It is true that overseas Filipino workers (OFWs) earn more than what they would have received if they worked for the same job, for the same position in the Philippines. Sadly, while many OFWs live better lives and provide their families a better future, a lot also end up deep in debt and have no savings despite working abroad for many years!
If you are among those who are planning to work abroad or have long been working away from home but don’t have savings yet, try these payday tips for you to save money for the rainy days.
Make Saving a Habit
With so many things you can buy for much cheaper prices at malls near where you work, it is easy to understand why many OFWs often get tempted to splurge and spend all their money shopping. While there is nothing wrong with going shopping (it’s your money, after all!), you have to make it a habit to save first.
Saving 20% of your salary is ideal but if that is a bit too much for you, start with any amount you can afford – whether that is Php500 per payday or 10% of your wages.
Pay Your Bills on Time
You should also make it a habit to pay your bills on time. One missed bill could mean a surcharge. Worse, if the bills pile up, you might end up having a hard time paying them all.
Pay Your Loans and Debts
It is tempting to always shop on credit, knowing that credit cards give you rewards for spending but you might end up deeper in debt with those cards – not to mention the loans and debts you incurred through other channels.
So, before you splurge on the many exciting stuff you find at nearby malls, make sure you pay off all those loans and debts first.
Allocate Money for Emergency Funds
Pinoys have this ‘bahala na’ attitude that fits our happy-go-luck attitude. We leave everything up to God, even emergency situations. Sadly, this often leads to many people, including OFWs, deeper in debt because they have to take a new loan to pay for the emergency.
So, aside from paying off your debts and starting a savings account, build your emergency fund.
Invest on Health and Life Insurance
Indeed, life is unpredictable and things could happen unexpectedly. Make sure you and your family are protected and have funds to cover these situations by investing in health and life insurance. Just make sure to only get the plan you can afford to pay, of course, because insurance plans are only usable and in effect as long as you are up to date with your payments.