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6 Tips on How to Handle Your Credit Card Wisely

Are you thinking of applying for a loan, whether personal, car loan, or a home loan? Before the bank approves your application, they need to make sure that your credit standing-slash-capacity to pay is exceptional. One of the best ways to prove and boost your credit standing is by applying for a credit card – and making sure that you use it wisely.

Here are top tips and tricks to help you use your credit card the right way: Tip No. 1: Get a credit card that suits your needs. 

Despite the “Mastercard” or “Visa” on your credit card, banks these days offer various credit cards to cater to specific needs. Explore your options and choose a credit card that is best for your needs. In this case, consider BPI Family Credit Card or Security Bank’s Complete Cashback to help you stretch your cashflow.

Tip No. 2: Set a monthly limit – and make sure to stick to it. 

It is tempting to spend, now that you know you have a card to back up your purchases. Apparently, banks look into your spending and if they see that your purchases are greater than your payment, then you might be at risk of getting your loan declined.

Therefore, set a monthly limit and stick to it. This limit should depend on your capacity to pay in full. If you hit your limit, cut any form of spending until the next month.

Tip No. 3: Remember: Your credit card is not an extension of your wallet. 

Keep in mind that the amount swiped on your credit card is equal to the amount you have to pay come billing time. Don’t overspend.

Tip No. 4: Always pay on time and in full.

Have you seen the term “Finance Charges” on your billing statement? That means “interest” in addition to your purchases and you will constantly have it every month unless you pay the amount in full. The worst part is this finance charge keeps adding up, thereby making your total amount due bigger. To avoid that, pay in full and on time.

You might also consider setting an automatic payment for your credit card to avoid the hassle and getting charged for interest or late payment fee. This is why it is important to set a limit so you don’t have to worry about bills eating up your savings.

Tip No. 5: Review your credit card statement all the time. 

Is your credit card providing charging the right purchases? You’ll never know if they do unless you check your statement as soon as you get them.

Therefore, make it a habit to review your credit card statement and make the necessary adjustments when needed. Aside from ensuring the right charges, reviewing your statement allows you to see where your money goes and help you adjust your spending pattern.

Tip No. 6: Keep your credit card secured. 

From the time you get your card, make sure you sign at the back, list your credit card number, and save the hotline number of your credit card company. This will make it faster for you to notify the bank in case your card was lost or stolen.

Consequently, keep your credit card information to yourself. You don’t want people stealing your information and make you pay for their purchases, do you?

Owning a credit card entails responsibility. The challenge now is how responsible are you in using your credit card. The choice is yours.

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7 Things You Should Know About Agency-Hired OFW Compulsory Insurance

According to the Merriam-Webster dictionary, insurance is “a coverage by contract whereby one party undertakes to guarantee or indemnify another against loss by a specified peril or contingency.” In other words, insurance can be your form of guarantee if something happens to you.

Admit it. Insurance may be the last thing on your mind right now. With the expenses back home and the pressure to save for the rainy days, getting an insurance is not your priority. Believe it or not, there is a facility called Agency-Hired OFW Compulsory Insurance (OCI) and here’s what you need to know about it:

1. Also known as Compulsory Insurance Coverage for Agency-Hired Migrant Workers, this facility is made available by law in order to provide protection in the form of insurance to Overseas Filipino Workers.

2. This insurance coverage is mandatory for all agency-hired OFWs or OFWs who availed of the service of a recruitment agency authorized by the Department of Labor and Employment. An Overseas Employment Certificate (OEW) will not be issued without an insurance proof cover. Nonetheless, re-hired, direct-hired, and name-hired OFWs can avail of insurance coverage.

3. There is no need for you to apply for this type of insurance. Your recruitment agency applies this kind of insurance coverage on your behalf.

4. Below are the benefits you can avail of if you have Agency-Hired OCI: 5. Here’s how to file a claim for Agency-Hired OFW Compulsory Insurance:

  • OFW, the beneficiary, or OFW’s recruitment agency must notify the Agency-Hired OFW Compulsory Insurance provider. The telephone number of the insurance provider can be found in the OFW’s contact card or proof of cover.
  • The recruitment agency must assist the OFW in processing the claims.
  • Fill out the Claim Form provided by the insurance provider.
  • Submit the necessary documents to the insurance company. This could be Death Certificate, Medical Certificate, Medical Report, Police Report, and government-issued IDs necessary.
  • The insurance company will evaluate the claim and establish the amount due.
  • The insurance company must pay the OFW/beneficiary within 10 days from filing of complete documents.

