ACE Money Transfer - Blog

6 Ways to Better Manage Your Finances as an Overseas Filipino Worker

6 Ways to Better Manage Your Finances as an Overseas Filipino Worker

11 Jan 2023


One of the dreams of many Filipinos is to work abroad. The main reasons Filipinos seek employment abroad are the higher salary, which enables them to give their family a better life and more career opportunities with better earnings. Many overseas Filipinos send money to Philippines regularly to help manage households back home. Working in advanced and wealthy nations like the UK, Europe, Canada, Australia, and Switzerland, to mention a few, allows OFWs to earn money in stronger currencies that they can turn into more pesos after sending funds home.

Your ability to save money is more important than your income. Increasing your income is just one aspect of financial planning. It has many facets and is made up of various elements. Let's talk about these money management suggestions and see how each one might assist you in managing your cash to aid you out.

Money Management Tips for OFWs

Making savings is one of the most challenging tasks for expat workers settled in developed countries. Nevertheless, you must learn different strategies to avoid extra expenses and make savings for emergencies, future investments, or other benefits. Following are a few workable tips to help you save enough while working overseas as

Set Your Long-Term Goals

The truth is that being an OFW does not last forever. Make the best use of your time overseas to prepare for the future since you will eventually need to return to the Philippines after your contract expires. Get ready for life after working abroad.

Perhaps you'll decide to retire early and permanently return home. You should also consider the potential of being laid off due to unforeseen events like a layoff or illness. You'll be one step closer to accomplishing your goals if you set specific, attainable goals that act as a guide for your financial decisions. 

These objectives may relate to your professional life, company, family, or personal life. Your objectives will help you stay on course and stop you from overpaying for things that offer you immediate satisfaction. Living in the moment is great, but it's best to find a balance by putting your own and your family's future first.

When you support your family with a money transfer to Philippines every month or in times of emergencies, you may try to save some bucks. The habit of saving some money, whether little or big, will ultimately help you achieve financial stability.

Remain In Budget and Evade Debts

Create a detailed financial budget for your monthly expenditures and adhere strictly to managing your finances effectively. You can do this by allocating a portion of your income to savings, family requirements, costs, an emergency fund, insurance, and investments.

Particularly when you're working overseas and the temptation to indulge in seasonal sales and discounts is too strong to refuse, it's crucial to live within your means and be conscious of your spending habits. Although having a credit card has its benefits, such as convenience and earning reward points, you must use it responsibly to avoid incurring costly fees or going into debt. Verify if your family is leading a moderate lifestyle and adhering to the budget. 

Send Remittances Directly to Your Beneficiaries' Accounts

Even if your prime motive for working overseas was to increase your income so that you could support your family, you might still keep track of how your money is being spent. It's a good idea to have someone you can trust with your money back home (a spouse, parent, or sibling), so they can use it to pay the bills and make other necessary expenditures properly.

Your remittances can be directly credited to this person's account at home. Alternatively, you can send only a percentage of your wages online to your beneficiary's account and use an online banking system to control your family's domestic spending.

Send Money to the Philippines Through Your Personal Savings Account

It's wise to provide for your family's necessities. However, setting aside some money for yourself to have emergency reserves, retirement funds, and future investments is preferable. By removing the burden from your family in case things don't work out as expected, you can ensure that they are taken care of by considering these matters while you still have the means to do so.

You can gradually build up your savings funds, which will come in rather helpful in the future, by disbursing a portion of your foreign profits into your personal savings account. Further, making a secure, economical, and instant online money transfer to Philippines via ACE Money Transfer is also recommended since you get the lowest transfer costs and the highest exchange rates from the firm.

Invest Wisely 

Learn how to make your money work for you rather than the other way around. Financial literacy includes learning how to make wise investment selections in addition to comprehending and using financial skills like saving money and adhering to a budget. You can choose from various options, including bonds, equities, index funds, and mutual funds.

Starting a business is another option for investing your hard-earned cash. Investments carry dangers, so avoid putting all your eggs in one basket and make sure to conduct thorough research before making any financial decisions. Avoid falling victim to popular financial frauds that prey on OFWs.

Enjoy The Benefits of Using Prepaid Cards

No matter how much or how little money a person makes, planning is one of the first skills they should acquire. Simply said, you are managing your money responsibly about your expenses. This is considerably more required of OFWs, who sometimes even support their relatives in addition to their original family. Although there is no disgrace in doing so, it's also crucial that we understand how to make the most of our money while there is still plenty to share with everyone.

ACE Money Transfer Has Good News for OFWs 

Customers throughout the world may now transact internationally much more easily, thanks to ACE Money Transfer. Filipino foreign workers and expats can now send money to Philippines online with only a few clicks. With a variety of payout options, ACE makes it very simple for consumers to transfer money to Philippines at any time and from any location.

Additionally, ACE Money Transfer enables various remittance options based on customer needs without interfering with their comfort. By successfully transferring your payments to the designated recipients, ACE Money Transfer guarantees the protection and safety of your money. Beneficiaries may get payments from any Philippine-connected bank.


Tips

PREVNEXT
11 Essential Tips You Must Consider When Moving To Canada From The Gambia In 2023
Where is the Global Exchange Market Moving? Things to Expect in 2023

Comments