Month: March 2018

Raise your hand if you want to save more money.

Let’s face it: no matter how much you try, you always end up sending a big chunk of your money back home instead of setting some aside for savings. Your family needs it more than you do. Besides, you can always save the following month, which you weren’t able to do as well because of the never-ending expenses in the Philippines.

What can you do to save extra money and leave some for yourself? These ideas might sound crazy but trust us, this works:

1. Walk (as much as you can). 

Whether it’s on your way to work or home, going to the market or grocery, visiting a friend, or going to the Church every Sunday, consider walking especially if the distance is not too far. Even if you take the bus or train, it would still entail costs; hence additional expense for you. Therefore, walk as much as you can.

The best part: you get to exercise as well.

2. Share your living space. 

Some Filipino migrant workers has designated living quarters in the company they are working with. If none is provided, then you have to look for an apartment that you can rent.

Apparently, housing expenses can be expensive. To be able to save on rent, consider sharing a space with fellow Filipinos to divide the expenses. You can also consider sharing other expenses at home like electricity, water, or Internet connection. Come up with an arrangement that is agreeable to everyone. This way, you get to live harmoniously.

3. Cook at home.

Eating out can be tempting, especially if you are tired from work and too lazy to cook. As enticing as it sounds, eating out can take a toll in your budget.

What you can do is to start a Menu Plan for the entire week, buy fresh food from the grocery or market, and then cook at home. Consider cooking in big batches and store them in the freezer so you don’t have to think about what to eat when you get home. You can also have the food for your baon at work the following day. When you do this, you can not only save more but also be sure of what you eat.

4. Take advantage of free apps for communication. 

Gone are the days when OFWs utilize overseas call to talk to their loved ones. Today, you can take advantage of the Internet by downloading apps like Viber or WeChat that allows you to talk to your family in the Philippines for FREE. Even Facebook messenger offers video call, which any of the family can readily answer because of the popularity of this social media tool.

Now that’s an affordable way to connect to your family even if you’re miles away.

5. Use cash for your purchases. 

Getting a credit card can be exciting and tempting at the same time. If you happen to have one, keep it and don’t use it. There is always a tendency to treat it as an extension of your money, which is not a good mindset.

When paying for purchases, make it habit to use cash. You are saved from paying interest or be charged with penalty fee in case of delay in the payment. Plus, you don’t need that plastic card in your life.

Are you ready to boost your savings?

You may be living the “best life” because you are in a different country and get to earn in dollars. If that’s the case, how come you still go back home with almost no savings and still have to look for another employment overseas?

There are many reasons why many OFWs are not able to achieve the life they dreamed of. Perhaps, the following reasons are taking over (which you need to do something about to maximize your stay overseas and attain the life you promised):

1. Too much or owning the latest gadgets

Your iPhone 6 is still working. Why do you need to buy iPhone X or the latest phone from Samsung?

One of the things you don’t need in your life for bigger savings is too much gadgets or buying the latest gadgets in the market. Even if you can sell the old one to a friend or send it back in the Philippines for your family’s use, the value of the gadgets depreciate, thereby giving lesser value for your money.

Unless it’s broken, keep it. After all, you will never run out of new gadgets in case you finally decide to buy one.

2. Friends or colleagues who are bad influences

“Tara, inom tayo!” “Sweldo naman. Labas tayo sandali.” 

You will always find someone who will constantly ask you out for a few drinks or to eat out. There will also be people who will nag you to buy this and that even if you don’t really want to. If you happen to come across these people, do your best to stay away from them.

Surely, they mean well, but keep in mind that your have priorities and responsibilities more than anything else. A few drinks to unwind once in a while is fine, but if this becomes a weekly habit, then you might end up in trouble – financial trouble.

3. Too much debt

Credit card debt, housing and car loan, several personal loans, online cash loans – you name it. You have it all under your belt. If you notice that you are not able to save enough or at least set aside money for your Emergency Fund, then too much loans could be the reason. To be honest, you don’t need them in your life since they will hinder you from maximizing your hard-earned money.

