Overseas Filipino Workers should automate, budget, and invest their hard-earned money for their future.
Overseas Filipino Workers (OFWs) pump in an enormous amount of money into the Philippine economy. But how are these remittances being put to use?
If OFWs become smarter about their money, they will save more, and this increase in savings will inevitably benefit the Philippine economy.
These 3 Ways for OFWs to save money:
1.Avail of auto-debit programs. Because Filipinos earn more abroad than they would in the Philippines, there is the temptation to spend a lot more. This is problematic given that the cost of living is also generally higher in countries where there are high OFW populations. OFWs should commit to save part of their earnings through their bank.
The advice is also applicable when investing in mutual funds or Unit Investment Trust Funds (UITFs).
2.Set a realistic budget for the whole family. Most of the time, an OFW sends remittances back to the Philippines in the hopes that the money will be put to good use. A realistic budget set for the whole family, would take much of the guesswork out of sending remittances. The need to communicate proper money management to family members, no matter how difficult. Some of these can even be hard rules. “For instance, spending on non-essentials can only be made once money has been allocated and spent for necessities,”.
3.Start investing, no matter how small. “Offhand, pooled funds like mutual funds and UITFs are good investment programs for the OFWs as they are simple to start with and fairly easy to understand,”.
Later on, OFWs can get into more complex investments like real estate, which is a good option for Filipinos looking for a passive income. They can rent out the property, even from abroad, since there are brokers who are always available and some condominiums even have an in-house property management for rentals.
Tips by finance guru Randell Tiongson.
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