Time and again, people will always tell you, “Mag-invest ka! Sayang kinikita mo.” That’s true. Earning in dollars allows you to save more than what you can save here, which is why you need to take advantage of the opportunity.
You might say that you have no idea what investments are or how the stock market works. You’re not even sure if you are equipped to invest. You might even ask how and where to start investing. It’s a good thing you stumbled upon this post because this will give you a guide to make you start investing.
1) Always start with a short and long-term goals.
When do you plan to get a new car? How about a new house for your family? How soon do you want to start with your mini grocery business?
Whatever it is, the first step in investing is to set your goals, both short-term and long-term goals. This will serve as your guide in choosing what type of investment you should go for. At the same time, you have a timeframe that will act as your guide on what to accomplish on the specified date.
2) Explore your investment options.
Now that you established your goals, it is time to look into the different investment options you can try. Most OFWs invest in a house or car first, only to end up swimming in pool of debt because they are unable to keep up with the monthly amortization.
The opportunities are limitless. You can start with mutual funds or UITF if you prefer earning a little while being safe. These are managed by bank experts so you get to grow your money without risking too much. Stock market or government bonds are also excellent choices to grow your money. If budget already allows, real estate or putting up your own business can help a lot, although this should be your last resort because of the risks involved.
The point is educate yourself about the investments available before you say yes to one. Check out this post to learn about the different investment options available for OFWs.
3) Set budget aside, depending on how much you are willing to risk.
You have your eyes set on a particular investment option and that’s good. The next step is to set aside a portion of your monthly income to be able to fund your investment and taking into consideration the remittance and daily expenses you have to pay for. Stick to it and you will reap the rewards of your investment in no time.
Bonus: This Financial Planner from the Bangko Sentral ng Pilipinas can be helpful in establishing your budget. You may access it here.
4) Be financially literate.
The good thing about investing today is that there are tons of information available online that allows you to better understand investment. Read up and educate yourself about various ways to grow your money.
Still, don’t limit it there. While you’re back home, consider attending financial education seminars for you to be better equipped about investments, especially when it comes to risks. The more educated you are, the better you will be in making decisions and identifying what is best for you.
5) Stop spending and start investing.
Most OFWs have the habit of spending money on material things so that they can send something back home. Even if the items cost less than how much they are priced here, you are still throwing away the potential of growing your money.
To start investing, you need to stop spending. Splurge once in a while, but don’t allocate your entire monthly salary for remittance and pasalubong. Your money won’t grow if you won’t start sowing them.
It doesn’t matter if you invested hundreds of thousands or P5,000. What matters most is that you start early using the investment option that suits you best. After all, every peso counts in every OFW’s life. Be ahead of the rest.