27 Feb 2025
Living abroad for better career prospects is a common dream for many and comes with various challenges. An expat can succeed abroad only through innovative financial management, especially for Filipino citizens who must fulfill their responsibilities in the UK and back home.
Whether it is reducing living expenses or the costs of sending money back home, information regarding good personal finance could make a huge difference. This article can help many Filipinos in the UK looking for various methods to send money to Philippines from the UK within the shortest time possible, securely, and cheaply.
A budget is a roadmap to achieving financial stability, hence the first step. Thus, for the Filipino community in the UK, it involves social spending on necessities and personal/emergency funds at a relatively higher cost, setting up some self-investment, and remitting to beneficiaries in the Philippines. A straightforward budget typically includes:
Housing costs, varying significantly by location and property type, typically representing the largest expenditure for residents in the UK, particularly in London. For example, the costs could be reduced by sharing an apartment or choosing less expensive destinations. Conversely, purchasing a detached house within a prime neighborhood of London can result in significantly higher monthly outlays compared to renting a studio flat within a smaller city.
Eating out, particularly in the UK, can be expensive; therefore, cooking at home will be much cheaper.
Reduce your reliance on cars by choosing public transport or the convenient cycling options offered by bicycle-sharing companies.
Savings and provisions for the family are also essential, and they call for habitual savings as well as regular income. Apps, particularly those designed for budgeting, help control spending and determine how your money is spent.
Statistical research indicates that the average household in the UK spends approximately £2,548 per month, which is important while preparing the budget. These costs can all be tracked to determine where one can save money and hopefully avoid financial strain.
A large number of Filipinos live in the UK, and many of them send money online to Philippines. It is essential to have the relevant information regarding the fees as well as the commissions, exchange rates, and the time required for the different kinds of remittance services. Some of the most popular money transfer options for Filipinos include:
Many banks in the UK offer international money transfer services, but the costs or fees they charge per transfer can vary significantly. It’s worth comparing the options.
Companies such as ACE Money Transfer can present attractive exchange rates and lower commissions for transferring money to the Philippines via the Internet from the Great Britain.
Today, many mobile services exist for international money transfers as well as rate tracking. A survey in 2024 showed that international money transfers through electronic methods cost about one-third less than through formal banks. This can save a lot of money, particularly for those who remit their money frequently.
Long-term residents of the United Kingdom who are Filipinos know that having savings and investments is a wiser choice financially. Several savings and investment products can help grow wealth and offer additional security for the future:
An ISA is a tax-free savings plan where the investor can choose cash, stock, or shares. The ISA allowance for the 2024-2025 financial year is £20,000, offering a tax-efficient investment opportunity that can be beneficial for film workflow financing.
For those seeking to invest in equities, bonds, or mutual funds, there are cheaper ways to get started with companies like Vanguard and Hargreaves Lansdown. When investors would want to invest in the UK or Philippine’s economy, various options should be considered to meet their financial needs, wants, and desires.
The remittances accounted for 8.3% of the country's Gross Domestic Product (GDP) and 7.4% of its Gross National Income (GNI). The growth was driven by higher remittances from both land-based and sea-based workers.
The remittances accounted for 8.3% of the country's Gross Domestic Product (GDP) and 7.4% of its Gross National Income (GNI). The growth was driven by higher remittances from both land-based and sea-based workers. While making a money transfer to Philippines, consider the following tips:
Rates keep changing, and when it is time to send money, one has to ensure that the recipient will receive the money in an amount greater than the expected.
Internet services are cheaper than banking; some even offer incentives or no charges for the first transaction.
While obtaining a loan or credit in the UK is relatively easier, it’s essential to proceed with caution. Many Filipinos prefer to avoid loans with higher interest rates, prioritizing financial stability over debt. The following tips can help manage the debt effectively:
Credit cards can be used as tools to contribute to credit scores. However, they should be paid in full each month to minimize the charges.
These may be convenient where relatively larger amounts of cash are involved, although such cards typically attract their interest rates, and one should try to make the rate as low as possible.
Thus, exchange rates can significantly affect the amount of remittance received in the Philippines. Sending costs also include the exchange rates, so comparing the current rates from the other service providers is pertinent. Some sites offer the options to monitor fluctuations within the exchange rates to inform when to transfer money.
ACE Money Transfer guarantees a fixed exchange rate for the individual transfers, ensuring the rate remains constant throughout the transaction process, from initiation to receipt in the Philippines.
For Filipinos who want to pursue business ventures, the UK is good as it offers a good job market for all the smaller businesses. Whether starting food services or freelancing, a business establishment can be the best means through which one can earn an extra income. Filipinos with business aspirations can:
You can also send money online to the Philippines from the UK to your family members if they want to start a business venture in their home country.
The taxation law in the United Kingdom is complicated, particularly for residents with other liabilities to pay to the Philippines. It’s essential to stay aware of the tax regulations to avoid penalties and maximize their benefits.
Saving for an emergency is one of the biggest priorities in managing money. Setting aside $500 to $1000 per month for a rainy day is crucial, as financial pundits suggest that individuals put aside at least three to six months of living expenses. Beyond basic coverage, health and life insurance policies can offer financial security for various life goals, such as retirement planning or estate protection.
The UK has its own healthcare services, the National Health Service (NHS), which offers care for their population, although having separate private health insurance can sometimes be helpful. Different insurance offers exist for Filipino nationals living abroad, including national and international emergencies.
While it is considered normal to work abroad, many Filipinos dream of returning to the Philippines. Financial preparedness for retirement is crucial, ensuring comfort both in the UK and one's home country. Filipinos can plan by:
The critical lessons a Filipino living in the UK can learn about financial growth include the following. Deciding on the most cost-effective and best ways to make an online money transfer to Philippines from the UK is an important decision at any given period of time. Budgeting, saving, and identifying new ways to earn can help people in the Philippines create a better financial future for themselves as well as their families.
Furthermore, understanding and utilizing tax-efficient investment strategies within the UK can significantly enhance long-term wealth accumulation. Finally, diversifying income streams, both in the UK and through potential investments in the Philippines, can offer a robust financial safety net.
Begin by keeping a record of your earnings and outlays. Use spreadsheets or budgeting software to classify your expenditures. Set aside money for the saving purposes, necessities, and indulgences. Review your budget frequently and make any necessary adjustments.
Take advantage of employer-sponsored pension plans, automate savings, open a separate savings account, and look within the investing options.
Establish a transfer budget, prioritize requirements over needs, and consider utilizing reputable remittance service providers with affordable exchange rates.
Common mistakes include overspending, neglecting emergency funds, not taking advantage of employer benefits, and failing to plan for long-term financial goals.
Consider investing in stocks, bonds, mutual funds, or property. Research investment options, consult a financial advisor, and start with a small amount for investment.
