According to the Philippine Statistics Authority (PSA), there are more than 10 million ethnic Filipinos living abroad and most of them are overseas contract workers (OCWs / OFWs). These OFWs send billions of dollars every year in personal remittances to their families back home. Though most of these OFWs had much higher income compared to their counterpart in the Philippines, but only few of them had actually save or invest their hard-earned money for the future due to lack of financial literacy.
So to help these modern day heroes, below are 8 Money-saving tips for OFWs;
(1) Be positive to save.
With all the necessary situations that need to be paid or bought, an OFW might find it difficult to save money. But he must choose to save and continue with his decision no matter what happens.
(2) Never overspend.
Before you buy something like a new watch, new gadget, new dress, make sure that you can really afford it. It must be within your budget. If you buy anything that is too expensive for your budget, you will only create a problem for you.
(3) Save then invest.
First step is to save little by little in a bank. Your money may not earn interest right away but you can be assured that you have something to fall back on in times of emergency. When you have saved enough, you can find ways on how to invest and make your money grow.
(4) Write down things you need to buy weekly.
Make a weekly list of things you need to buy and use. Make sure all are necessary.
(5) Have an inspiration why you want to save.
Ask yourself why you want to save money? What will you do once you reach enough amount for savings? You may be saving to buy a house, a car or anything else.
(6) Savings is a family matter.
It is important that you talk to your family about your plan to save money. Make them do their part in spending wisely and understanding family budget.
(7) Do not fall victim to vices.
Alcohol, smoking, shopping these are forms of vices. If you don’t discipline yourself, it might be too late to realize that you have spend too much amount on these.
(8) Credit cards.
At first it seems like having credit cards is easy but in truth it is not. It has interest rates that pile up if you don’t pay right away your balance.
If you can and if you have, it is better to use cash when you buy something or you dine out.
[ Source: OFWinvestments ]