20 Dec 2022
Over 12 million Filipinos live abroad, most of whom work abroad say there is no other feeling that is sweeter than visiting home. But how can that be possible if one is living paycheck to paycheck? Most Filipino workers abroad have to send money to Philippines each month which can make them financially vulnerable. The significance of saving money cannot be emphasised enough. Expats especially have higher expenses on their hands than regular workers. Hence, they have to be 10 times more careful of their funds.
Let’s examine how overseas Filipino workers (OFWs) make enough savings to be financially stable.
Undoubtedly savings remain critical for every expat worker, albeit ensuring them is challenging, especially when you live in an advanced country with an expensive lifestyle. Here are some essential tips and tricks to make you financially strong with good savings.
It is not uncommon for Filipino families to receive remittances from their OFW relatives. In 2021, 31.4 billion USD were sent to the Philippines. This shows the pressure OFWs have on them to financially support their families back home, which affects their savings. As an OFW, you must have a serious conversation with your family to decide how much will be enough to be sent back home that wouldn’t affect your expenses.
Instead of living paycheck to paycheck, draw the bigger picture in your mind and come up with a financial goal. Think about the answers to the following questions:
Based on the answers to these, you must start taking small steps towards achieving the big goal. Figure out the amount required to fulfil these goals monthly. Regularly practising it will lead you to achieve your long-term goals.
For an organised money flow, you must have different bank accounts for various purposes. It is ideal to have at least two separate bank accounts. One for monthly expenses and the other for savings and investments.
According to recent stats, 2.2 million OFWs reported returning back home. This is mainly because not all OFWs get retirement benefits from their employers. Hence, keeping in mind the trend, you must open up a bank account in the Philippines.
Each month when you make a money transfer to Philippines for your family, you can also transfer some amount to this account as a retirement plan.
Everyone follows their money-saving methods. It is essential to have a proper system that divides your monthly income and manages your expenses in an organised manner. You should also have enough willpower to control splurging on useless items.
If you cannot think of a saving plan, then follow the 20/30/50 rule. It states that 50% of your income should be utilised in your household expenses, including rent, fuel, bills etc. 30% should be spent on your luxuries such as travel and shopping. The remaining 20% should be saved. You can always mingle up the percentages according to your needs and income.
You must be wondering how one can self-sabotage. It happens when you allow vices to rob you of your long-term goals. These vices can come as destruction for both your body and your wallet. It is easy to indulge in vices when living alone to cope with loneliness.
Many OFWs have previously gotten into gambling, smoking, drinking, and overspending, which they later regretted. To save yourself from a lifetime of guilt, stick to the alternatives. You can work out, play sports, or meet other Filipino expats. Try to nurture your mind and body. It will save you from large bills with illnesses caused by vices.
Staying far away from these activities also saves you a lot of monthly money that can go into your savings account.
You will always have a considerable expense in the future, be it home renovation, vacation, or sending your child to college. While all of these can be paid through debt, saving for them early on is advisable. With savings, you can manage your necessary expenses and avoid debts that typically disturb your overall budget. You can save on day-to-day needs by managing your needs wisely, like sending money home through credible and economical services. If you make an online money transfer to Philippines via a trusted service, like ACE Money Transfer, you save on transfer costs and get the highest possible exchange rates for a foreign currency to Php.
Investing your money is more important than saving it due to currency devaluation. Investments can be risky, so it is advised not to put all your eggs in one basket. You can invest in stocks, real estate, health or life insurance, cryptocurrency etc. Real estate is seen as a great investment opportunity as it can provide passive income, and the value rises over time.
As an overseas Filipino worker, you will have to send money back home frequently. International wire transfers are costly and easily cost more than 12GBP for international money transfers. The wire can take 2-3 business days to reach your loved ones.
If you want to save money, it is time to say goodbye to wire transfers.
Online Money Transfers are gradually taking over the remittance world. People no longer want to wait in lines as convenient substitutes are becoming popular. A digital money transfer is much cheaper, affordable, speedy, and efficient.
ACE Money Transfer is the most preferred company for sending money abroad. It offers the cheapest transaction fee and market-competitive exchange rates so that most funds reach your loved ones instead of getting deducted in the procedure.
The app is easy to use with high security to protect your funds. The service is available 24/7, making it the ideal option in emergencies.
Starting to save money at an early stage is highly essential for gaining future prosperity. ACE Money Transfer helps you achieve that by offering economical international transactions. Sign up now for free to send money to Philippines online at an unbelievably low cost.