Source: http://blogs.wsj.com/

Children are not a source of Retirement Money

Am I right in thinking that most Pinoy children are often the source of income of retired parents?

You may argue that children are obliged to take care of their parents when they reach retirement.

After all, they took a lot of sacrifices to care of us when we were young and also made sure that we finish our studies.

I get that. Those are all out of the question. What I want to point out is our parents’ failure to have proper retirement planning.

Investopedia defines Retirement Planning as:

The process of determining retirement income goals and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program and managing assets. Future cash flows are estimated to determine if the retirement income goal will be achieved. 

Let’s discuss retirement planning on another post because it’s a whole other topic altogether.

Now, I am not here to rant about how our parents should have planned for their retirement.

I am here to reach out and talk to you.

Let’s break this cycle

Yes, we can break this cycle on our generation.

Our generation who has the means to do research. Our generation who has the access to vast information on the internet. Our generation who has the capacity to learn more and more interesting things.

Our generation who can commit to being good stewards of our God-given gifts.

I want you to take control of your personal finances early.

Read good books about personal finance. If you contact me, I can personally recommend some books that can get you started. To start you off,I am giving you a free personal finance ebook here.

Attend seminars about how you can manage your money or how you should invest.

Get a mentor. As a professional Financial Planner and Financial Literacy advocate, I can help you get started with a personal financial plan. Book a free 1-on-1 consultation with me today.

Live below your means. Cut that extra credit card. Pay your monthly bills in full, every month. No, you don’t need that shiny new gadget. You don’t need that new ultra mega hyper wide angle lens action camera. Invest that money instead.

Delay gratification. Losers plan for today. Winners plan for their lives.

Write down your financial goals. All your decisions about money will be based on these goals that you set. What lifestyle do you want to have for the rest of your life? How much money do you need when you retire? Here’s a quick guide for you.

Hang out with friends that are more successful than you and hang out with those who have done what you would like to do. Join clubs. Play sports. Meet people.

 You are the average of the five people you spend the most time with. ~Jim Rohn

Keep learning. Use the Metro Manila traffic to your advantage by bringing along good books, ebooks and audio books with you. (I’m referring to non-fiction books, by the way)

Start early and invest early. The stock market is not just for rich people. You can open an account for as low as PhP5,000. If that’s not your cup of tea, go ahead and let others manage your money by opening a Mutual Fund account. Start your own business or become part of an already proven and trusted business.

Manage your risk. Young people think they are immortal. Bad news. They’re not. Everyone needs some sort of life insurance during their lifetimes.

Become deaf. During your journey, some people will put you down or tag you as someone who’s weird. Stay strong and don’t let them take your eyes off your goals. Don’t worry if you lose some negative friends along the way.

It will come naturally

If you take action on the above suggestions, before you know it, you have attracted people, events and circumstances that will help you break the cycle.

Continue on supporting your parents. Continue on dreaming and reaching your goals. Continue on improving yourself.

If you want to support and become part of this movement, please comment “Let’s break the cycle!” on the comment form near the bottom of this page.

By doing so, I will treat it as your personal commitment to the world that you will break the cycle of relying on your children during your retirement. Congratulations in advance!