Retire Rich

In year 2000 as the website creation becomes easier and affordable, all you need is to blog. Many personal blogs gain popularity at the time and became a full blown website that have diverse functionality. In 2010, all you need is a YouTube channel.

During these almost two years na hindi ako nag trade, I was very busy then naman on some other things like setting up my small business, travelling to two countries and then reading again a lot of books about real estate in preparation to my plan to go home for good to the Philippines maybe in two to three years time. 

I also realized lately, that it is not just really important to start saving and then investing at an early age, but it should be consistently done also. Although, I started investing in 2015, I felt at that time that I'm to late to start because I'm already 38 at that time and had been an OFW for already 9 years at that time. Pero wala pa din ipon at that time. Anyway, if I did save and invest consistently even in 2015 kahit 5,000 pesos a month, that 11 years ago, and that's roughly 120 months. So, meron na sana akong Php 600,000. At a rate of 6 percent per year compounded the amount will probably be as what is shown below table.

It shows USD in the table for computing purposes lang naman yan dahil yong online calculator ay USD yong kanyang unit. Obviously, peso lang po ang ibig kung sabihin nyan. 

So, with all those erratic savings and investing from 2015 kahit papano meron pa rin namang naipon kahit papano. There's a lot of factor naman kasi as to why we cant consistently do it. Andiyan yong what if I die tomorrow? hahaha eh di si kumpare ang magbibilang ng naipon hahaha! Then there's some disruption because of changing financial circumstance. When your kids start going to college. Malamang walang matitira sa sahod. 

Well, kahit ano pa man daw changes ng financial circumstance, you should not stop saving and investing. For as long as you are working and earning, you must set aside for your future self. Because time will never go back once spent. Even a small amount goes a long way. To all OFWs, we will not be working all the time. Time will come we will get old and our body will tell us to stop, or our jobs will no longer need us, or our boss no longer need us. 

Last week, akala ko katapusan na ng working career ko. As an HR Officer, I knew the termination script by heart: the gentle, measured tone, the sliding of the termination order, the obligatory offering of a tissue. I was handling exit interviews, and guiding others through the worst days of their professional lives. 

It was a Tuesday afternoon when my desk phone blinked. It was my HR Director. 

"Could you step into my office for a moment?" 

When I walked in, the glass blinds were drawn tight. A single, folder sat perfectly centered on his desk. I felt a sudden, cold weight drop into my stomach. I knew the choreography of this room far too well. 

The HR Director sat with his hands clasped, wearing the exact same mask of practiced corporate empathy I usually wore myself. 

"Remind me," he began, his voice softly modulated. 

"How many years have you been with us now?" 

"Nine years and ten months," I replied, forcing my voice to stay steady. 

"Just two months shy of the ten-year milestone.

" He didn’t smile. He looked down at the folder, then back up at me. 

"You know the market has been unforgiving lately. The management has made some difficult decisions regarding our operational costs. I'm afraid the company is restructuring. We're downsizing the department, and your position is being eliminated." 

The clinical language washed over me, but the reality hit like a physical blow. Downsizing. Panic immediately clawed at my chest. I'm forty-eight years old. I am nowhere near ready to retire. My mind raced through a terrifying inventory of my finances. My savings account is a shallow puddle, continually drained over the years by a staggering tuition fees for my kids.

I never had the surplus income to build a diverse investment portfolio or a safety net. I had bet everything on this job, banking on the stability of my salary and the assumption that I would ride it out until a quiet, properly funded retirement at least at fifty-five. I knew the termination policy. At ten years, employees were entitled to a significantly larger, vested termination package. If it is resignation, tt nine years and ten months, I would receive the standard minimum. 

"Sir," I started, my voice cracking as the armor of my profession fell away. 

"I don't have a backup plan. I don't have the savings for this." 

He said no way "Rey we are  not terminating you. We called you here to tell you that you have to move to the first floor and take my old office there. Your office at the ground floor will be given to the newly hired that will join next week" 

A sigh of relief, my boss was just joking at me. I left his office still can't believe what just happened. I imagined what if it is true? Anong gagawin ko? Napa-isip ako ng malalim that night. I promised to myself that I should be ready and be consistent in saving and investing from now until my last working day. Hoping that whatever I saved, I will invest in a security that will make my money secured and the same time that money will work for me replacing my income to pay the cost of my living. Pero paano? Samahan ninyo akong hanapin ang sagot sa tanong na yan sa mga susunod ko pang mga blog post. Stay tuned.  

