How To Effectively Manage Your Money As An OFW
You are not a human ATM.
It’s hard to admit that you’re not earning as much as your family thinks you are. But if you’re not vigilant enough, you’ll never be able to prepare for your future no matter how hard you work.
Although your choice to work outside of the Philippines to serve your family may have a certain truth in it, you mustn’t forget to leave a portion of your income for yourself.
In the book, The Richest Man of Babylon, Arkad says, that to be rich, one must save at least 10% of his income and use it as a means to invest in stocks, high-end real estate or profitable endeavors, and make money work for you. If you’re going to spend everything for your family, personal, superficial wants and needs, eventually you would have to seek for financial assistance.
Ideally, the person you should seek assistance in is yourself. And that effort can only be reaped if you start investing early on stocks and real estate properties. (Find high-end real estate properties in Davao)
It may not be a big deal to you, but segregating your income and savings account is a small change that can save you from tempting impulsive purchases. Some OFWs also prefer to open a bank account in the Philippines to completely cut them off from spending a large chunk from their savings. By segregating your money, you are able to minimize your spending - successfully saving 10% of your income in a separate bank account.
Budget thy expenses that thou mayest have coins to pay for thy necessities, to pay for thy enjoyments, and to gratify thy worthwhile desires without spending more than nine-tenths of thy earnings.
Another quote from the best-selling book, The Richest Man in Babylon speaks of the importance of budgeting your income. By budgeting your income accordingly, ironically, you give yourself more freedom to spend for things of greater value in the future.
Anything that can be touched, worn and displayed is barely an investment because almost all superficial items depreciate in value. In financial terms, investing your money means making your money work for you by putting it in profitable areas that generate increased value. You can invest your money in:
Davao City is one of the growing cities in the Philippines today. Large companies are starting to invest in the city because of its low start-up costs and its extremely high potential to top productive cities in the country. Moreover, a lot of real estate properties in the Philippines are owned by OFWs because of its higher potential for higher returns, stability and inflation hedging compared to other types of investments.
It’s hard to admit that you’re not earning as much as your family thinks you are. But if you’re not vigilant enough, you’ll never be able to prepare for your future no matter how hard you work.
Although your choice to work outside of the Philippines to serve your family may have a certain truth in it, you mustn’t forget to leave a portion of your income for yourself.
In the book, The Richest Man of Babylon, Arkad says, that to be rich, one must save at least 10% of his income and use it as a means to invest in stocks, high-end real estate or profitable endeavors, and make money work for you. If you’re going to spend everything for your family, personal, superficial wants and needs, eventually you would have to seek for financial assistance.
Ideally, the person you should seek assistance in is yourself. And that effort can only be reaped if you start investing early on stocks and real estate properties. (Find high-end real estate properties in Davao)
How do you effectively manage your money as an OFW?
Segregate your Income and Savings Account
It may not be a big deal to you, but segregating your income and savings account is a small change that can save you from tempting impulsive purchases. Some OFWs also prefer to open a bank account in the Philippines to completely cut them off from spending a large chunk from their savings. By segregating your money, you are able to minimize your spending - successfully saving 10% of your income in a separate bank account.
Budget your Income
Budget thy expenses that thou mayest have coins to pay for thy necessities, to pay for thy enjoyments, and to gratify thy worthwhile desires without spending more than nine-tenths of thy earnings.
Another quote from the best-selling book, The Richest Man in Babylon speaks of the importance of budgeting your income. By budgeting your income accordingly, ironically, you give yourself more freedom to spend for things of greater value in the future.
Invest Your Money
Anything that can be touched, worn and displayed is barely an investment because almost all superficial items depreciate in value. In financial terms, investing your money means making your money work for you by putting it in profitable areas that generate increased value. You can invest your money in:
- Mutual Funds, Bonds and Stocks
- Life Insurance
- Emergency Funds
- High-End Real Estate Property
Davao City is one of the growing cities in the Philippines today. Large companies are starting to invest in the city because of its low start-up costs and its extremely high potential to top productive cities in the country. Moreover, a lot of real estate properties in the Philippines are owned by OFWs because of its higher potential for higher returns, stability and inflation hedging compared to other types of investments.
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