OFWs brave foreign countries, thousands of miles away from their loved ones, in search of a better life, once they go home. However, saving money isn’t always as easy when you’re an OFW, but it’s not entirely impossible.
Many OFWs spend years living and working away from their families and then come home with little to no savings. In many of these cases, OFWs have to go back and spend even more years working in another country. Don’t want to go through this predicament yourself? Here are some money-saving tips that you need to remember as an OFW:
1. Manage expectations
After you’ve finalized your application with a reputable manning agency in Manila, you need to start talking to your family about how they will manage finances while you’re away. As much as possible, tell them truthfully how much money you will be making while working abroad, as well as how much you’ll be needing to survive there. In this way, your family can manage their expectations regarding how much you’ll be sending them and can plan their budget around it.
Talking about this subject with your family may be uncomfortable, but it’s a step that you have to take so that you’ll be able to put aside money while you’re there.
2. Set goals
Don’t go abroad without setting your financial goals first. What are your priorities while working there (new house, car, children’s education, etc.)? How long do you have to work abroad to achieve these goals? And more importantly, how much do you need to save so you can go back home without having to work overseas again?
3. Plan your budget
Research the cost of living in your host country, including housing, food, transportation, bills, and others. After you estimate how much you need to survive in that country, plan your family’smonthly remittanceand factor in your savings. Ideally, your savings should be 20% of your monthly income, at least.
4. Keep a separate savings account
Open a savings account in your host country or in the Philippines, wherein you can directly deposit your savings for each month. Make it a habit to set aside savings as soon as you get your paycheck. By doing this, you can learn how to treat your savings as an expense instead of an afterthought.
5. Look for investments
Your money won’t keep up with the inflation rate if you keep all of it in a low-interest savings account.Considerinvestinga part of your savings into stocks, mutual funds, or assets like properties and vehicles. You can also consider starting a business in the Philippines that will help you bring in more income each month.
6. Avoid splurging
There’s nothing wrong with spending your hard-earned money on the things that you and your family want, but be sure to stay on track with your financial goals. Avoid splurging on “pasalubong” that doesn’t fit your budget or spending like a millionaire whenever you come home to the Philippines. The simpler you live your life both abroad and at home, the more money you will have in your savings account.
Being an OFW can be an extremely difficult situation and because of this, saving money should be a priority if you want to come home early. While saving money is not an easy thing to do when you’re an OFW, these tips should help you ease into the habit.
