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Do you have a savings account? If yes, do you regularly (which means every month) deposit a fixed amount in it? If yes again, then congratulations. You are in the right track toward achieving financial freedom.

If not, then what went wrong? What’s stopping you from having a savings account or at least regularly depositing from that account?

Perhaps, below are the reasons:

Procrastination

Dictionary defines “procrastination” as the “act of delaying or postponing something.” 

In other words, you promised to save or open a savings account but constantly delays it and find tons of excuses not to do so (like a sale of your kids’ favorite shoe brand, so you promise to start saving next month and forget about it for the nth time).

What can you do? It’s about having the right and committed mindset. You will never run out of excuses just to delay saving, but if you start teaching your mind that you really need to do it NOW, then you could have a shot of at least depositing something on that particular month until it becomes a habit. The more committed and disciplined you are, the higher the chance of making saving happen.

Lack of Self Control 

You promised to save 10 percent of your monthly earnings and put it in a fund. Unfortunately, you passed by a department store on your way home and saw that big “Sale” sign on the front door. Instead of walking away, you decided to go inside and that “10 percent per month for savings” is gone for good.

What can you do? It’s hard to deny that spending feels better than saving – for now. Consequently, you also feel discouraged every time you see a not-so-big amount reflecting on your bank account. It may be cliche, but all good things come to those who wait.

Keep in mind that achieving financial freedom doesn’t happen overnight. At the same time, it is a combination of commitment, discipline, and (a lot of) self-control to keep you focused on your financial priorities. It’s hard at first, but resisting the habit of spending will help you achieve your financial goals.

Twisted View on Saving 

Have you heard of the term “loss aversion?” This means you prefer to avoid losses to acquire equivalent gains. For instance, you prefer holding on to your P1,000 instead of saving or investing it in order to grow the said amount.

This is where the twisted view on saving comes in. There are people who will hold on to that getting a portion in their monthly salary is equivalent to loss because something is being taken away. If you look at saving as a form of loss, then saving is and will have a hard time being part of your system.

What can you do? Start thinking of saving (or even investing) as a form of gain. Look at saving as a value and understand its value. Once you start recognizing the value of setting aside money, then it will come to you naturally.

The truth is you’re not alone in the No Savings Department. There are thousands of OFWs who are struggling when it comes to saving, thereby causing them financial distress in the long run. The good news is it’s not too late to start saving for your and your family’s future. Start now and don’t wait for that “emergency” to happen. You can do it.

There are many ways on how you can grow your money. Having a savings account is safe and won’t let you down, although this will yield lower return. If you are willing to experiment, getting a time deposit could be another option. Apparently, savings and time deposit are not the only investment options you can avail of. You can turn to bonds, mutual funds, or even stocks to make your money grow double (or triple).

“Hindi ko naman naiintindihan yan,” you might say.

Sadly, many people are taking advantage of OFW’s lack of understanding when it comes to various investment options. These people will lure you to get this and that and promise higher return of investment – only to realize in the end that it is a scam and your hard-earned money is gone.

The good news is you can do something about it to avoid falling into the trap. Here’s what you can do:

Learn everything there is to learn about investment options. 

It’s not enough that you want to grow your money to live comfortably eventually. Before you invest your hard-earned money, you need to educate yourself first about the investment options out there.

In other words, read up. Use the Internet to learn more about UITF, mutual fund, bonds, and stocks among others. If time (and budget) permits, attend seminars. Read financial blogs because you will find tons of information there. Join Facebook groups that are specifically for financial purposes and don’t be shy to ask questions. The more informed you are, the lesser the chances of becoming an investment scam victim because you know what you’re getting into.

Choose a company with good reputation and proven track record. 

It’s not enough that you know what you want. You need to find the right partner to make sure that they will help you in making those financial goals happen.

Therefore, choose an investment company with proven track record. The company must not be involved in unethical and illegal practices and at the same time, its leaders must be of people with integrity. Learn more about your chosen company by reading news and reviews about them before giving them your money.

Aside from the company reputation, your preferred investment partner must also be accredited by the Securities and Exchange Commission (SEC) and/or Bangko Sentral ng Pilipinas (BSP). This way, you are sure that the company is regulated and recognized by appropriate government entities. Consequently, it gives you a form of guarantee since you know that you – and your money – is protected.