Review muna ng mga na screen na stocks at sa mga na trade na din. So, far maganda naman ang ipinakita ng stocks na na screen compared sa general market natin, yong PSEI bagsak grabi. 

I go back to virtual trading. It's been almost a year that I was not able to trade stocks. So I need to practice para naman hindi masunog. 

In this video I discussed about the reasons why I stopped stocks trading for almost one year, my plan to go back to stocks trading, my business acquisition and other things.  

As an Overseas Filipino Worker (OFW), managing a business remotely is a unique challenge. Being physically absent from the day-to-day operations in the Philippines can present hurdles, especially in ensuring that the business runs smoothly and honestly. Based on my personal experience, I want to share a common challenge I've faced and the solutions I implemented to address it.

How Do You Know if You Hired a Trustworthy Employee?

In my case, I realized there was an issue with dishonesty when I noticed discrepancies between sales reports and inventory. I conducted a surprise cycle count (inventory check) on a specific item, and that’s when I discovered the inconsistency.

Fortunately, I had implemented a solid inventory and sales reporting system (QuickBooks) from the very beginning of the business. This system allowed me to detect the issue early on, as there was a clear discrepancy between the reported sales and the actual inventory.
Solutions Implemented

After discovering the issue, I took immediate action:

1. Memo and Warning: I issued a formal memo to warn the employee involved about the incident.
2. Random Cycle Counts: To prevent future dishonesty, I established a procedure for conducting random cycle counts, in addition to the regular monthly inventory. This random check system acted as a deterrent, making it clear to employees that there were protocols in place to catch any irregularities.

By implementing these measures, I ensured that my employees knew that the business had a strong system in place to track inventory and sales. This helped discourage any future dishonest actions.
Conclusion: The Importance of a Solid System

In closing, no matter how small your business is, having a reliable system to track inventory, sales, and employee performance is essential. This is particularly important when you’re managing the business remotely, as it helps ensure transparency and accountability even when you're not physically present.

For fellow OFWs managing businesses from afar, my advice is to invest in solid processes and systems. Not only will this help in detecting issues early on, but it also sends a clear message to your employees that you’re serious about running a transparent and efficient business.

From the beginning of my working career---that was right after graduation from college in 1997 up until 2015, I found myself trapped in a cycle familiar to many: living paycheck to paycheck. The same thing happened even though I was able to work overseas as an OFW in 2006 but still the cycle continues. My situation even get worse while working as an OFW. I came to a point wherein I sold my blood at a blood bank for straight six months (literally blood... the white blood cells or the leukocytes). The constant stress of not knowing if I could make ends meet weighed heavily on me. I knew I needed a change, and that year, I took the first step on a journey that would eventually lead to financial stability.

It all started with a free seminar on financial literacy. I'm forever grateful to OFSI and its team. The seminar opened my eyes to the possibilities of managing money wisely and growing it through investments. It was a turning point in my life. The knowledge I gained motivated me to take action immediately.

One of the key takeaways from the seminar was the importance of saving and investing. I knew I had to start small, given my limited income at the time. So, I committed to saving as low as 1,000 pesos a month from my salary. It wasn't much, but it was a start. The key was consistency. Every month, without fail, I set aside that money and invested it in the stock market.

My initial foray into the stock market was cautious. I knew little about how it worked, but I was determined to learn. As I invested, I simultaneously immersed myself in studying investing and stock trading. I spent countless hours reading books, watching tutorials, and following market trends. This self-education not only helped me make better investment decisions but also gave me the confidence to stay the course, even when the market was volatile. I even get my hands into stocks trading and that is well documented on my YouTube channel and some of the videos I made were also shared on this blog.

As my knowledge of investing grew, so did my ambition. I realized that financial literacy wasn’t just about investing; it was about understanding all aspects of money management. To broaden my skill set, I started studying business accounting. This knowledge was crucial, as it provided me with the foundation I needed to think beyond just investing in stocks. The book I can strongly recommend to read before you start your own business especially if you are not an accountant is "Finance for Non-financial Managers". It sparked an interest in entrepreneurship, and I began to explore the idea of starting my own business.

