True enough, OFWs are able to send their children to good schools, provide comfortable homes, and buy the things they need. But, in exchange for this, are the years they spend away from home.
What’s Happening Now
Every month, OFWs send a huge portion of their salary back home in the Philippines.
Whatever is left will be for their personal living expenses. More often than not, what is set aside for savings is spent for emergency expenses and other unforeseen circumstances in the Philippines.
Indeed, they are our modern day heroes. But, if this will be the usual scenario, when will these heroes be able to go home?
What Should Be Happening
Now, I am not saying that sending their salary at home is wrong. In fact, the main reason that OFWs leave the country is to be able to provide a better life for their families.
But OFWs should remember to pay themselves also by setting aside a portion of their income for savings and investments.
The 10-20-70 principle will help them accomplish this. (Read more about it here: How to Budget and Save Wisely)
A huge portion of their salary or 70% can go to their remittances to the Philippines and for other expenses. They can use the 20% for their investments. And lastly, the remaining 10% can go to their emergency fund, tithe, or pasalubong when they go back home.
This way, they will be able to balance their finances and have the peace of mind that they are doing something today for their own future.
What Should Not Happen
After working long years abroad, they go home empty-handed and without any investments.
They are the ones that assumed that after sending ALL their huge salaries back home, there would be enough for them to stop working and stay in the Philippines. They went home, without any savings and investments, and ready to retire because they were able to fulfill their duties to their families.
They should NEVER assume that someone will take care of their money more than them.
Can OFWs invest in the Philippines while they are abroad?
To prevent this from happening, OFWs should learn how to manage their money and how to properly save and invest.
A common question we receive from our OFW fans is can they invest in the Philippines while they are abroad? In this day and age where almost everything can be done online, the answer is YES they can!
For example, in the stock market, they can buy and sell their shares, and monitor stock prices just by having an account with an online brokerage firm. This is also possible for investment in mutual funds.
Every month, they can INVEST a portion of their salary in these investments using the Peso Cost Averaging Strategy. (Read more about it here: Peso Cost Averaging explained)
They can also invest in real estate, insurance, and other instruments.
The important thing to know here is to find out which investment is best suited for each one of them. No one can answer that except themselves.
- Aya Laraya of Pesos and Sense
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