How do we empower our Overseas Filipino Workers (OFWs) to come home financially prepared? Let’s start with OFW saving tips.
There are some things about OFW money management that should be learned early on, whether you’re a first-time OFW or a seasoned worker abroad.
These OFW savings tips will set the course toward planning, saving, and preparing for a financially stable future.
Set specific goals
So how does one save money as an OFW? Whether you’re single, married, or are currently the breadwinner of your family, there should always be a purpose to everything you do. Not only will this motivate you to work harder, this will also help keep your finances in order.
Start now. Set both short and long-term goals, and always return to your list or mental image of how you want your future to look like.
Say you want to save up for your next trip back home and take your family on a beach vacation. One OFW saving tip is to set aside at least 5% of your income for it.
Want to buy your own home in the future? Break the cycle of OFW money problems by maintaining the discipline to follow through your savings plans.
Make smart choices on how to manage your money
First-time OFWs should know that it’s very important that they choose a legitimate and safe money remittance channel.
There are a variety of OFW remittance options to choose from, such as bank-to-bank transfers, traditional money remittance channels, and online money transfer.
In terms of investing money, do your own research and see which ones would deliver lower risks.
Financial experts would always advise against putting all your eggs in one basket. As a beginner, your safest bet would be to put some of your savings in a mutual fund.
This way, you’ll get to learn from a professional money manager and know where your money is going and set your expectations regarding this type of investment.
And if you’ve done enough preparations, you can start your own business. Anything to expand your source of income and have a better cushion in the event of an emergency.
Prepare for future expenses
- Do you have a certain timeline as to when you’ll retire from being an OFW?
- Have you laid out your kids’ education and know exactly how much to save for college?
- How much are you setting aside for emergency expenses?
For most OFWs, these are some of the toughest questions that need to be asked early on. No matter how stable your job abroad is now, you should always have a cushion in case of emergency.
Having the discipline to follow your budget and focus on your goals will help you attain your financial freedom.
Who knows? You might get to go home with your family earlier than expected because you’ve saved more money than you’d originally planned to start a business. It’s true what they say, it’s not really about how much you earn, but how much you save.