What can you do? Pay up. Identify the loans with highest interest rate and start from them. Try consolidating loans as well so you have to worry about one thing only. Forget about savings – for now – until you are able to reduce your debts.

READ: Loan Repayment Tips for OFWs

4. Lack of motivation to succeed

Everybody has a dream. The difference lies on the strategies that one will employ in order to make those dreams happen. As an OFW, you are not exempted to that.

Apparently, there are some who settle and rely on the monthly income they receive every month. Don’t stop there. If you want to make it big and settle in the Philippines for good, then you need to motivate yourself in order to succeed. Keep your family in mind and remember those promises you made. This way, you won’t settle.

5. Inability to say “NO” to people. 

Your cousin borrowed money because his son was sick. Your nephew requested for the latest Jordan rubber shoes and you immediately said yes. Your mother is sick so you sent money for medical expenses. Your daughter wanted a party on her birthday and you agreed.

When you say yes and give in to all requests, then you might end up with almost nothing every end of the month. Learn to say no on the right situations. Don’t worry. It’s not a crime.

They say health is wealth. That’s true. Even if you are earning a lot from your work abroad, you still need to take care of your health because you might end up using all of your hard-earned money to pay for medical bills. This is why many people are pushing the importance of health insurance especially for Overseas Filipino workers because life can be uncertain.

The next question is this: where can you get a health insurance, or at least medical assistance, that is designed specifically for OFWs? 

Here’s where:

OWWA’s MEDplus for OFWs

This is offered to OFWs who are both OWWA and Philhealth members. This Supplemental Medical Assistance Program for OFWs, or MEDplus, is a one-time financial assistance of up to P50,000 for OFWs who were diagnosed of or hospitalized as a result of a dreaded disease, either in the Philippines or while working overseas.

Dreaded diseases include but not limited to:

• Chronic kidney disease
• Liver disease
• Chronic obstructive pulmonary disease
• Ischemic heart disease

Below are the documents you need to submit:

• Completely filled out MEDplus application form
• Proof of OWWA membership contribution
• 1 passport size photo
• Philhealth Benefit Payment Notice (BPN)
• Waiver allowing Philhealth to access information, including medical records for processing of MEDplus
• Notarized SPA in case the benefit will be processed by any family member on behalf of the OFW

You can learn more about MEDplus here.

Philhealth Benefits for OFWs

Apart from MEDplus, OFWs who are also Philhealth members may receive help from the government provided that you are a registered Philhealth member, has updated Philhealth Member Data Record, membership is within the validity period, and the availment doesn’t exceed the 45-day benefit limit every year for hospital room and board allowance.

Benefits include:

• Inpatient – Hospital charges and doctor’s professional fees
• Outpatient – Radiotherapy, blood transfusion, hemodialysis, major and minor outpatient surgery, and other primary care benefits
• MDG-related – Select medical services for treatment of HIV/AIDS, surgical contraception, malaria, tuberculosis, and animal bites
• Z benefits –  Breast cancer, leukemia, prostate cancer, and the like

Here’s how you can avail of your Philhealth benefits:

If confined in the Philippines,

Simply submit the accomplished Philhealth Claim Form 1 to the hospital’s Billing Section before discharge.

If confined outside the Philippines, 

Submit the following documents to the nearest Philhealth Regional Office or Local Health Insurance Office within 180 days after you were hospitalized:

• Accomplished Philhealth Claim Form 1
• Medical abstract/record/certificate indicating the medical services given, final diagnosis, and confinement period
• Operative record if surgery was conducted
• Official receipts issued by the health facility or doctor
• Statement of Account

Take note that the confinement should be MORE THAN 24 hours, otherwise, you cannot qualify for this benefit.

Health Insurance Plans for OFWs

Aside from the government agencies, there are several health insurance companies that offer insurance plans specifically for OFWs. These insurance plans were designed with you on mind by providing products that will help address sudden and unfortunate circumstances.

