Effective steps to save up and tips on how to invest for OFW’s.
Did you ever ask yourself the main reason why you are working? Have you ever thought of having a goal to retire early and enjoy the fruits of your labor? Well, if you don’t have that kind of mind set, you must reflect on the first question. We were not born to pay our bills and settle our loans. We must have the right blueprint for our future and it must be bonded with correct timeline. Some even work abroad just to earn more. For Overseas Filipino Workers, can you afford going home with zero balance on your bank account and retiring without even a single centavo? If you answer is no, better take note of these effective and simple ways on how to manage your money and tips on how to invest, as also featured in an article on imoney.ph.
Prepare a contingency plan– What if you suddenly lost your job? Are you prepared to support yourself and your family? Since you are an OFW, you are prone to recession. The most appropriate way to battle this problem is to set a timeline on when to stop going abroad to be an employee and put up your own business instead.
Avoid unnecessary loans- If your objective in filing for a loan is to buy a new car just to show off or a new gadget just to fulfil your ego, then you might be digging your own grave of debts. Make sure that before you file for a loan, you already considered its purpose and urgency. There are investments that can wait and give you time to save. On the other hand, there are emergency situations that would require you to use your borrowing capacity. If it’s really an emergency in all its essence, then it might be a considerable reason for you to file for a loan. The application and use of credit cards is also a subject that needs to be discussed in this bullet. If you have even one percent of doubt that you will be a responsible credit card holder, better not to apply. It is better to get from banks that offer pre-paid cards that can function like a “credit card,” but you would have to deposit some cash first. This would be a better way to control your spending if your primary concern is about online transactions and what not, which would require Visa or MasterCard.
Manage your own money– You would need to be responsible of your own profit and salary. Yes, you are working for your family, but if there is one person that would understand the value of the money you are earning, it would only be you. It’s better if you create a budget. Divide and set aside a portion for your remittance, savings, investments and others. In this way, you will also learn to value your efforts and hard work.
Impulsive buying– Learn how to plan. Do not buy your car, house and a business franchise all at the same time if you will sacrifice your lifetime savings. Make a time table setting the most important investment the soonest to the least. Let’s say you prioritize owning a house, give yourself 2 years to save and 5 years to amortize. Then, if you have pay rise you can invest for your own business and get a car after 2 years. Your plan must fit your immediate needs.
Learn the basic rule of saving- Many people save what’s left from their salary after setting aside for the expenses. While this is ideal, this is not the proper way of saving. It must be your salary minus your allotted amount for savings, and then the remaining will be budgeted to your expenses. This way, you will have a uniform amount and your plan will be more concrete. Your goal to be a millionaire in 3 years will likely be more realistic.
Know how the market works- Make sure you know the basic of putting up your own business, the market trends, investment options and other ways to grow your money. You may research several steps about investing in stocks, mutual funds and even pre-need plans with investment bundles on the internet. There are a lot of companies that can provide your needs based on your preferred budget and the plans that you have for your future.