There is no such thing as high return in short period of time. 

“Double your money in 10 days” or “Get your first million in a month.”

Sounds tempting, don’t you think? Since you are serious about growing your money, you decided to give in. Unfortunately, this is a perfect example of scam – and there is a chance you might not get your money back.

Keep in mind that earning from your investment won’t happen in days. It takes time for money to grow and even years to make sure that you meet your target amount. If the offer sounds too good to be true, then think twice before investing. All good things need time to grow.

Everything will be overwhelming at first, but don’t let it stop you from learning and eventually investing. Think about your goals and plans for the family to keep you going.

It’s the start of a new year. This means clean slate, new beginning, and a fresh page on your 365-day calendar. While the long-term goal remains the same, that is to provide a better and secure life for your family, you still list resolutions and plans for the year with the ultimate goal of achieving it by December 31.

Since you are listing your yearly goals, you might consider writing down your financial plans and at the same time, getting rid of these bad money habits for a more financially-secure future:

The “mamaya na” habit

Admit it. Your first month salary overseas was sent back home since your family needs it more than you do. Then, you promised yourself that you will dedicate a portion of your earnings for savings starting next month, to which you failed to do – again. You may not notice it but you put off savings or setting an Emergency Fund and only promise to do so when there’s extra income. The next thing you know, you are back in Philippine soil with little savings.

Get rid of the habit by imposing discipline on yourself when it comes to saving, Do what you can now and don’t wait for rainy days to come before you start taking savings seriously.

The “pakisama-slash-manlilibre” habit

You got a two-week vacation so you decided to go home and spend time with your family. Everyone in your barangay knows that you’re coming home, so they expect “libre.” To save face, you decided to give in since you’ll earn that money spent anyway. Then there are relatives and friends who constantly ask you out for a drink, so you have no choice but to pay for everything – even if it means using the little savings you have,

It’s okay to treat once in a while, but you should know when to say no and learn how to put some boundaries, especially when money is involved. You don’t have to be friends with everyone, especially those who are taking advantage of your position. Say no when necessary.

The “bahala na sa bayaran” habit

One good thing about being overseas: some items are cheaper compared to buying them in the Philippines. You want to take advantage of that so on your next paycheck, you decided to splurge and buy a lot of goods for the family back home. It doesn’t matter if you used up your entire one month salary. You’ll earn them anyway next month.

What if someone in the family got sick even before you get your salary – what will you do? You might say “bahala na” but don’t you think it’s much better if you are prepared for situations like this?

The “para sa pamilya naman” habit

You send most, if not all, of your earnings to your family back home. You even take side jobs for additional income. While there’s nothing wrong with this mentality, you are slowly starting to take away one important factor in the equation: you. 

Don’t send everything back home. Have your own savings. Set up an emergency fund (and don’t inform your family about it – yet). Prioritize your expenses. Have a break and treat yourself because you deserve it.

The “pasikat” habit

Your co-worker has a new phone. Your daughter called and asked for a tablet because her classmates have one. You bought new pair of shoes even if you just bought a par weeks ago. In other words, you give in to buying material things to make yourself and your family look “better off.”

This is okay if you have sufficient funds to sustain you for many years. If you rely on your monthly income with the danger of being out of job after your contract, then you need to re-think your priorities and stop buying things that won’t last forever.

The “hindi ko alam yan” attitude. 

At one point, someone talked to you about insurance, stock market, and other forms of investment. You brushed off the idea, saying that you don’t understand it anyway. As a result, you settle for the safe and low risk without even giving investment options a chance.

Here’s the thing: it won’t make you less of a person if you ask someone who is knowledgeable about something. Take your time off to educate yourself about stocks, UITFs, mutual funds, and bonds among many others. Eventually, start small and try what the market has to offer.

This post can also help you start your investment journey even with little capital.

Are you ready to break these bad money habits?

Here’s the truth about applying for a job overseas: before you can set foot in a foreign land, you need to pay for certain fees in order to make the job possible. This includes payment of placement fee.