By 2023, I felt ready to take the next big step in my financial journey. With the savings I had accumulated over the years, plus the capital from my stocks stocks trading portfolio, and the knowledge I had gained, I invested in a startup business in the motorcycle parts industry. It was a calculated risk, but I believed in the potential of the market and my ability to run the business effectively. 

Running a business brought its own set of challenges, but the financial literacy and business accounting skills I had acquired over the years proved invaluable. I was able to manage the finances of the business efficiently, make informed decisions, and navigate the ups and downs of entrepreneurship. Today, my business is thriving, and I have successfully broken free from the cycle of living paycheck to paycheck.

Looking back, the journey wasn't easy, but it was worth it. The key to my success was a combination of education, consistent saving, and calculated risks. Attending that financial literacy seminar in 2015 set me on a path of self-improvement and financial empowerment. By taking small, consistent steps and continually learning, I was able to transform my financial situation and achieve a level of stability I once thought was out of reach. 

My story is a testament to the power of financial literacy and perseverance. No matter how small you start, with the right knowledge and mindset, you can break free from financial limitations and build a brighter future. Break the cycle.

Today, I challenged myself to exercise daily for one month. The exercise routine is very simple. Five regular push-ups, five wide push-ups, five diamond push-ups, 10 burpees, 10 jump squats. This is composed of 2 sets. I'm doing this routine in the morning after getting up from bed and another one after I arrived at home from work.

Forget about the background on the below picture. I edited in Canva to look nice. The routine doesn't need any equipment. No reason to go to gym. I just deleted the background because my room is disgusting. 

Why I'm doing this?

At age 47, I felt that I really slowed down. Not as sharp as before. The nature of my work requires me to sit most of the time. My posture is now molded to a chair. So, I will try to do this routine for one month hoping to build a new habit.

I went back to the basketball court also and started playing basketball to build my stamina.

On stocks trading

I intend to go back to stocks trading this coming January 2025. My trading capital was spent on the renovation of my vulcanizing shop. Hopefully, by January, I can pull out some of the profit from my shop and put it back in my trading account. Inshallah!

As a first time start up business owner, there's a ton of improvement I wanted to implement right away. But it could be overwhelming and stressful. So, I slowed down and enjoy every small details of the process. Continue stirring to create ripples and hopefully I can brew waves in the process. 

Slowing down business improvement in a startup allows me to savor each step of the journey, fostering deeper learning and creativity. By taking time to reflect, I was able to make more thoughtful decisions, reducing costly mistakes. 

This approach also encourages stronger relationships with customers and my team, as there's more focus on meaningful interactions rather than rushing growth. Enjoying the process cultivates a positive work culture and prevents burnout, ensuring sustained passion and energy. Additionally, it provides space for innovation, allowing the business to evolve naturally rather than forcing rapid changes that may not align with its core values. 

Retirement marks the end of one chapter and the beginning of another—a time to reflect on past achievements and envision new opportunities. For Overseas Filipino Workers (OFWs) returning home after years abroad, retirement presents a unique chance to reinvent oneself and contribute to the local economy. In this blog, I would like to share with you my journey as an OFW venturing into entrepreneurship by starting a vulcanizing business, utilizing my years of hard work and experience as a tool to somehow succeed in our homeland.

Well, when I said retirement, all I really meant was to stop being an OFW and return to the Philippines for good, not necessarily to stop working---but to stop being an employee. I wanted to be the boss this time and it can be done only when I run my own business. You might ask, why do I plan to retire for almost a decade now? This is because I have a lot of fears. First, I dont' know how to run a business. Second, I don't know what business to start. Third, I don't know about accounting---that's my biggest fear. I need to learn about business accounting. So, to prepare myself for these fears, which I consider as challenges. I started preparing as early as 2015, reading books about financial accounting. The book "Finance for Nonfinancial Managers" was the book that really helped me understand the basic concept of accounting. If you intend to return to the Philippines for good with your hard-earned savings money to start your own business, I recommend reading this book. This is especially true if your profession or your career as an OFW is outside the financial and accounting realm. 
Indeed, while Excel can be a useful tool for basic accounting tasks, it may not always meet the needs of more complex businesses or those seeking greater efficiency and automation. Fortunately, there are several sophisticated accounting software options available that offer a wide range of features to streamline your accounting processes and provide valuable insights into your business's financial health. Let's explore some of these advanced accounting software solutions:

QuickBooks: QuickBooks is one of the most popular accounting software options for small to medium-sized businesses. It offers a comprehensive suite of features, including invoicing, expense tracking, payroll management, inventory tracking, and financial reporting. QuickBooks also integrates with many other business applications and banking platforms, making it highly versatile and customizable to your business's needs.