For instance, BPI-Philam has a facility called Critical Care Max, which provides hospital confinement and medical reimbursement benefits. AXA Philippines also has Health Exentials product, which is an OFW health insurance plan worth up to P5 million medical benefits and covers 35 critical illnesses such as heart disease, cancer, and stroke.

These medical benefits are important but at the end of the day, one thing matters: your commitment to health. Get some rest, sleep when you can, and avoid taking excessive jobs that are too much for your body. All of those dollars are not worth it if you spend it on hospitalization and maintenance.

Have you seen the TV show On the Wings of Love? It may be a love story between the main characters, Clark and Leah, but beneath that is a story and struggle of OFWs around the world. You would see that the characters work as much as they can only to fill those balikbayan boxes and provide the needs of their family back home, even if it means taking three jobs, skipping meals, and not getting enough rest and sleep.

This is common among Filipino migrant workers, yet their families back home are not aware of it. In fact, many of them don’t know that this is what’s going on while you’re overseas:

1. They get homesick – all the time. 

Yes, they are earning in dollars and living in a foreign land, but most of the time, they get homesick. A day wouldn’t pass without them thinking of their loved ones left back home. They always count the number of days until their vacation in the Philippines and can’t wait to be back and be with their families once their contract end.

It’s difficult, but they use it as a motivation to strive and work harder. Thankfully, technology made it easier for them to see their family even if it is confined in a four sides of the computer.

2. It’s not always a bed of roses. 

Unfortunately for OFWs, it’s not a good life. As much as they want to go shopping, eat the best-tasting food, and see the tourist spots in the country they are working at, they just can’t. Most of the time, they are tired from work and will send a big chunk of their salary back home since that’s the reason why they are abroad in the first place, right?

That’s not all. There are many instances when OFWs still report to work to avoid a decrease in their monthly salary. Yes, they could provide everything their families needs, but there is always a story and a lot of hard work behind it.

3. OFWs take more than one job – a day!

They applied for a specific job just to get that opportunity to work overseas. As soon as they get there, they promise to do their best  at work. Sadly, life in the Philippines is not easy and the amount they are sending is not enough to sustain their family’s needs. As a result, they take a side job to help make ends meet. It’s a lot of sacrifice, but a sacrifice made for their families’ sake.

4. Nope, they don’t have millions. 

The peso-dollar exchange rate may benefit them, but not all OFWs are millionaires. Most of their hard-earned money is dedicated to remittance with only a little left for themselves. Even if they are taking more than one job, sometimes, it’s just not enough, so they end up borrowing money from friends or even loan sharks.

5. Sometimes, they just want to give up. 

Or most of the time, depending on the situation they are in.

OFW life is not easy. Despite the good life it could bring, there are many instances that will rock every Filipino migrant worker such as abusive employer, unreasonable pay and/or workload, a loved one in the hospital, and don’t even get started with homesickness. Still, they hold on to the fact they are doing this sacrifice for family’s sake and giving up is not an option.

What does this all mean? Don’t let the OFW family member carry the burden. Help as much as you can by alloting money for savings, budgeting the money sent, and consider investing to make your money grow.

We know you’re excited to leave for your work overseas. Finally, you can earn more – and in dollars too. At the same time, you get to step in a foreign soil and live there for as long as your contract allows you. No matter how exciting it sounds, there are certain things you need to do first to make sure your departure will be smooth sailing as possible.

This includes:

1) Check and ensure that all of your requirements are complete. 

Can you imagine yourself in the airport with all your baggages in tow, only to realize you left your passport or OEC? That’s hassle, especially if you live in the province.

Create a checklist of everything you need to make sure everything is smooth sailing. Place all the requirements and documents like passport in a separate envelope (with label), so you know where to find them. This avoids rushing come departure date.

2) Learn about your new environment. 