Placement fee is the amount that either you or the employer has paid to the recruitment agency as a form of compensation for hiring a qualified worker for an overseas job. It usually amounts to equivalent to or less than one-month-worth of salary. This fee is placed in a fund, which can be used to assist an overseas Filipino worker in times of need.

Despite its good intentions, most Filipinos dread the day they have to pay for placement fee. Some agencies prefer “salary deduction” wherein a portion of your salary will be remitted for payment of placement fee. Apparently, not all agencies do that. As a result, Filipinos often borrow money from relatives; hence “utang na loob.” Some would even sell valuable assets like residential lots or farming lands to make up for the fee.

Still, the key here is preparation – and these tips will help you raise enough funds for it (without giving up your home or other valuable assets):

1. Look for something you can sell. 

It could be shirts or shoes you never get to wear or items that are still in mint condition. You can even sell unopened, duplicate items like lotion or shampoo. Believe it or not, some things you don’t need anymore could be valuable to other people, so why not convert it into cash.

The good thing about this is that selling them easier. Take good pictures, provide all the information needed, and then post them on OLX, Facebook, or Instagram to attract potential buyers. The best thing about this is that it is free.

2. Get a side job. 

Aside from selling some of your items, you should also consider getting a side job or do some freelancing to help you raise enough funds. The good thing about this is that you get to work at your own pace and you are only hired on a per-project basis.

You can try freelance writing, English tutor, or data encoding jobs. The pay may not be that high, but it is good enough to add to your placement fee fund. If someone in the family enjoys baking or crafting, then put them into good use by selling products online.

3. Eliminate unnecessary expenses. 

It could be eating out in restaurants (fast-food is considered as eating out), going out every weekend, or coffee trips with your family. Perhaps your spouse enjoys online shopping, which can be considered as unnecessary if the item bought doesn’t come with sense of urgency. The point is there are some expenses that are considered unnecessary because they are something you can postpone.

If you want to save up for your placement fee, then do your best to eliminate spending for unnecessary expenses, regardless of how small the amount is. P1.00 is still P1.00 and it could make a difference if you are saving up for your placement fee.

4. Do not immediately resort to loan. 

If you prefer something quick and instant, then borrowing money could solve your placement fee problems. Still, this equates to debt, which you need to pay for every month.

Therefore, do not immediately borrow money from lenders to avoid incurring penalty or interest charges in case of late payment or inability to pay the loan. This could also affect your chances of getting a loan the next time you apply for more urgent needs because of your history of non-payment. Surely, you don’t want that to happen.

Take note that payment of placement fee will only be done AFTER you signed an employment contract bearing the job you were accepted for. Stay away from recruitment agencies that ask for payment of placement fee the moment you submitted an application form.

Nonetheless, take note of these tips (and make sure you do them) so you don’t have to worry when the time comes and you have to pay for it.

They say Christmas is all about giving. While we want to look at the word, “giving” in a positive way, this word equates to “spending” as well. When you spend, this means you take a portion out of your salary or savings to give something to those who mean a lot to you.

What if we tell you that you can still save a few hundreds (or even thousands) despite the Season of Giving?

Here’s how to do it:

1. Sell some of the things you own. 

Do you have purchased clothes you haven’t even worn? What about the duplicate pasalubongs you’re supposed to send to your family that are sitting in your cabinet? How about items that you were supposed to place inside the balikbayan box but you already forgot?

Save some space and get some cash by selling them. Offer them to your colleagues or sell them online for extra cash this Christmas.

Or another good idea would be to give those extra items as a gift instead. This way, you don’t have to worry about making that trip to the mall, especially on this busy month.

2. Set a budget. 

It may sound like a broken record, but if you really want to save, then you need to make a budget for everything, especially during the Christmas season. Having a budget allows you to control your expenses and set limitations.

Start by listing all of the people you plan to give gifts to (if you can, with your ideal gift). If time permits, shop around to give you an idea how much your ideal gift costs. This allows you to set aside a specific budget for each person.

3. Share a gift with someone. 

Do you have a friend you are closest with? Why not share gifts with them to cut your spending into half. This is a good way to save more since you have someone to share expenses with. Nonetheless, this will only be a good idea if you plan to give gifts to your boss or fellow workers.

4. Always pay in cash. 

This is another must-do rule during Christmas. Using a credit card to pay for your purchases may be convenient, but there is a higher possibility that you won’t be able to pay on time; hence incur interest or penalty fee.

