How many times have you heard that OFW life is not forever? It may sound like a broken record, but this one is true. This is why it is important to think long-term because what you have right now is only as good as the term of your contract.
Don’t worry. There is still a way to make the most out of your work overseas in order to attain financial stability.
Here’s what you can do:
1) Make saving a habit.
They say it takes 21 days to establish a habit. Start allotting a small portion of your monthly salary exclusively for savings and you might be surprised with how much money you will have at the end of the month – but don’t stop with 21 days. The more you save, the better.
Before you splurge for your family or make any purchases, make sure you set aside a portion for savings as well. You’ll never know what will happen in the future, so it’s better to be prepared.
2) Know the difference between needs and wants.
Needs are necessary expenses or something you can’t live without such as water, electricity, and food. In other words, these items are non-negotiable. On the other hand, wants are something you can live without. Wants are not necessary expenses and something you can delay such as new clothes, shoes, or even vacation with the family.
Know the difference between what you REALLY need and items you can delay. Would you rather maintain an extravagant lifestyle even if the hole in your pocket is getting bigger or having a bank account that could last you for years?
3) Involve your family in your journey towards financial stability.
Being financially stable should not be placed in the shoulder of just one person. In fact, it should be a collective effort, which involves every member of your family.
Therefore, train your spouse and children to save and prioritize only what’s needed. Don’t immediately give in to their material demands and instead, instill the value of saving. You’ll be happy to see how much you have every end of the month because everyone in the family is financially responsible.
4) Consider a sideline for extra income.
How much you’re currently earning will never be enough. Your cost of living and family’s needs are constantly increasing, leaving you no choice but to reduce your contribution for savings.
At this point, you might want to consider getting a sideline for added income. Take advantage of your off days and look for jobs you can do for a few hours. It may not be a lot, but what you’re earning can be allocated exclusively for savings or any sudden expenses back home.
5) Invest your hard-earned money wisely.
No, a car is not an investment. An expensive bag, gadgets, and even home appliances are not investment. You are throwing your money away because the value of these items don’t appreciate or increase over time.
By investment, this means a facility where your money can grow. It includes mutual funds, stocks, UITF, time deposit, and if budget permits, a property. Their values increase over time and in case you need to sell something to finance an urgent need, these items could yield higher return.
6) Start your own business.
Not all businesses are meant to succeed. Still, this doesn’t mean it is a risk not worth taking. Starting your own business, even if it’s a small one, can be a good way to secure your family’s future financially. With the right business practices and techniques, you can make your business bigger in no time.
Speaking of expansion, Balikbayad is here to help We offer loans to OFWs like you when it comes to cashflow needs at an affordable rate. Submit your application now and we’ll get back to you as soon as possible.