6. The Insurance Code does not specify a minimum or maximum amount of insurance premium. This encourages competition among insurance companies for bigger savings and better insurance services.

7. The recruitment agency should pay for the insurance premiums and not the OFW. The OFW should not, in any way, pay for the insurance premium whether directly or as salary-deduction.

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Different Loan Facilities Available for Overseas Filipino Workers

Who doesn’t need money? Regardless of the currency of the money you are earning, everybody needs cash to pay for the rent, buy food for the table, and send the kids to school. Because of this need for cash, banks and other lending institutions came up with different facilities that will suit your specific needs.

This includes:

Personal Loan 

As the name suggests, this type of loan allows you to use the funds for whatever purpose. A personal loan allows you financial flexibility, which is why it is often turned to as a source of quick cash, especially during emergency situations.

Banks and other financial institutions offer different types of personal loans, depending on the borrower’s needs. You can use the funds to pay for medical bills, tuition fee, home improvement, for vacation or travel, to sponsor special events, or even to buy furniture or gadgets.

The good thing about personal loan is that you get to enjoy low interest rates, flexible monthly terms that ranges from three months to 36 months, and limited collateral (for instance, time deposit). On the other hand, the amount of loan is limited, with some banks allowing up to P1 million only. Nonetheless, you can borrow as little as P10,000.00

Car Loan 

If you are looking for a vehicle, whether brand new or previously-owned, then lending institutions can help you get one through Car or Auto Loan.

Compared to personal loan, auto loan lends you money for the purchase of your vehicle, which you need to pay within three to five years, depending on your arrangement with the bank. You get to enjoy low interest rates as well, although you might have to pay higher monthly amortization if you will buy a previously-owned vehicle.

Home Loan 

Do you want a place you can finally call your own? In that case, a housing loan facility is best for you.

A Housing Loan allows you to buy a newly-developed lot, a residential house and lot or condominium unit, or to pay for the construction or completion of a residential unit. You may also opt for a Housing Loan to refinance an existing home mortgage or to improve or renovate an existing property.

Unlike Personal and Auto Loans, a Housing Loan can be heavy on the budget. Housing Loans are long-term loans that you can pay within 15 years or less, depending on the terms agreed upon with the bank. This type of loan facility also require mortgage, which is usually the property you are planning to acquire or renovate.

When applying for a Home Loan, it is important to compare the rates and payment terms offered by various banks. You can also check SSS Direct Housing Facility Loan or Housing Loan from PAG-IBIG to get you started.

Business Loan 

Surely, you don’t want to work overseas forever. As much as possible, you want to settle in the Philippines with your family and open up a sustainable business, no matter how small it is.

In that case, you can consider getting a business loan. This will provide you enough capital to get you started and open up and grow your business. The loanable amount, which ranges from P100,000 to P2 million, may vary depending on your security.

Before you apply for a loan, identify your needs and establish the goals you want to achieve. This will make it easier for you to determine the kind of loan facility that will suit for your needs.

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6 Money Tips for Single and 20-Something OFWs

Being single and in your 20s may be the best time of your life. You can do anything you want and not worry about anything. Apparently, if you are one of the thousands of Filipinos working overseas to help provide a better life for your family, then being single and in your 20s calls for bigger responsibilities. In fact, you hold the title of being the “breadwinner,” who constantly have to send money for your siblings’ tuition fee or your father’s medication.

The question is this: do you really have to work abroad for the rest of your life to sustain your family?

Here are money-management tips you need to remember to help you thrive and succeed:

1) Set a deadline for your OFW life. 

There is nothing wrong with being an Overseas Filipino Worker. Still, this doesn’t mean you have to be one forever. Therefore, think long-term and set a deadline for yourself, regardless if you plan to settle down abroad. This will give you a sense of urgency to work harder, mind your expenses, and start investing to grow your money.

2) Always leave something for savings. 

This may seem like a broken record, but always have room for savings. Set aside a portion of your monthly earnings for savings, which you can use for emergency situations. You will never know what will happen in the future and having a savings account can help you get back up in case you got a call to go back home.

Consequently, save for yourself. Being a breadwinner in the family entails a lot of responsibilities, but this doesn’t mean you shouldn’t set aside something for yourself.

3) Spend wisely.  

These two words often go together – all the time. Earning in dollars can be a big deal and tempting at the same time, but this doesn’t mean you should splurge on the latest gadgets or send a big chunk of your salary to your family back home. Keep in mind that the future is uncertain and learning how to spend wisely can help you adjust in case these uncertainties decided to knock on your door.