If you want to save more, then paying in cash is the best way to go. Plus, you are more conscious of your spending because you know how much is left in your wallet.

5. Consider getting a sideline. 

Christmas is a busy season for everyone. Why not take advantage of it by offering your services for a fee?

Ask around and see if there are any temporary job openings, say in a mall or restaurant. You can also ask your employer for extra jobs for additional earnings.

If you prefer staying in your place, then you can try answering surveys or complete online reviews. There are tons of websites that offer this type of service where you can be paid. This is good enough to give you something extra for the holidays.

6. Try online shopping with cashback services. 

This is popular these days. Cashback sites are websites that partner with online retailers where you get a “money back” for every purchase made on that particular retailer site. The higher the purchase, the higher the cash back will be, which you can use on your next purchase or even have it encashed by crediting it in your bank account.

Still, don’t use this as an excuse to shop and go beyond your budget. You’re after saving and not spending.

More importantly, practice self-control. Gift-giving is not measured by how expensive an item is. What matters most if that you remembered that person and you give something that s/he will appreciate. After all, that’s what Christmas is about, right?

Are you planning to work overseas? Before you dream of seeking greener pastures, the first thing you need to look for is a recruitment agency that will make your dreams come true.

By definition, a recruitment agency is a company that engages in finding suitable and qualified workers for other companies or organizations, both in the Philippines or overseas.

Recruitment agencies are everywhere. Because of the increasing demand for jobs and the money that comes with it, some people are taking advantage of the trend and promise to offer people jobs, only to realize that there are no jobs waiting for them. Worse, you paid for corresponding fees and can’t get your money back.

To avoid this from happening, here are some tips to remember when choosing a recruitment agency:

Tip No. 1: Always check the legitimacy of a recruitment agency. 

This is the first thing you need to check before submitting an application form. While the job offer looks tempting, you’ll never know if it comes from a legitimate agency; hence checking their status is a must.

Don’t rely on the POEA license number posted in their offices. You can check them out in the POEA website to make sure that you apply in a legitimate recruitment agency.

NOTE: Internet-based recruitment agencies are a big NO-NO and are currently tracked by POEA. Do not apply with them.

Tip No. 2: Do a background check of the agency. 

The good news is the recruitment agency is licensed and legitimate. Does this mean they are good? Not exactly.

You need to do a background check on the recruitment agency as well. Find out about the agency’s history, officers, number of workers deployed, and other types of services they offer to help OFWs. If the agency has awards or recognitions, then much better because it only shows the kind of service they offer. If possible, ask about the experiences from previous workers. This way, you will have an idea of what your experience would be like when you apply.

Since you’re already in the process of applying, pay attention to how the agency employees treat their clients. Make sure they are respectful enough in dealing with people since they will do the same with you.

Tip No. 3: Stop when payment is asked. 

Eventually, you will have to pay a placement fee and other documentation costs, which is often deducted on your first monthly salary. If a recruitment agency, no matter how legitimate they are, asked for payment of placement fee upfront, then you need to withdraw your application.

Take note that you are only required to pay upon signing of employment contract, which must be evidenced by official receipts as proof that payment was made. Before that, you should not pay the agency a single centavo.

READ: Prohibited Acts When Applying for a Job Overseas

Tip No. 4: Pay attention to the documentation. 

Let’s say they didn’t ask for payment of placement fee upfront. Then that’s good news. Still, don’t celebrate yet. There are recruitment agencies who ask workers to sign dubious documents or documents that are difficult to understand, which is also not a good sign.

Therefore, pay attention to the application form, which should only contain questions relevant to your personal information and work experience. If employed, you should be offered working visa and NOT tourist visa since the intention is to work overseas. Aside from punishment fees, there is always a higher risk of deportation – and you don’t want that to happen.

Tip No. 5: Ask recommendations. 

Your friends and family who worked overseas can always provide you with the best information based on their personal experience. If none in the family or your circle of friends have tried working overseas, you can always rely on OFW forums or groups for information about the best recruitment agencies and their personal experiences.

Choosing the right recruitment agency is just the beginning. Make this right and hopefully, everything else will run smoothly.