Practical Tips For OFW To Save Money

Saving should be done consistently, and it is a priority, as early as possible, even in small amounts.​

The question is, why do most Filipinos have the urge to work abroad? I admit that even though I was craving it before, God has a reason and a better plan for why I am still working here in the Philippines. Every overseas Filipino worker has a reason for leaving our beloved country.
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But one thing is for sure these workers have chosen to leave their loved ones behind in pursuit of better opportunities abroad for the sake of their families.​​

​They hope that after years of toiling in a foreign land, they’ll be able to come home and enjoy the fruits of their hard-earned labor. Some OFW successfully returned—with savings, businesses, and investments sufficient enough, for them to decide to go back here to the Philippines. Some are not as successful, while others still end up penniless, and the worst thing, drowning in debt.

Why is saving for the future important, especially to OFW? Saving for the future allows us to enjoy a comfortable retirement by enabling us to cover daily expenses, fund what we love to do, and prepare ourselves for emergencies. The future, however, is getting more expensive as family dynamics are changing, people live longer, and an active lifestyle is adopted. ​

So, how can an OFW effectively save their own hard-earned money? Here are some practical tips:​

Talk To Your Family
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Explain the importance of money. Remind them in a good way, "Hindi lang basta-basta pinupulot ang pera, pinagpu-puyatan at pinagpapaguran."

Pay Yourself First 
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It is important that regardless of your expenses and needs, you should also pay yourself at least a minimum 10% of your take-home pay. If you have an income of PhP 100,000 per month, you should have at least PhP 10,000 savings monthly. Don't wait for the time that you have to ask yourself where is it now?

Set Financial Goals
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You set your goal in accordance to your lifestyle. Take note that no one can set these goals for you.

Save And Invest
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Your money is like a tree. If you save and invest, it will grow and have an extra income. But just like a tree, if you don't care about it, it will eventually wither and vanish. You can put your savings into an investment or emergency fund.

Tip: Take advantage if you get take-home pay higher.

Be Responsible Decision Maker
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Educating yourself about financial management is one of the most effective steps to get wealthy. But still your money will always be your sole responsibility. You need to learn how to manage your finances accordingly.

Don't Spend Beyond Your Earnings
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Expenses start to bloat if you spend more than what you have. Learn to plan your budget and live with it. Don't aim for a bigger income just to spend more, you aim for wealth to prepare for your future and goal.

Differentiate Your Wants And Needs
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This is a state where self-discipline is tested. Differentiate your want and what you need relies on how you perceive things. Impulse spending should be avoided.

Maintain Steady Lifestyle
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​Spending does not have to grow at the same rate as income. Growth in income, bonuses, and other windfalls can increase savings and investment accounts.

Keeping expenditures relatively constant over time is a key method in achieving a secure financial future.

Obtain Knowledge And Advice
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Being financially fit means understanding and utilizing the main principles and best practices in saving and investing.

When needed, get help from a Registered Financial Planner that can help you build a savings and investment plan to meet your financial needs.