Xero: Xero is another cloud-based accounting software solution known for its user-friendly interface and powerful features. It provides tools for invoicing, bank reconciliation, expense tracking, inventory management, and payroll processing. Xero also offers extensive integrations with third-party apps and services, allowing you to create a tailored accounting ecosystem that fits your business requirements.

FreshBooks: FreshBooks is an accounting software designed primarily for freelancers, service-based businesses, and small businesses. It offers features such as invoicing, time tracking, expense management, project management, and financial reporting. FreshBooks' intuitive interface and mobile app make it easy to manage your finances on the go, while its automation features help streamline repetitive tasks.

Wave: Wave is a free accounting software solution ideal for freelancers, contractors, and small businesses. It offers core accounting features such as invoicing, expense tracking, and financial reporting, as well as additional tools for payroll processing and online payments. Wave's affordability and simplicity make it a popular choice for entrepreneurs just starting with their accounting needs.

Sage Intacct: Sage Intacct is a cloud-based accounting software designed for midsize and enterprise-level businesses. It offers advanced financial management features, including multi-entity and multi-currency support, revenue recognition, project accounting, and financial consolidation. Sage Intacct's scalability and robust reporting capabilities make it suitable for growing businesses with complex accounting requirements.

These are just a few examples of the many advanced accounting software solutions available in the market today. When choosing the right accounting software for your business, consider factors such as your business size, industry, budget, integration capabilities, and specific accounting needs. It's also a good idea to take advantage of free trials or demos offered by software providers to test the usability and functionality of each solution before making a decision. 

In my case, I choose to learn QuickBooks. I practiced using QuickBooks by creating a dummy company and applied what I learned from the book "Finance for Nonfinancial Managers". In fact, I also learn to use QuickBooks to record my personal finances. 

The Vulcanizing Business

As I mentioned earlier, I have fears about starting my own business and the biggest is my fear about accounting which I ultimately learned. And the other fear is I don't know what business I'm going to start with. Some will tell you, to start with something that you are passionate about or something you are good at. That's the usual problem of the OFWs. Most of the OFW ahead of me that I know went back home for good and started doing business for the first time, hoping that it would work. However, most of them failed. This is because they did it for the first time with a business model that wasn't proven yet and they rely on the business as their major source of income. In other words sa bisaya pa, wala saligi pero maoy gikuhaan sa tanan. It is somehow bound to fail. So, I tried a different approach. I started a business while I'm still an OFW. I wanted to practice first. I wanted to run a business while Im still earning as an OFW. I think we are lucky now as we can run a business remotely with the help of the technology and Internet. We can use online CCTV as our extended eyes, ears, and voice for our business wherever it is located in the world. 

So, the fear, or shall I say the challenge to identify what business I'm going to start was answered. In January this year, our neighbor who was running a small vulcanizing shop wanted to sell his shop and all the tools available for 20,000 pesos. It was a conventional vulcanizing shop that still utilizing used oil to heat the iron pad to vulcanize the interior tubes of motorcycles and bicycles. At first, I was hesitant because I know how the hell a vulcanizing shop works and I don't know how to do it. And who will do it for me? Well, I realize that I work as an HR in a big oil and gas company in Kuwait so this is my strength,  I can head hunt someone suitable to work as my partner to act as tireman in this shop. 

What made me convinced to buy this vulcanizing shop from Rex Dalogdog is that he's been running this business for more than 10 years. So it only means that this business is working and was able to feed his family for a decade. So I grab the opportunity and this will let me start a business not from scratch but simply take over a viable running business. So I bought it and was able to hire a suitable partner for this business, So far the business has been running for more than three months now and was able to pay its own bills with a meager net income. I did not do any major renovations or purchases, I just operated it as it was and planned for renovations in the fifth month of its operation. 

