5 Common Money Mistakes OFWs Make — and How to Avoid Them
Every year, thousands of Filipinos leave the country to work abroad. Today, millions of Overseas Filipino Workers (OFWs) are scattered across the globe, driven by the same goals — to support their families, secure a better future, and achieve personal growth.
Working overseas often provides higher income that allows OFWs to support their families, save, and even invest. However, not everyone is able to manage their finances wisely. Some still struggle to save or control their spending despite earning more. How can this be avoided?
Below are five common money mistakes OFWs make — and practical ways to solve them.
1. Spending More Than You Can Afford
One of the most common mistakes among OFWs is overspending without tracking where the money goes. Many feel obligated to send large remittances every month, often prioritizing family needs over personal savings. While it’s admirable to support loved ones, it’s equally important to secure your own financial future.
How to avoid it:
Have an open discussion with your family about the specific amount you can send monthly. Encourage them to budget wisely. Set aside a portion of your income for emergencies and investments that can provide long-term financial stability.
2. Overspending on Yourself
After years of hard work, it’s tempting to reward yourself with luxuries you couldn’t afford before. However, some OFWs go overboard — buying unnecessary or expensive items that quickly drain their earnings.
How to avoid it:
There’s nothing wrong with treating yourself occasionally, but learn to live within your means. Focus on saving first before spending. Your savings can serve as a financial cushion during emergencies or as capital for future investments.
3. Spending to Impress Others
Many OFWs fall into the trap of overspending when they return home — buying “pasalubong,” hosting lavish parties, or covering expenses for family gatherings. This is often due to social pressure and the fear of being called “kuripot.”
How to avoid it:
Remember that your family and friends will understand if you choose to be practical. Giving gifts is fine, but don’t spend all your savings on one visit. Prioritize your long-term financial security over temporary applause.
4. Skipping Insurance
Many Filipinos view insurance as an unnecessary expense — but for OFWs, it’s a necessity. Life and health insurance provide financial protection during unforeseen events, which can be especially critical when living or working abroad.
How to avoid it:
Dedicate a small portion of your salary to insurance coverage. Think of it not as an expense, but as a safety net for you and your family.
5. Neglecting Retirement Planning
Some OFWs delay saving for retirement, assuming they still have plenty of time. However, no one can work forever. Without proper planning, many return home with little savings and no long-term security.
How to avoid it:
Start saving for retirement as early as possible. Check if your employer or host country offers retirement plans, or set up a personal retirement fund. The earlier you start, the more financially stable your future will be.
Final Thoughts
Avoiding these financial mistakes can make a big difference in your future. By learning how to budget, save, invest, and plan ahead, you can secure a more comfortable and stable life for yourself and your loved ones. Financial literacy is key — and every wise decision you make today brings you closer to a brighter tomorrow.
