How to succeed as an OFW

There are many Overseas Filipino Workers who work abroad for many years but are not successful and no investments were acquired by the time that they have already retired.

The worst situation is that there are some OFWs who have been in an accident overseas which prevented them from working again. Regardless of working in or outside the Philippines, Filipino worker should know how to value his labor and sacrifices while aiming for his dreams.

The following tips are worth reading that will serve as guides for typical Overseas Filipino Workers. Information given is based on my own experiences and from the experiences of other fellow Overseas Filipino Workers.

1. Do not spend too much of your income. Not because you are earning big now and you have extra money, you are going to spend too much for your vices and unnecessary things. Some Filipinos who are only on a temporary working visa are buying luxury and brand new cars which I think is not necessary. If your earnings are high, it should be okay but I know some Overseas Filipino Workers who buy expensive and brand new cars but do not have any investment on important properties yet. They could not even eat proper meals anymore as luxury is more important to them. They are not thinking that their job abroad is just temporary, anytime they can be sent back home if some unpleasant situation happened such as war, bankruptcy, slow economy or as I have mentioned above, when they become paralyzed and couldn’t work anymore after an accident.

2. Always keep some income for savings. Save some of your income in Philippine banks as well as banks in the country where you work. And because you will stay abroad for about two years or more, it’s better that you’ll keep your money in a term of savings where you can earn more interest such as Time Deposit or Funds. Some Philippine banks offer special savings program for Overseas Filipino Workers and their beneficiaries.

3. Obtain pension plans for retirement, savings fund, children's educational plan, health insurance or life insurance. Get more if you can, although you already have the OWWA Benefits or Social Security Insurance (SSS) or Pag-Ibig, it is also better to get another one from private insurance company.
It is not always safe to work anywhere, you will never know if you can have an accident in the future that will prevent you to engage in any kind of jobs again. Having some insurance is always a big help.

4. Once you start receiving your salary and suppose you have no debts to pay anymore, make sure you would invest in a property first. If you will buy some property, its’ value does not go down; it's always accumulating or increasing every year. House and Lot or Lot is the best investment of all.
5. If you want to build a house, unless you already got many houses, it is better to build an apartment first to have some additional income. Your wife/husband is in Philippines can take care of your property in case you want them to be a commercial or residential apartment for rent.
If you are earning from the rental of your apartment, you may now save your income and with some additional money from the last few years of working abroad, you can build a new house again for your family.

6. Do not give so much allowance to your beneficiaries that could only make them spend your remittance for unnecessary things as well. You should let them know how hard it is to work in a foreign land and earn that money that you are sending for them. You should let them know how to spend wisely as well.
Do not stay quiet or ashamed to tell and explain how hard it is to work as Overseas Filipino Workers abroad to your family. If they do not know about your real situation, they would just think that you are just "collecting" money while you're walking on the road. So, they would just spend your remittance on things that are unnecessary.

7. If you cannot bring your family while you are working abroad and your vacation is not yet due, why not try bringing them to your country of work. Sometimes, you need to spend a little to maintain the relationship and bonding of your family.

8. If you are on vacation, do not spend all your savings thinking that you still have a job in abroad upon returning there. It is not always like that. I have someone that I knew, who had bought brand new car, spent most of his savings while on vacation but by the time that this fellow overseas Filipino worker is now going back to work abroad, his employer's company suddenly closed. He did not know that the company was already failing and facing bankruptcy.

9. Rather than spending too much of your savings on less important things, just improve your skills. You will never know that your current job will still be on demand after one or two years. You should try to be knowledgeable of other types of skills and profession.
If you are a carpenter, acquire some skills that could help you to become a contractor just in case you want to have your own business and would like to get your own carpenter to do the jobs.

10. Do not start your own business if you do not have any idea about the business. Do not just listen with other people’s suggestions, think about it. It is not because having an Internet Cafe is one of the good businesses these days, you will engage yourself with that same business even you do not know anything about computers.
If you have an experience in carpentry jobs, start business that is related to carpentry such as cabinet making, construction materials retail, painting etc. Do not engage in other kinds of business unless you have also experienced it before. This is not the proper way to do business. Put up a business that you are familiar with and that you most love to do.

Tips and advice above are just guide and suggestions for Filipino Workers. It's still up to the person if he/she would like to follow other people's suggestions. Not anything that had happened to you is other people's responsibility it's your own responsibility. ..

