6 Money Lessons OFWs Can Learn During Covid-19 Pandemic

2020 has been a challenging year – so far. Tragedies and natural phenomenons rocked the whole world. As of this writing, the world is still being challenged in the form of Covid-19.

The pandemic put a halt in everything. Tourism is heavily affected. Unemployment is on the rise. Lockdown policies are still in place, thereby making you unable to work or go to your country destination. Worse, the economy is bleeding, not just in the Philippines but also around the world.

Filipinos are resilient. We will constantly look for opportunities to rise in every diversity. That being said, here are money lessons we all can learn from because of this pandemic:

Lesson No. 1: Emergency Fund Is A Must

Emergency fund is designed for a specific purpose: during emergencies. At times like this, you need this fund now more than ever since, well, this is an emergency.

Ideally, an Emergency Fund must allow you to survive for at least three months. This will cover expenses such as food, medicine, and utilities while you are unable to work.

If you don’t have a separate emergency fund, then your savings will do – for now. The government provides P10,000 cash aid for OFWs plus other forms of help but having this type of fund could help you get through the rainy days.

READ: What You Need To Know About Emergency Fund

Lesson No. 2: Needs Come First

In this kind of situation, needs come first – always. You cannot afford to splurge on things your family back home wants, even if it’s on sale, because you need to be wiser on how you will use your money.

Covid or no Covid, always prioritize what your family needs first. Don’t buy items that will have no value in the long run just to satisfy your family’s requests. Splurging from time-to-time is okay and for as long as budget permits. But at this point, needs will come first.

Lesson No. 3: Invest Your Money Wisely

Investment is process wherein you put your money into something for profit or material results. Unfortunately, a new phone, bags, and shoes are not considered as an investment.

Stocks could be a good form of investment since the value appreciates over time. Companies give dividends several times a year, which means additional income. In case budget is an issue, time deposit or UITF could be a good place to start.

If you want something more tangible, then place your hard-earned money on properties. This way, you can have a place you can call your own.

The bottom line is be wiser. Banks and other financial institutions offer various forms of investment to help you grow your money.

Lesson No. 4: Look For Alternate Source Of Income

Your job overseas may be giving your family a comfortable life back home. Still, don’t be complacent. Having alternate source of income, whether in the Philippines or wherever you are, could help you a lot since you have additional buying power.

Teach your family to start something as well. Cook well-loved family dishes and sell it online. If any member is good at something, then consider monetizing that skill. Freelance or online jobs could be a good source of income as well.

More than anything, this pandemic is teaching each and every one of us to go out of our comfort zone and work harder.

Lesson No. 5: Borrow Wisely

There’s nothing wrong with borrowing money, especially if you need it to fund your existing business or thinking of buying a family home. But if you are borrowing money to extend your wallet to buy material things, then you need to evaluate your priorities.

Borrow money only if it will help you in the long run.

Lesson No. 6: Live Simply.

One thing this pandemic taught us is how to live a simple life. You’ll realize that at the end of the day, material things don’t really matter.

Sure, it will make you happy but at the end of the day, what matters most are food on the table, decent clothes to wear, roof above the heads, and a comfortable life.

What have you learned during this pandemic?

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