Going to a foreign country is exciting. Still, it is important that you get to know your new environment first before anything else. Learn about your country destination, read about their laws, rules, customs, and practices, and teach yourself their common greetings in case you’re not going to an English-speaking country. Find out about their food and look for tourist spots so you know where to go during day-off. More importantly, find out how much basic necessities such as toiletries and food cost. This will help you prepare your budget plan and allow you to leave room for adjustment.

The more informed you are about the country where you’ll work will minimize culture shock. This will make it easier for you to adjust as well.

3) Secure your money.

This is another must. Keep in mind that you will be working overseas, which means you have to regularly send money to your family back home. Although remittance centers can be helpful, there are many OFWs these days who still choose bank-to-bank transfer because of safety and convenience.

Before you leave, set up an account exclusively for remittances, preferably a bank with an online facility. Then, set up a separate account which you will use for Emergency Fund – and make sure no one knows about it. This way, you will be able to secure your money in case something happens.

4) Assign roles and responsibilities to every member of the family. 

One of the common cries of every OFW is that they shoulder most, if not all, expenses. This explains why most OFWs go home with an empty pocket because every centavo is sent back home.

You can avoid that by assigning responsibilities to every member in the family. Someone should be responsible for electric and water consumption, savings, budgeting, and even investment. It is also imperative that you educate both your spouse and children about money management so you don’t have to worry too much about money when your contract expires.

5) Prepare yourself in lifestyle changes. 

You are going outside the Philippines, which means you might not be able to see and experience the things you are used to, including the weather. This is why it is important to read as much as you can about the country destination to help you prepare for the changes in lifestyle.

More than these tips, always expect the unexpected. This is going to be a different country and you’ll never know what will happen. Don’t be afraid to ask around in case you don’t know or unsure of doing a certain activity. This is going to be a new environment, so expect a big adjustment on your part.

OFW life is not forever. That’s true. In fact, there is even a possibility that you might not even finish your contract due to uncontrollable circumstances. This is why it is important to use your money wisely and place it in something that will help you grow it.

One of them is putting up your own business.

The good thing about business is that this could help you get through everyday without having to go back abroad. The downside is putting up your own business is not easy, especially if you don’t have sufficient capital – yet. To make this happen, you decided to go to lenders to borrow money for capital.

The catch: you need to submit a business plan. 

A business plan is a document that indicates the nature of the business, financial background, sales and marketing strategies to be employed, and a projected profit-loss statement. Think of it as a roadmap that will guide you as you go through this track and what to do in case of any road bumps.

Apparently, most lenders require submission of business plan in case you are thinking of getting a business loan. How do you write it? Here’s how:

Step 1: Identify your business concept. 

Apparently, that “Eureka” moment is just one step of being an entrepreneur. This has to be followed up with a mission and vision that reflects why you want to put up this business, the product or service that will address a specific need in the market, who your target market is, unique selling points of what you are offering, and branding.

Step 2: Learn about your target market and chosen industry. 

This is a must. You need to know what your target market demands and at the same time, learn about your competitors and what they are offering. Look into the trends in your chosen industry and data about your competitors. At the same time, get to know your target market by gathering insights through social media websites. This way, you will know what the market and industry demands and find out a solution to address it.

Step 3: Create and develop your business plan outline.

It should contain the following:

• Executive Summary – This gives a brief overview of your business, nature, and your unique selling points or edge against competitors. It is also best to include your qualifications that could be useful in your chosen business.
• Marketing Plan – This should show how you will market your product or service. Therefore, indicate your market demographics, product or service offerings, analysis of competitors, and marketing strategies you will utilize to achieve sales.
• Production Plan – You need to convince the lenders that you are capable of handling a business – and this is the part where you do it. Inform lenders about the production process – raw materials, equipment, overhead expenses, and labor among others.
• Organization and Management Plan – This is the part where you convince lenders that you are worthy of credit. Indicate your qualifications and if any, experience as a business owner.
• Financial Plan – This portion shows the financial strength of your business. Include sales and profit forecast, breakeven analysis, cash flow statement, and return on investment. Since you are applying for a loan, make sure you indicate a time frame for loan repayment as well as your plan in case you of delay.

