How many years are you working abroad? In that, say two or three years, how much were you able to save? If you don’t have enough cash to last you for at least three to six months, then perhaps you are doing something wrong along the way, at least in the financial aspect.
Don’t worry. It’s not too late for you. You can still protect your hard-earned money (and have something for the rainy days) with the help of these tips:
1) Be wise with your investments.
Admit it. You are saving up for your dream home or dream car for the family. Apart from setting aside a portion of your money for that, you also considered getting a loan to cover a big chunk of the purchase price. The problem with this is that being an OFW is not forever and there is a possibility that you might not be able to pay the amortization regularly.
This is where investments come in. Consider opening a time deposit account or try the stock market. The more diverse your portfolio is, the better for you to grow your money.
2) Protect yourself against uncertainties.
The future is and will always be uncertain. You will never know what could happen to you, which is why you need to prepare yourself for the worst. By worst, this could mean loss of employment, sudden sickness in the family that could deplete your savings, or even death.
This is why it is important to be prepared.
Start by creating your own emergency fund, which should be at least three to six months-worth of your current income. Getting an insurance can also be another option to prepare you for uncertainties (know more about OFW Compulsory Insurance here). Setting up a retirement fund can also help you start in case an unexpected event happens.
3) Always be wise with your spending.
Working overseas means you have access to things you don’t normally find in the Philippines. Since you are earning more (and in dollars), you might be tempted to buy anything you could find and send it back home.
If you are serious about protecting your hard-earned money, then you need to be wise with your spending. Here’s what you can do:
- Always set aside a portion of your money according to your expenses.
- Avoid sending the biggest chunk of your money for remittance.
- Consider packed lunch instead of buying food from restaurants.
- Don’t focus on material things. Your family doesn’t need new shoes every month.
- Share a room with fellow Filipinos to save on rent (in case housing is not part of your benefits).
In other words, be disciplined with your money and spend it wisely.
4) Avoid the “I deserve this” mentality.
You sacrificed a lot for your family, to the point of leaving them behind and work overseas. You forego your own happiness just to give them a better future. So if you see that watch you’ve been eyeing for years, it’s okay to buy them since you deserve to reward yourself for all the sacrifices you made.
Here’s the thing: sometimes, the “I deserve this” mentality could go out of control. You might end up spending too much on certain things since you deserve it for all the hard work you did. If this continues, you might find yourself going back home with little to no money on your pocket – and you surely don’t want that to happen.
The bottom line is this: working overseas is never going to be easy. Protect your money by investing on you and your family’s future and not on what will make everyone in the family happy – for now.