Every year, POEA will release the latest OFW statistics that show how many Filipinos with different skill levels were deployed and where. The number varies every year, but this will remain constant: hundreds of thousands of Filipinos are seeking greener pastures abroad to provide a good life for their family. After all, with the OFW earning in dollars, a good and stable life is within reach.
Here’s the biggest question: how come there are many OFW families are still not living the comfortable life?
Perhaps, these obstacles are the reasons why:
1) Lack of Goal Setting and Financial Planning
It is not the OFW’s sole responsibility to provide a better life for the family. In order to succeed, the family must work together in setting goals and planning about the future. This means OFW families must sit down, agree on what they want to achieve in 5, 10, and 15 years time, set guidelines and plans on how to achieve it, and make sure to stick to it.
It doesn’t matter how long you work overseas. Most of the time, working as OFW for 20 years won’t guarantee you a fat wallet. As long as you and your family agreed on what to do financially especially when you are abroad, then you might achieve financial freedom earlier.
2) Family Dependency Plus Lavish Lifestyle
Here’s a common scenario among OFW families: once someone starts working abroad, everyone else depends on him. The standard of living also changes, which explains why your monthly salary is often used up.
If you want to be a millionaire, then you and your family should maintain a simple lifestyle. Learn how to say no to extended family’s requests and take it easy in buying pasalubong. Sticking to your financial goals and making sacrifices will help you a lot in reaching your first million.
3) Financial Illiteracy
What kind of financial products do you have aside from savings account? Most Filipinos are not aware of the various financial products available, making the Philippines among the least financially literate – and OFW families are not an exception.
If you want to grow your money, don’t settle with having a savings account. Having one is a good start in establishing financial freedom, but take time to explore and try other investment options. You can start with Time Deposit or mutual funds. Bonds and investing in the stock market are also good options and yield higher return. If you are willing to risk it, buying a property or putting up your business can help you achieve financial freedom.
Know more about your investment options here.
4) Limited Information and Lack of Financial Education
There are many reasons why Filipinos are financially illiterate. Perhaps one of the biggest factors is the lack of education. Investment options or budgeting tools are not often taught in school and most of the time, you will have to find about it on your own.
Make use of the Internet, know the different options aside from savings account, and determine which tool is most effective to grow your money. Don’t be afraid to ask questions too, since it is part of your learning process.
Don’t let these situations get into your head and stop you from reaching your first million. It will take time and a lot of effort, but fighting these circumstances make all sacrifices worth it.