5 Money-saving Tips for OFWs
Halos lahat ng Pilipino nag-iisip na kapag Overseas Filipino Worker (OFW) ka, mayaman ka na at marami ka ng savings dahil naka-abroad.Halos lahat ng Pilipino nag-iisip na kapag Overseas Filipino Worker (OFW) ka, mayaman ka na at marami ka ng savings dahil naka-abroad.
This is not always true. Often, families with members working abroad tend to spend more and save very little—or none at all.
The kind of sacrifice OFWs make, working in a foreign country and leaving their families behind for the chance to earn more money and secure a better future for their loved ones has earned them the title ‘modern heroes’. If you’re are an OFW yourself, it is your responsibility, as well as your family’s, to make sure that all the sacrifice and hard-earned money don’t go to waste.
Here are 5 money savings tips to make sure you earn your financial freedom.
Implement 100 -20-10=70 money rule.
Value your hard-earned money, and this rule might help. This is where you deduct 20% of your salary for savings, then 10% for tithes and the remaining 70% is the only amount available for spending.
Have an emergency fund.
This fund should be the first one to build which is in the form of savings account that you can withdraw anytime. If you ask how much, then it will depend on your spending habit but mostly it’s around six (6) months of your current salary. This fund will be used when you have emergencies or have decided to resign from work. It will tide you over the period wherein you don’t have regular income.
Insure yourself and Invest in stock market or mutual funds.
When you already have an emergency fund, then a part of the 20% savings can go to insurance or investment or any money vehicle that can help you generate passive income even when you are sleeping. If you have a chance, read Bro. Bo Sanchez’ book, “My Maid Invests in Stock Market”, to get more ideas on how to invest.
Tithing is giving some amount of money to your church. I believe that God is so generous that he can give this back a hundredfold, “siksik, liglig at umaapaw ika nga”. This is very hard at first, thinking that 10% of your hard-earned money will be given away. God is giving us so many blessings in life so we also have to share it to those who are helping us in our spiritual growth. It will come back to us multi-fold.
Spend only 70% of your salary.
Kahit madaming sale at madami kang gustong bilhin gadgets, clothes or jewelry, huwag kang bumigay. Live within your means. The remaining 70% of your salary after savings should be used to cover all your financial obligations. This amount will be divided accordingly depending on your recurring expenses which are not limited to housing/rental, food, clothing, entertainment, “padala” to family and relatives, travel, school fees, daily allowance, transportation etc.