In line with spending wisely, make sure you eat, breathe, and embrace budgeting. Be firm to your family when you say that you can only send this certain amount every month. You need to save up for the future and you and your family must agree on how much you can spend every month.

4) Explore your investment choices. 

There are tons of investment choices available (learn more about it here). Before you say yes to UITF or stock market, make sure you educate yourself first and know what options are available for you. Research and learn about the ups and downs of each investment choices you can try then decide the best option for you and your family.

5) Don’t be scared to say “No.” 

Admit it. Despite alloting certain amount for your savings, you often find yourself sending money to your family back home. Your tito felt short with his monthly amortization and your brother needs to pay for the graduation fee. They’re family, so how can you say no, even if it means working double shifts or taking another job just to make up for it.

The truth is you should learn to say no – and it’s okay. Earning in a different currency doesn’t mean you always have excess cash on hand. Every centavo equates to your hard work and sacrifice, which your family has to understand. Otherwise, you might be forced to look for other means just to keep them happy.

6) Remember yourself. 

At the end of the day, you are working not just for your family but also for yourself. There’s nothing wrong with helping family, but you should also teach them how to help themselves. Don’t forget that you have your needs and your future to worry about. After all, you can’t work abroad forever.

Working overseas is also a privilege. Make the most out of it by employing wise money decisions and being conscious with your spending. You do want to settle down in the Philippines, don’t you?

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How to Boost Your Credit Standing with These 6 Easy Tips

Surely, you don’t want to work abroad forever. Nonetheless, you work hard and save so you can start a small but sustainable business in the Philippines. You are even thinking of getting an OFW Loan to help you jumpstart your entrepreneur life.

Before your loan is granted, banks and other lending institutions need to dig deeper and check your credit standing. This is crucial because your credit standing is one of the deciding factors for the grant or denial of your loan. Poor credit standing equates to outright denial and harder time to get a bank approval, which you don’t want to happen.

Don’t worry. You can boost your credit score with the help of these tips: 1) Get a credit card and make sure to use it wisely.

This is the first and easiest step in boosting your credit standing. This is because it the simplest way to show banks that you are a financially good-paying and responsible borrower. You can show how disciplined you are in terms of making purchases and paying your dues on time, which leads you to the next tip.

2) Always pay in full and on time. 

Getting a credit card is just one part of boosting your credit standing. The challenge is when the bill comes and how much you can pay.

You can come up with tons of excuses – forgetting about the due date, lack of funds, emergency, long lines – and sadly, banks will only see that as late payment, which is not good. As much as possible, pay on time and in full in a consistent manner. Minimum payment is acceptable, but the remaining balance plus interest will be carried over to the next billing statement – and it’s not a good sign.

3) Avoid going beyond your credit limit. 

Here’s the danger of having a credit card: there is a tendency to use it to the last centavo – and more. After all, you can always pay for the minimum fee every month to avoid incurring penalty. Unfortunately, lending institutions frown upon this and consider it as a red flag. This could have a negative effect on your credit score.

If you can’t pay on time, consider paying in installments or better yet, avoid making purchases if you can’t pay in cash.

4) Limit to one or two credit cards. 

Banks these days can be a source of temptation, especially if they see how much savings you have in their bank. They tend to send your credit cards at your disposal. The problem with this is that there is a tendency to use them without paying all your purchases in full at the end of the month. Maintaining three or four is fine as long as you are able to pay in full and on time, which will have a positive effect in your credit score. Otherwise, stick to one or two. This will save you from drowning in debt too.

5) Keep your debts to a minimum. 

In checking your credit standing, banks will look into not just your average monthly deposits in the bank and credit cards but also other past and existing loan facilities with other financial institutions. If you have existing loans, make sure to pay them off or at least keep them to a minimum. You may also consider consolidating your debts or transfer credit card balances into a credit card with lower interest rate.

6) Ask for a raise in your credit limit, if possible. 

Don’t get too excited. Keep in mind that credit reports are based on percentages. This means high credit limit often result to lower credit utilization.

For instance, credit card A has an outstanding balance of P10,000 and your current credit limit is P15,000. You have a credit utilization rate of at least 65%, which is not good. You asked for an increase in credit limit, which the bank granted and gave you P25,000. At this point, you have a credit utilization rate of 40%, which is lower and more acceptable than the 65%.

The rule is simple: pay on time. Otherwise, minimize your debt and an increase in your credit score will follow.

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7 Tips on How to Get Your Personal Loan Approved

Personal loan is a type of loan that you can use to finance smaller purchases such as home renovation, payment of tuition fee for your child, or finance a family vacation among others. In other words, it is a multi-purpose loan that allows you to use the funds on things that matter to you.

