are looking at how to retire early in the Philippines, then these two areas should be the main focus. For some people, their rental costs and food costs can be as high as 60-70%; therefore, if there was a way to minimize this, you are 60 to 70% closer to being able to retire financially.

    How To Retire Early In The Philippines

    1. Build Your Real Estate Portfolio

    As mentioned above, food costs and rental costs are the highest for many individuals. Thus if you can eliminate these high expenses, you can retire much earlier than you expected. One of these ways is to build a real estate portfolio.

    There are two reasons why this is beneficial for retirement in the Philippines. The first reason is that owning your real estate without a bank loan means that your physical property can save thousands each month.

    The second reason why building a real estate portfolio is beneficial for retiring early in the Philippines is that when you can build a portfolio, especially in real estate, it is a source of long-term passive income essential for early retirement.

    Real estate also has the added benefit of financial leverage. Of course, real estate always goes up and down with the market, and at certain times it is a buyers market or a seller’s market, but most often, real estate keeps its value, especially in this continuously growing world.

    2. Focus On Building Passive Income

    The next area to focus on when looking at how to retire early in the Philippines is to build a form of passive income.

    Passive income is a way of earning money every day, week, or month without your direct involvement. Some passive incomes are 100% passive such as the Stock Exchange, and other passive incomes are semi-passive such as day trading.

    Passive income is also very rewarding if you can earn passively in a high economy such as the US or Singapore.

    Earning money from a passive income in a highly developed country may give you a lot more financial income right now and in the future than earning passive income from a developing country.

    Some Filipinos have made this dream a reality and could quickly retire as their overseas income generates more than their expenses back in the Philippines. Owning income-generating assets is the key to retiring early in the Philippines.  

    3. Start A Passive Business

    Aside from building passive incomes, you may also turn to start a passive business. We have spoken about passive businesses and business opportunities here at Filipino-Wealth before, but a passive business is slightly different from any other business.

    Over the years, I have owned and managed 15 businesses, some (including this website) have been highly successful, and others have failed, but what I learned is that if you are looking to build a passive business, you need to have systems in place so that the business can run smoothly without your direct involvement.

    If your business grows to an enormous scale, you could bring in the right people to manage your business and take a step into retirement. In other words, taking a step into retiring early in the Philippines can be done through building systems.

    One of the businesses I’m currently working on is selling green tea. I have a process in place that markets the product to the customer. Then, once the customer purchases the item, there is a process to send the stock to the consumer. Finally, once stocks are low, there is a process to request a new order.

    All of the processes I have mentioned above allow me to manage my business passively. I spend approximately 20 minutes each week on this business, but the business itself earns me a part-time salary.

    To summarise, processes can be leveraged if you are looking at how to retire early in the Philippines.

    4. The 4% Rule

    The 4% Rule (also called the safe withdrawal rate/trinity study) has blown up online over the last several years. To digest, if you were to take your yearly expenses and times them by 25, this is the financial target you will need to meet.

    Once you have this financial target (1-year expences x 25), you can safely withdrawal 4%  for the rest of your life and still have enough invested to cover your future. Bear in mind that the capital from this study had been invested.

    The study covered investments such as 50% in stocks and 50% in bonds and focused mainly on the US rather than the Philippines. However, similar rules apply.

    Of course, the 4% rule has been under fire for many years, and some analysts speculate that the 4% rule may not be possible in this unsteady economy.

    Having said this mathematically speaking, if you are looking at how to retire early in the Philippines, you could theoretically analyze the annual growth of investments, take into account your age, time, and several other factors two carefully estimate how much you will need to invest in living off passive financial income for the rest of your life.

    Looking at how to retire in the Philippines is no easy question as there are so many factors that can impact. But as mentioned, rental costs and food costs are some of the most significant expenses people pay, so if there is a way that this can be slashed, retirement could be reached a lot sooner.

    How To Retire In The Philippines With No Money

    The biggest problem when retiring early in the Philippines is, of course, a financial one. Many ask how to retire early in the Philippines with no money. To retire with no money, individuals will need to meet their basic requirements, such as food, water, and shelter.

    So to retire in the Philippines with no money, an individual needs to have these needs met. Historically speaking, some have married into wealth, meaning that they do not need to work again as that partner meets their basic needs. This is one example of how to retire in the Philippines with no money, but it’s not suitable for many.

    The next option is to generate your basic requirements without the need for financial capital. Unfortunately, this is very difficult in today’s modern world as everything ( even seeds that can be used for food ) costs money.

    If you are in a position where you have no money whatsoever but still wish to retire, then offering services in return for payment or a return of your basic requirements is a method on how to retire in the Philippines with no money.

    Retire Early In The Philippines: Take Away

    As we have spoken about today, retiring early in the Philippines is not an easy task. Still, there is a mathematical likelihood of success if you place your time, energy, and money in the right areas.

    Earning money passively is going to be one of the easiest ways to retire early in the Philippines. There are ways to earn passive income assets for free which is excellent for looking at how to retire in the Philippines with no money.

    An example of this is cryptocurrency. Cryptocurrency platforms reward referral agents’ commissions for securing new members on their platforms. Thus, there is no initial cost, but it may take some time for high-volume signups.

    Alternatively, starting a business that can be run passively is a fantastic way to generate income through leverage. Leveraging your time or money is very powerful if you look at how to retire early in the Philippines.

    Whatever route you decide to take, one thing is for sure: you will need to have your bare essentials met either by producing your food and other expenses or owning assets that earn you more than your expenses.

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