For many OFWs, the huge income they earn abroad makes it worth it to use their skills and talents in foreign lands instead of their own country.
So despite the fact that they have to make the sacrifice of leaving their families behind, they jump into the overseas employment opportunity to ensure a better future for their loved ones.
Eventually, they get hold of their paychecks and they get to reap the rewards. They feel empowered for becoming a better provider. Also, they will finally be able to buy anything they want for themselves without having to worry too much about it.
If you are currently in this position, you have to remember not everyone who worked abroad for years eventually succeeded in their post-OFW lives. There are great risks in earning a lot if you are not wise in handling your money.
Here are 5 common financial pitfalls you need to avoid if you want to handle your money correctly:
- Having A “One-Day Millionaire” Attitude
Having a “one-day millionaire” attitude can be risky. Never fall into the temptation of splurging all your earnings at once. Remember that you are in a far country and that many of your loved ones depend on your support. While there is nothing wrong with treating yourself from time to time, you need to know your limits and exercise self-control.
- No Long-Term Financial Plans
It follows that if you are a reckless spender, you likely do not have any long-term financial plans. Again, you have to realize that your true purpose of working overseas is to secure your family’s future. That should guide you not only in your current expenses but also in how you can still benefit from your earnings several years from now.
- Saving Only When Something’s Left of the Salary
Another financial error is the tendency to only save what’s left of the salary at the end of the month. Instead, you should make savings a priority. Reversing the process and committing to keep a fixed portion of your money each payday will yield better results.
- Not Investing At All
Let’s face it – you can’t depend on your overseas employment forever. You may be enjoying your career but you have to consider other alternatives as well. Try investing your money on worthwhile endeavors (for example, establishing a small business in the country) so you have a fallback in case things go wrong and you unexpectedly lose your job.
- No Money Management Skills
Creating a monthly budget and sticking with it can be for your own good. That way, you always know where your money will go. You will not be surprised at the end of the month that you no longer have any money on your pocket. If you want to go the extra mile, track your daily expenses and see how you’re doing compared with your intended budget. You will rarely encounter money hassles if you do this consistently.