Step 4: Include supporting information. 

Legitimacy is important, especially if you will need help from lenders. Therefore, you must be able to provide and attach the following documents in your business plan to show you are serious in your business venture:

• Bank statement
• License to operate
• Business permit
• DTI certification, if sole proprietorship
• Financial documents pertaining to your business such as Contract of Lease, Purchase Order, etc.

Step 5: Review and proofread. 

The concept of business plan is to lay down your business and prove to lenders that you are worthy of credit. Now that you filled in the details, it’s time to check your work and make sure that your business plan is error-free. Review and proofread your work by correcting spelling or grammar issues and check for any typographical errors. It won’t be much of a difference, but it will show lenders that you really did your work.

“Kailangan pa ba yan?,” you might ask. Yes, especially if you plan to apply for a loan. Even if you don’t plan to apply for a loan, it is still advisable to draft your business plan that will act as your guide.

Once you’re done, you should know that Balikbayad is here to help. Submit your online loan application for pre-approval and let us help you make this entrepreneurial dream happen.

“Hindi ko yan alam” or “Hindi ko naman yan maintindihan,” says the common people. In fact, this line is abused every time people are asked about savings, investments, assets and liabilities, and any other concepts related to it.

Unlike decades ago, information has become accessible, thereby making it easier for you to learn and understand certain concepts you didn’t learn in school. At present, you can simply type a term you don’t understand and the search engine will launch thousands of information about it.

Or, you can check out these free learning resources specifically designed for OFWs:

Personal Finance Blogs that Target OFWs

Blogs are popular these days. Instead of learning about the latest gadgets, why not fill your brain tank with concepts that will help you on how to better manage your money and finances in general.

There are many personal finance blogs written by former OFWs themselves, which you can learn from. Read about financial tips, extra income opportunities, investments, or even the struggles most Filipinos experience from working overseas. Balikbayad also offers tons of tips and strategies that you can find useful, so make sure you read the blog regularly.

Online Financial Communities

Groups are everywhere. One good thing about Internet is that it allows you to connect to people regardless of location. You also have the ability to form a group with other people with the same goal as your common denominator.

Thankfully, there are financial groups online that aims to help and educate OFWs about money matters. These groups also hold seminars and trainings about anything that involves money or financials. You, the OFW or any of your family member could attend.

Examples of OFW Financial Groups are Overseas Filipino Stock Investors, which focuses mainly on stock investment, and The Global Filipino Investors, which discusses all about money matters both in the Philippines and abroad. Join any of these groups to help you in understanding the financial world better.

Entrepreneurial Development Training from OWWA

The government supports every Filipino migrant worker because of your contribution to the country. In fact, they do so with the help of OWWA.

One of the services offered by OWWA is the Reintegration Program, popularly known as OWWA Loan. Before you can submit your loan application, you will be required to attend the Enhanced Entrepreneurial Development Training or EEDT. This training, in partnership with DTI, will discuss:

• How to start, manage, and sustain a business
• Financial and business management
• Preparation of business plan
• For agricultural ventures, hands-on experience in coordination with Department of Agrarian Reform or Department of Agriculture
• For non-agricultural business, management, technical, and networking skills with TESDA and DTI

The catch: you have to be an OWWA member, so make sure to pay your dues to enjoy this benefit. To learn more about EEDT, you can contact OWWA at 8917601-24 local 5516/5517

Why should you take time going through these resources?

The answer is simple: it will help you and keep you informed. 

It is tempting to venture into a business or put your money in an investment that you believe could help you (only to realize that it won’t in the long run). Even if these are made accessible, you still need to educate yourself about certain concepts to help you make the best decision on how to grow your hard-earned money. The more informed you are, the better your decision-making and handling skills will be, so read up.