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Make Sure You Do These Things Before You Leave the Philippines

Working overseas is not easy. There are lots of uncertainties and you will never know what could happen to you while you’re there. You also need to attend trainings, process documents, and ensure that your family is safe and secure while you are abroad.

Accomplishing many things can be overwhelming, especially before you leave. Don’t worry. These crucial steps, including how to manage finances, will help you prepare before you leave:

1) Complete your travel documents. 

Before you leave, make sure you fill out completely and prepare all your travel documents, including passport and VISA. After all, any mistake not only costs you time but also money since processing fees are doubled.

You might sat that your employer will shoulder the processing costs. Fine. Still, completing all travel documents beforehand saves you against hassle and wasted time.

2) Make sure you have emergency money. 

Many new OFWs are guilty of this: no pocket money.

Keep in mind that when you are deployed to another country to start a new job, you don’t have money or income for at least one month. Even if you received your income after a month, that won’t be enough to help you survive since you might end up sending most of your money back home, coupled with the challenges of establishing your finances abroad.

If you can, save at least two months-worth of salary. This will give you enough buffer as you go through the adjustment period. You may also want to avail of an OFW Loan from Balikbayad to help you as you settle abroad.

3) Establish a budget – and how much money you will send back home. 

Earning in dollars does not always guarantee a good life. To make sure you can live a good life, you need to plan your spending and establish a budget, remittance included.

Before you leave, make sure you research about the cost of living in your country destination. Maximize the information you can find online to help you prepare for the expenses, including food, transportation, and rent (in case accommodation is not included).

Since you are in the process of setting up your budget, make sure to include monthly remittance as well. When it comes to remittances, it is important to establish not only how much money you will send back home but also the remittance provider you will use that will give you more savings.

Check this post to know more about remittance tips. 

4) Take care of your existing financial obligations. 

Did you borrow money from a relative? Did you apply for a loan to pay off your child’s tuition fee? Whatever financial obligations you have, make sure to do your best to pay them off before you leave. This will save you and your family against financial distress too.

Short in cash? Then consider getting a loan from private trusted lenders like Balikbayad. You get to enjoy low interest rate too.

5) Setup a bank account in the Philippines. 

This is important. Several banks such as BPI and BDO offer savings account facilities for OFW, which you can also use for remittance purposes. Setting up a bank account allows you to manage your income, transfer money with ease, and even pay bills even if you are thousands of miles away. It’s more convenient too.

Check out this post to learn about the banks that offer Savings Account with Remittance feature.

Keep in mind that preparation goes a long way. Take note of these five tips and you are on your way to a less stressful transition when working overseas.  

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The Different Aspects of Financial Planning for OFW

Many OFWs agree on one thing: they work abroad for money. Money could help provide a better and more secured future for the family, which is why you are willing to make that sacrifice.

Here’s the thing: working overseas and sending money back home are just the first two steps in achieving financial freedom. In fact, many OFW families are either financially broke or have no sufficient savings or investment – and surely, you don’t want to be one of them.

The key here is proper financial planning. Here’s what you need to know about and how to start with financial planning: Financial Planning for OFW

Monthly Income

Admit it. Earning in dollars gives you a sense of pride and fulfillment, knowing that you can provide better for your family. Still, don’t let the dollar sign in your payslip forget the reason why you are working overseas and spend more than your usual.

Keep in mind that the cost of living in other countries is higher compared to the Philippines. Before you splurge, make sure you get to know the place where you are assigned. Check the prices of essential goods, cost of rent (if house is not provided), food, and transportation. If time permits, consider getting a second job for added income.

Budgeting

Now that you identified how much you will be spending, it’s time to set a budget. It may not seem a lot, but budget can be a lifesaver. It teaches you the value of discipline since you set aside portion of your earnings for equally important things. At the same time, it helps you keep track of your spending and allows you to adjust certain areas in order to save more.

Start by listing all your expenses everyday, no matter how big or small your purchases are. Make this a part of your daily routine until you are able to create a realistic budget.

When it comes to budget, make sure you won’t miss this next part.

Remittances

Sending money back home is mandatory. In fact, this will always be part of your budget. Still, here is something you need to remember: don’t send all of your earnings.

