Money hacks for OFWs
Kyle John Antonio in Tips and Advices
Oct 04, 2019 • 3 min Read
Overseas Filipino workers (OFW) chose to leave their families in pursuit of better opportunities outside the country. They hope that after years of working abroad, they will be able to go home with enough savings, but the sad truth is that many of them are not successful. Others end up drowned in debt. Only few are enjoying the fruits of their hard-earned labor.
Clearly, many OFWs—particularly unskilled workers and laborers—lack financial literacy. According to Central Bank’s 2013 consumer expectations poll, less than half of OFW households in the country are allocating remittances to savings and most of them do not apportion a single peso for investment. Wise investments and thinking are therefore important.
Below are money-saving hacks for our OFWs:
- SPEND WISELY. The 50-30-20 rule is recognized as one of the most effective methods in spending income wisely. It states that 50% of income should be spent on your family’s daily needs, 30% for leisure related matters such as family outings and birthday celebrations while the 20% goes to your savings. Another method is the 50-20-20-10 rule where monthly income goes to daily expenses, leisure, savings, and investment, respectively.
- SET YOUR NEEDS. Things you need are different from things you want. Assess, evaluate, and separate the needs from your wants. You want enough food on your table and you do not need to eat out every night. You want decent clothes to wear to the office or to to a meetup with friends and you do not need to buy new clothes every week. Learn to differentiate.
- SIDE BUSINESS. No matter how financially rewarding your fulltime job abroad may be, finding a side business will help buff up your savings. There are many ways of earning extra money nowadays specially that online businesses are trending. You can resell your stuff or even make your own business online. Freelancing jobs—online teaching, writing, video-editing, graphic designing—are also popular. Having a side hustle gives you budget security, reassurance and diversity of income.
- SET YOUR GOALS. Short-term goals include everyday expenses such as food and rent. Long-term goals take more time to realize like your child’s college fund or a future business. Set a realistic plan based on your salary and monthly expenses. How do you see yourself in five or 10 years? Once you come up with a concrete objective, going back home with your dream stable life will be possible. Your plans depend on your goals and play a most important role in your success. Formulate your goals correctly.
- SAVE UP AND OPEN A BANK ACCOUNT. There are several reasons why many OFWs don’t have bank accounts: location, necessity and difficulty. They should overcome these petty reasons for not opening an account. If there’s a will, there’s a way.
- STAY CLEAN. Vices rob you of your future. When you are spending a large amount of money on something addictive—gambling, smoking, drinking or shopping—it is a vice. Spending is not a stress reliever to reduce homesickness.
A meaningful and successful life is never dependent on how much one has spent but on how much one has earned. Start thinking about your future.