Spend wisely to build wealth

Spend wisely to build wealth. Almost everyone has the ability to become financially secure, even the ordinary, low-income employees. But you need to break out of the habit of reckless spending in order to start saving.

We hear it all the time. Filipinos complaining that they are unable to save because their income is barely enough to provide for the needs of their families. In fact, many grumble that they are neck-deep in debt. We have also heard of stories about seemingly ‘rich’ people who have 6-digit monthly earnings, nice, big houses and flashy cars yet are in a financial mess just like many of our poor kababayans. This just goes to show that anyone can be broke regardless of how much they earn.

On the bright side of this sad reality is an encouraging fact; that almost everyone has the ability to become truly wealthy or at least financially secure, even the ordinary, low-income employees. Unfortunately, only a few has the discipline and commitment to actually go for it. Majority of Filipinos have very poor spending habits and seem to have been programmed to spend & spend. They need to break out of this habit in order to start saving, which is the foundation for building wealth. Without any savings there’s no way that you can attain stability in your personal finances.

Filipinos are so used to living from payday to payday that they have become quite “skilled” at spending all the money that gets into their hands even if there is no compelling reason to do so. The huge billboards along EDSA, glossy & colorful print ads & the cool commercials with catchy tunes on TV and radio aggravate this culture of irresponsible spending in our society. One newspaper ad even elevated splurging to a divine act, declaring “to shop is human, to splurge divine!” It is no wonder then that people spend first before thinking about saving; a recipe that can lead to financial disaster. Almost always there’s too little or nothing is left to save after making all those payments and purchases; sometimes for things that people don’t really need.
There’s no magic formula for having enough money to save, only one simple solution: spend less than what you earn. In an environment that encourages spending this is easier said than done. Nowadays, it’s even possible to spend more than what you earn with that “plastic” inside your wallet. If you do not keep your expenses from going through the roof, not only will you have zero savings (which scuttles any chance of you getting rich), but you could soon find yourself in a debt hole that’s very difficult to escape. Fortunately, there are practical & “common sense” measures you can take to help you control your expenses and start living beneath your means.

First, take a long, hard look at your current lifestyle. Many people have a lifestyle that they really can’t afford. Many “rich looking” people have become a financial wreck because of their extravagant lifestyle. If you regularly find yourself unable to make ends meet or you’re sinking deeper and deeper into debt despite a big income, a change to a more modest lifestyle may be necessary. Often it will just take little changes to get you on the path to financial stability.

Second, know where your money goes. You can’t manage what you don’t know. Try to list down your expenses for the past 2 months. If you can’t accurately recall them you need to keep track of your daily expenses for the next month or two to give you a good idea on where your money is going. Every day record every expense you make including even the small items like candies, sticks of cigarettes and jeepney or bus fare. At the end of one or two months examine your list. You will probably be shocked to find out that you are spending way too much on things you can do without.

Third, cut down or eliminate unnecessary expenses and you will instantly have money available for savings. Smoking a pack of cigarettes a day may not seem to cost very much. But it would add up to about P1.2 million in 30 years if you would save & invest the money you get to keep by quitting smoking. Do you really need a daily dose of high-priced cappuccino? Cut in half your craving for it and you’ll be more than a million pesos richer 30 years into the future. There are many other things you can live without: alcohol, drugs, designer wear, excessive chatting & gaming at computer shops, too much texting, all forms of gambling, expensive hobbies, etc. Do your health and your pocket a big favor by getting rid of these.

Fourth, create a spending plan and stick to it. A spending plan (a.k.a. budget) helps you control and manage your personal finances. Set a budget for your expenses based on the list you made in steps 2 and 3 . But before anything else, set a budget for your monthly savings. Remember to always pay yourself first. Start with a manageable figure, say 5% of your income, and gradually increase it once you get the hang out of saving. Building wealth doesn’t mean you will have to eat instant noodles the rest of your life so set aside a little amount for leisure activities and for buying some “nice to haves.” A budget will be useless if you don’t stick to it. Make every effort to stay within your budget and do not overspend.

The road to financial stability and wealth is not an easy one. Learning to spend wisely will make your journey a little easier. Remember, almost everyone has the ability to become rich and the choices we make today will determine our financial health in the future. Make the right choice!