Many OFWs send more than half of their salary and leave little for themselves. This may be a selfless act, but you’ll end up with nothing when the real emergency comes in. Include remittance in your budget, but make sure you consider other expenses too. You may be earning in dollars, but it is not your sole responsibility to provide for the family – and the rest of your relatives.

Savings

Since you set aside money for remittances, make sure you leave something for savings as well.

To make it easier for you to save, think of a goal you want to achieve by the end of your contract. It could be a new car or a small business for your family to help augment the expenses. Use that as a motivation to encourage you to save more.

Here’s a tip: open a savings account, preferably with online banking facility. If you can, don’t inform your family about this, so you won’t be tempted to withdraw anytime. Transfer portion of your earnings and do your best not to use the funds. Consider this as your emergency fund so you have something to use in case of rainy days.

Investment

Don’t limit yourself with savings. If you want to attain financial freedom, you need to be wise with your investments too.

Many OFWs are scared to invest, saying that they don’t understand what investments are or how the stock market works. The good news is there are many information available in the Internet, which gives you a crash course about the different investment options. Read about them during downtime and familiarize yourself to know more about what’s best for you.

Since you are into investing, remember about your goals on why you want to work overseas. Similar to savings, this is also a good motivation to encourage you to work harder and fastrack financial freedom.

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Money and Saving Tips for the New OFWs

Every year, thousands of Filipinos are deployed in various areas around the world to work for better opportunities. Every year, thousands of new faces with variety of skill level join the OFW workforce.

If you are one of them, don’t be too excited. Working overseas allows you to earn in dollars, but this doesn’t mean you should spend money in whatever way you want it and just to keep your family happy. If you are one of the new OFWs deployed, then this one is for you. Below are money and saving tips you need to remember to get the best out of your employment without compromising your financial future:

1) Don’t send everything and set aside for savings. 

Most, if not all OFWs will agree on this: the main reason why they work abroad is to provide a better life and future for the family. OFWs earn in dollars, thereby allowing you to earn more than what you can get back home.

Still, don’t use the “I’m earning in dollars” excuse to send everything to your family and leave almost nothing to savings. Being an OFW, although is a privilege, is still full of uncertainty. Anytime, war or crisis may happen that could cut your “trip” and send you back home. You don’t want to go home with almost nothing in your pocket, so make sure you set aside a portion of your salary for savings.

This leads you to the next tip.

2) Open a bank account specifically for savings. 

According to the latest Consumer Finance Survey of the Bangko Sentral ng Pilipinas, 1.6 out of 24 million households have less than P5,000 in their deposit account. Worse, not many households maintain a deposit account since they don’t have enough money to open one.

Don’t be one of them.

Even before you leave, make sure you already opened a deposit account, preferably with online transfer facility, exclusively for savings. You can remit directly from that account, which could come in handy in case of emergency.

Check out this post to know more about banks that offer Savings Account for OFWs.

3) Take it easy on shopping. 

There will always be a temptation to buy new clothes or gadgets and send it back to the Philippines. That’s okay. The problem lies when you always give in to temptation.

The best way to address this is to plan your shopping. Wait for sale, consider buying in thrift stores, and only spend within your budget. After all, your son won’t need new basketball shoes every month.

4) Share a room with fellow OFWs. 

You’re abroad and living the life, and that’s good. Still, this doesn’t mean you should live on your own as well. Unless your employer provided housing arrangement, consider sharing a space with fellow Filipinos. Renting your own place can be costly. When you share a place with a few people, you will be able to defray the expenses since you share the costs with few more heads and save more for the rainy days.

5) Don’t follow the crowd. 

You saw your housemate bought a new iPad for his daughter while your other housemate has a balikbayan box full of clothes and shoes for his family. It is tempting to do the same and you surely want to give that to your family.

The problem is you can’t afford it and that’s okay. Don’t keep up with the crowd just to save face. It’s okay if you can’t splurge on your family now. There’s nothing embarrassing about it. Instead, use that as a motivation to work harder.

6) Set your goals and stick to it. 

There is a reason why you went abroad. Aside from providing a better future for your family, you also want to achieve certain goals in life and working overseas can be a stepping stone towards that. Life as an OFW is not easy, so make sure you set your goals, set your eyes into it, and work hard in order to achieve it.