Many Filipinos choose to work overseas in order to provide better finances for their families in the Philippines. Fortunately, most of the Overseas Filipino Workers (OFWs) are able to meet that goal and earn higher incomes abroad.
Sadly, however, one out of every 10 OFWs are broke. Moreover, 80% of OFWs return to the Philippines without any savings.
With the financial pressure to provide for their families in the Philippines, some OFWs end up broke because of their unwise financial decisions.
If you are one of those OFWs who are experiencing financial difficulties, it’s not too late yet.
Here are 5 Financial Goals every OFW Should Aim For:
1. Be debt-free.
Many OFWs have loans and debts as a result of poor financial choices. Although they earn significantly higher incomes as compared to local Filipino workers, many of them are still financially burdened because of poor financial decisions. Some OFWs spend a lot of money on unnecessary expenses and even accumulate more debt because they feel that they have to provide everything for their families. Try to avoid loaning for money just because you can eventually pay for it. Try not to spend too much on unnecessary purchases. Every OFW should aim to be debt-free by setting aside a portion of their income to pay their debts.
2. Plan and prepare for your retirement.
OFWs must plan and prepare for their retirement and start growing their retirement fund once they start earning abroad. There are many online calculators to help you compute how much you will need when you retire and live the kind of lifestyle you want to have.
3. Accumulate diversified investments.
There are many ways to invest your hard-earned income aside from investing in real estate. Banks and brokerage firms also offer different kinds of investments such as UITFs or unified investment trust funds. Insurance companies also offer mutual fund investments. It is always wiser to have diversified investments instead of putting all your eggs in one basket.
4. Create multiple income streams.
Find other income opportunities where you can use your talents while earning extra income. Some OFWs invest in businesses in the Philippines, others, however, use their spare time working freelance.
One popular OFW who was able to utilize her talents is Xyza Bacani, a domestic helper in Hong Kong, who even won won the prestigious Magnum Foundation Human Rights scholarship to New York University.
5. Train your loved ones to be independent from remittances.
One of the primary reasons why many Filipinos choose to work abroad is because they want to provide a better life for their family. However, OFWs must also keep in mind that they would need to retire eventually and may not be able to provide for their loved ones like they used to working abroad.
Train your loved ones to become independent from remittances. Support them in their personal and professional goals while teaching them to learn the value of money. Don’t always give in to all their requests and train them to also learn how to create income opportunities. By training them to value and earn money, you won’t need to work your lifetime abroad supporting them, and they too would be able to help others in the long run.
Every OFW has his own reason and purpose for leaving the Philippines to work abroad, and the common goal of each one is to provide a better life for the family. Remember to make wise financial decisions while you have the opportunity to earn more than enough. Setting these goals will help you and your family in the future.
Source: GMA News