I still don't know whether this business will indeed help me with my retirement so that I can ultimately go home to the Philippines for good. That still remains to be seen. What really I'm after is that I started a business and will apply what I learned and prepared over the years to an actual business. I already tried applying what I learned through a dummy business and this time I am doing it on a real business. And I am confident and comfortable doing it because the capital is not something that gets the bulk of my savings. And besides I'm not building it from scratch. Simply I just taking over a running business. So guys if you enjoyed reading this blog, continue to follow as I blog here whatever I learned running this business, I will share the challenges and the whole journey in general in this blog.

For those who follow this blog because of my stock trading content, don't worry guys I will be posting again videos or blogs about stock trading soon. Why I stopped trading is that I don't have the capital now. I utilized my trading capital for another business venture to add a diversification of my investments as I used my trading capital to buy a piece of land. Yes, I'm happy to inform you that I was able to venture into real estate thanks to my best friend Don Juan for the opportunity. I'm also willing to share the process here in this blog if you guys want to know how to buy land, its associated costs, and the processes. Thank you for bearing with me I know it's a long one. And if you come this far, thank you so much for taking the time to read. Until next time, let me know in the comments section what are your thoughts. 

As an Overseas Filipino Worker (OFW) back home we are called modern-day heroes, bravely venturing into foreign lands to provide for our families. Our sacrifices, often overlooked, shape not only our own destinies but also the futures of our loved ones. However, amidst the toil and triumphs, there comes a pivotal moment when every OFW contemplates retirement – a time to return home and reap the rewards of our hard work. Today, we delve into the journey of an OFW planning to retire, exploring the challenges, strategies, and emotions that accompany this significant transition.

Reflecting on the Journey 

As we approach the twilight of our career abroad, reflection becomes a cornerstone of our retirement planning. We reminisce about the countless days spent away from home, the challenges overcome, and the milestones achieved. Yet, amidst the nostalgia, questions linger: Have we saved enough? What does retirement look like for us? And, perhaps most importantly, what awaits us upon our return?

Financial Fortitude 

Financial preparedness stands as the bedrock of any retirement plan. As an OFW the journey towards financial independence begins long before the countdown to retirement commences. With few years left, we need to assess our savings, investments, and pension plans, seeking to optimize our resources for the years ahead. Some of us might consult with financial advisors. We should develop a budget, and explore opportunities for passive income streams, ensuring a comfortable retirement back home.

Building Bridges 

Returning home after years abroad entails more than just a change in geography – it necessitates reconnecting with loved ones, communities, and a nation transformed by time. We need to build bridges, nurture relationships from afar and lay the groundwork for a seamless transition. Invest time in strengthening familial bonds, participating in community initiatives, and reacquainting ourselves with the cultural and societal shifts awaiting our return.

Embracing Change 

Transitioning from the hustle and bustle of overseas life to the tranquility of retirement presents its own sets of challenges. We will grapple with the prospect of a slower pace, redefining our identity beyond the confines of our profession. Yet, we approach this period of change with resilience and optimism, embracing newfound hobbies, passions, and opportunities for personal growth. Whether it's pursuing entrepreneurship, engaging in volunteer work, or simply relishing the joys of family life, they find fulfillment in the richness of each moment.

As retirement beckons, we contemplate our legacy – not merely in terms of financial bequests but in the impact we've had on the lives of others. We reflect on the values instilled in our children, the lessons learned by our peers, and the contributions made to our communities, both abroad and at home. Our journey transcends borders, leaving an indelible mark on the hearts and minds of those we've touched along the way.

The road to retirement for an OFW is paved with challenges, choices, and moments of profound reflection. As we prepare to bid farewell to the life we've known abroad, embark on a new chapter filled with promise, purpose, and the enduring legacy of our journey. Though the path may be uncertain, our resolve remains unwavering – for in the heart of every OFW lies the courage to navigate change and the resilience to embrace the future with open arms.

Above is a short video I made regarding the launching of short selling (shorting) at the Philippine Stock Exchange. Subscribe to the Retire Rich channel for more follow-up videos regarding this topic.