End of Contract: How to Prepare When Your Employer Did Not Renew Your Contract

The life of an Overseas Filipino Worker is full of uncertainties. Despite the existing contract, there is a possibility that it won’t be renewed or your contract will be cut short due to unforeseen circumstances. In case this happens, how prepared are you and your family?

The good news is preparation could help you a lot to help you get back up on your feet in case the unimaginable happened. It may be difficult at first, but here’s what you can do:

1) Set up an emergency fund. 

Being financially prepared is a must, especially with your line of work. One of the things you can do to help you prepare financially is to set up an emergency fund for the family.

From the name itself, an emergency fund is something you can use during unforeseen circumstances. It could be sudden death, illness, and in this case, loss of employment. This fund can help you cover basic expenses such as utilities and food. Ideally, your emergency fund should help you last at least three to six months until you are able to find a new job.

You can read this post to know more about emergency fund with tips on how to set it up.

2) Always have a plan. 

Surely, you can’t work overseas for the rest of your life. You still want to get old in the Philippines and having a plan can help you with that.

What does this mean?

Think about the future. Think about the things you can do once your contract expires. It can be opening a sari-sari store, your own tricycle business or driving your own taxi. Consider buying a small property or a condominium unit and have it leased. The bottom line is have a Plan B and start working on it while your contract is still in force.

3) Invest early. 

Having a savings account is a good start in establishing your financial stability. Still, don’t limit yourself with your savings account.

While you still can, explore other investment opportunities such as mutual fund, UITF, or stocks. These investment options yield higher return than savings account, thereby giving you sufficient buffer in case your contract was not renewed.

Check this post to know more about your investment options.

4) Look for other income opportunities. 

So you were sent home because your destination country is going through political crisis. Even if the government gave financial aid, the amount will not be enough to help you last a month. What should you do next? ‘

Don’t be afraid to look for other opportunities. You can always apply again, but it will take months before your deployment. Or you can look for other jobs in the meantime to help you get by. The salary may not be as big as what you are earning abroad, but it will be enough to sustain your family’s needs while waiting for another opportunity.

5) Train your family early on. 

Admit it. Most of your salary is dedicated for your family. Aside from the monthly remittance, you have to fill up a balikbayan box with your family’s bilin. 

Cut the habit and train your family to live a simple life. Do not give in to their demands all the time just to appease them. Keep in mind that your life as an OFW is not forever. You will never know what will happen in the future. You don’t want your kids to get used to a lavish lifestyle, do you?

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