Financial saving tips every OFW must know

A lot of our OFWs spend years working abroad, earning a living to provide for their families and give them a comfortable life. But the sad reality is that they can spend years and years working in a foreign land and still come home broke and with no investments.

Don’t let this be the story of your life. You can provide for your family, pay for your own bills, and still have money to put into savings. It takes a lot of mind conditioning and discipline to be successful with this task, but it can be done. Here’s are some tips to get you on the right track.

Enroll in auto debit arrangement with your bank

When money is automatically debited from your bank account and goes straight to your savings account, it’s more efficient and more reliable. You don’t see the money, therefore, you are not tempted to withdraw and spend it.

Setting up an auto debit arrangement is more effective than withdrawing money, and then going to the bank where you will pass by restaurants, coffee shops, and retail stores. There are too many temptations that can change your mind about depositing the money. The same could be said with online banking, because there are also a lot of advertisements that will pop up on your browser and entice you to shop and spend.

Auto debit arrangements will force you to save money, which guarantees you will have money to spend when you need it.

Set the right budget

OFWs sacrifice moving thousands of miles away just to be able to provide a good life for their families back home. However, the tendency is to send almost all of your money and leave just enough to cover your basic expenses.

But if you will remove the wants from the needs, you will find that there’s still money left to add to your savings fund. You can ask a trusted family member to keep a portion of your remittance and deposit it to your local savings account. This way, you have savings here as well as savings abroad.

Stop incurring debts

If you want to save money, you should not incur any more debts. It defeats the purpose of saving. What are your savings for if your debts are also piling up? In the end, you will only use your savings to pay for all of your debts, leaving you with nothing but a few thousand pesos in the bank. If possible, avoid using your credit cards and applying for cash loans. If you can raise the money without having to borrow money, do it and enjoy being debt-free.

Make investments, no matter how big or small

When you work abroad, you should save and invest. You’ll never know until when you can work abroad, so save and invest while you can. It doesn’t have to be a huge amount. Start small and make it grow. If you’re new to investing, you can learn about mutual funds and UITFs. They’re simple, easy to understand, and require just a small amount of money. When you already have substantial savings, you can consider investing in real estate. Earn passive income from renting out or selling your properties, or you can even venture into business.

Avoid unnecessary expenses

You should cut down on unnecessary spending if you’re truly serious about saving. When you’re earning a lot, it’s very tempting to buy all the things that you have always dreamed of having. Again, it boils down to knowing which ones fall under the category of wants and needs. If you don’t need it, you don’t need to buy it. Just think about how much money you will be saving if you will not give in to your whims.

 

This article is contributed by iMoney, the premier financial comparison website in the Philippines, where users can easily compare and learn about financial products and general money-saving tips.