Every year, thousands of Filipinos leave the country to work overseas. Millions of OFWs are working in different parts of the world. We all know the reasons why they choose to work away from home – to support the family needs, to have a brighter future, and personal growth.
Working overseas provides enough amount of salary that can be used to support the family, save, and invest. However, there are some OFWs who cannot still save or can’t control how much they spend the money they are earning. How can it be avoided?
5 Common Money Mistakes and How to Solve Them
1. Spending more than you can afford
Common mistakes of an individual or an OFW is spending too much, and not realizing they are not saving money or investing. They feel obligated to send remittances every month, without closely monitoring where their money goes. As a breadwinner or the one who is earning higher enough in their families, they have no choice but to send money regularly to support the family, and sometimes they fail to save money for themselves.
To avoid this, have a personal discussion with your family about on how much specific amount of money you are going to send to them every month, make it clear to them to spend the money wisely. You need to save money for emergency purposes and invest in a business to earn additional income.
2. Spending too much on yourself
This is also another common mistake. Some OFWs spend too much because they are confident that they are the one who is earning more. They tend to buy the things they really wanted from their previous work not realizing that they are spending money for unnecessary things. But it is not bad to buy things to treat yourself once in a while; you might be focused on buying expensive things higher than your salary.
Here’s a tip: Save more instead of spending money, this way you can live your life simple but insured. You can use your savings in case of emergency or investments for extra income.
3. Spending to impress others
Many OFWs get into the habit of bringing “pasalubong” (treats) every time they go home as well as shouldering expenses for lavish feasts or parties. After all, they would rather spend too much than be called “Kuripot” (miser) by their families and friends. The fact that most Filipinos seem to think that OFWs are “rich” only perpetuates these habits.
While there is not wrong with giving treats to your loved ones, spending all your savings on one “gimmick” after another is wasteful. You wouldn’t want to be broke after you vacation right? Besides, your family and friends will understand if you’re not extravagant with money.
4. Not having insurance
Most Filipinos eventually don’t have insurance because it seems like an additional expense including also OFWs. Having insurance is very important especially to OFWs because we are not sure about the future. If emergency might occur, life insurance or medical insurance is a very big help. Consider giving a part of your salary for your insurance.
5. Not preparing for retirement
Most Filipinos don’t consider the fact of saving money for retirement because of lack of salary earning and thinking they have still plenty of time. Remember you cannot work forever; the time will come that you can no longer perform the job you are working because you are already old. As early as now, you must consider applying for a retirement plans with your employer or your country of employment.
Avoid making these mistakes in order to save money for emergencies and for investments. You can also read about financial literacy and management. With this, you are insured to provide a brighter future for your family.