Financial independence should be a goal for everyone. But more so for many overseas Filipino workers (OFWs) whose main goal for working abroad is to earn more and secure a better future for their loved ones. The reason is probably the fact that bigger earnings mostly mean more spending for some. Once the money comes, people think it’s endless and so forget the necessity to save.
As OFWs are expected to be earning more abroad, then many may assume that saving money comes easier for them. On the contrary, this notion is not always true. In fact a special report of Cable News Network’s (CNN) “Eye on the Philippines,” said that OFWs are earning billions of dollars but they have a hard time setting aside money for savings.
The goal to save should be a top priority for OFWs because for majority of them, the working abroad stint is a temporary thing. Here are few tips to make the goal towards financial freedom easier:
- Put your mind to it. Don’t underestimate the power of positive thinking People who are serious about saving money should first make a firm decision to save. Have the mindset that you will save money and stick to it.
- Live below your means. Many OFWs upon receiving their salary would start thinking of things they want to buy like gadgets, appliances, jewelries, etc. Many OFWs and their families would also live a lavish lifestyle that would often leave their heads aching and their pockets empty. It is still best to live a simple life and to avoid spending as much as possible. Spend only on things that are needed and reduce those unnecessary wants.
- Invest your money. Put your money in a place where it will grow. Opening a savings account in a bank is a good start. However there are many option.
- Analyze your spending habit. List down all your purchases to clearly see where your money goes. This trick would help you see the areas where you are spending too much so you can easily cut back on spending and save some bucks.
- Set a financial goal and strive to accomplish it. Make a financial goal that you know you can realistically accomplish after your overseas work contract. For example, you can start a business, buy a house or set a desired amount in your savings account.
- Involve your family in your financial goal. If your goal is to start a business or build a house after 5 years, make sure that your family knows it too. This way, saving will be much easier as you will have a support group to encourage you. You can also count on them to remind you if ever you start forgetting your goal.
- Avoid vices. It is so easy to start a bad habit or a vice such as drinking alcohol, smoking and gambling but quitting would take lots of determination and effort. So spare yourself big trouble by quitting early or not even starting it. Vices are money traps so people with no vices save a lot.
- Be careful when using credit cards. Avoid debts as much as possible especially the ones that incur interest. Shopping is so easy when using credit cards but remember to treat you card as cash, meaning you should only buy the things that you can easily pay in cash. Also, always pay the total amount of your bill and on time.
Source : ofwguide