There are approximately 10.2 million Filipinos working outside the Philippines, employed in various fields; they are collectively known as overseas Filipino workers (OFWs).
While it is true that OFWs are earning much more than their counterparts in the Philippines, a lot actually end up with no savings or retirement plan. Thus, during times of need or when they are already near retirement age, they face financial problems despite the relatively better lives they live abroad.
But it’s never too late to start saving! If you still haven’t started saving, then here are the top 5 tips to get your started.
Make a Budget and Stick to It
The first step to saving money is to make a budget – and sticking to that budget! Easier said than done, that’s for sure but by making a written budget, you will see exactly how much you can really afford to spend (and save!) each month.
Don’t Send Everything, Save First
Most OFWs send everything to their families back in the Philippines. Now, there’s nothing wrong with that, especially if you can trust your family with money and saving it for you; however, the reality is that most families lack financial literacy.
When you send them everything, you just might end up with nothing saved.
Open a Bank Account Just for Savings, Don’t Use It
To give you a better chance at saving money, you’d better open a bank account specifically for saving. If you are unable to do that in the country you are working in, make sure to open one once you get back to the Philippines.
Don’t save cash where you are – that might actually put your money (or even your life) in danger.
Avoid the Temptation of Shopping
There are so many things, cool stuff, branded items, and lots of great shopping choices outside the Philippines. In fact, there are even Filipinos, the rich ones of course, who specifically go to other countries just to shop.
While you should treat yourself from time to time, try to avoid the temptation of shopping – or you’ll end up with nothing.
Remember: Balikbayan Box and Pasalubong are Not Mandatory!
When you think of OFWs, these two things often come to mind – but you really don’t owe everyone everything. While it is great for your family and friends to enjoy these imported items, you can limit your padala so that you still have money left. Don’t spend all your money just so you can please everyone.