Compared to home or car loan, personal loan has shorter term and more flexible monthly installment scheme. Nonetheless, you can only borrow as much as P1 million, depending on your bank of choice.

Here’s the thing: with the uncertainty that comes from working overseas, how can you get your personal loan approved?

Here’s how: 1. Open and maintain a savings account. 

Savings account serves dual purpose: for money-keeping and a credit booster. Aside from serving as your fund for the rainy days, a savings account shows your ability to manage money and eventually loan payments, especially if you regularly contribute in it.

2. Be honest and truthful with your loan application information. 

There is a reason why banks ask your address, home or mobile number, occupation, and estimate of monthly salary among others. They need to verify if you are a real person and capable of paying the loan. Therefore, supply only factual and truthful information in your loan application. If they cannot contact you, then no loan processing will take place.

3. Maintain a good credit standing. 

Credit standing is your reputation that reflects your ability to meet various financial obligations. The better your credit standing, the higher the possibility of getting your personal loan approved. On the other hand, unpaid credit card debts or bounced checks are considered red flags and banks don’t like them.

Even if you don’t intend to get any type of loan, it is still important to maintain a good credit standing. This will facilitate and speed up loan processing in the future in case the need for additional funds arises.

4. Know your options. 

There are tons of banks and lending institutions that offer personal loan at competitive rates and packages. Before you apply for one, make sure to check the facilities that offer your needs, easy and flexible payment terms, and other features that allows you to get more than what you apply for. This may take time, but familiarizing yourself with the procedure will be helpful when you apply for a personal loan.

5. Prepare the needed requirements. 

Apart from incomplete or insufficient information, one of the reasons why loan processing takes time is because of incomplete requirements. Once you made up your mind on where to avail of a personal loan, make sure you prepared all the documents needed to process the loan. After all, banks won’t process your application and release the funds if you can’t surrender all the documentary requirements required from you.

6. Be realistic in terms of loan amount. 

You want P1 million, but do you really need that amount when all that you want is to finance your child’s tuition fee? This is where the importance of providing accurate information comes in. Banks assess your ability to repay the loan according to your employment and savings account. If you are unable to show any documents to prove such ability, then don’t expect the bank to grant you the maximum loan amount. After all, an outright decline is possible.

7. One bank at a time. 

Here’s another tip: don’t apply for a personal loan in several banks all at the same time. You might want to take chances and believe that at least one (or two) will grant your loan. Believe it or not, this will reflect during your credit investigation and banks may think that you are financially trapped – and it’s not good. There is a higher chance of getting your application declined as well.

The next time you apply for a personal loan, take these seven tips in mind. There is no guarantee of approval, but these tips will help you boost your chances of getting your loan approved.

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Money Matters: 7 Money Tips for OFWs When Going Home

One of the most awaited events for every OFW family is when you go home, especially if its been years since you last set foot in the country. Whether it’s a one-week or one-month vacation, going back home means nonstop eating, shopping, and catching up with friends and family. This also means the possibility of depleting your hard-earned money slash savings and going back to where you are working with almost nothing left in your pocket.

In case you are heading home, make sure you read these tips – and keep your finances in check: 1. Set a budget. 

This is the first rule every OFW must remember when vacationing.

Admit it. There is a tendency to splurge on your family member and give in to friends when you’re back home, especially if it has been years since they last saw you. Nevertheless, never leave without setting your budget. Set aside money and categorize them accordingly – shopping, dining out, quick vacation, and even last-minute or emergency expenses. More importantly, make sure to stick to it. This will help you limit your expenses and at the same time, prevent careless spending.

2. Know needs from wants. 

Now that you are in the process of setting a budget, make sure you differentiate needs from wants.

You might be tempted to buy everything that you can before heading back to the Philippines. Before you make those purchases, stop, think, and decide whether your son really needs that new rubber shoes when you just sent him a new one a month ago. By differentiating needs from wants, you will be able to limit your spending and focus more on the non-material things. You’ll save your wallet, too.

3. Take it easy on pasalubong. 

Every OFW is guilty on this. After all, giving pasalubong is part of the Filipino culture and at the same time, a love language.

Wait, do you really need to buy one for your friend’s niece or give something to your neighbor? As much as possible, limit pasalubong to immediate family members. You would be able to save a lot if you don’t let the pressure of giving something to everyone get in your head.

This leads you to the next tip.

4. Learn how to say NO. 

Asking for pasalubong or making a list of bilin is common in Filipino society. Most of the time, pressure sets in and it’s hard for you to say “No” when someone asks for this and that.

At this point, learn how to say no. You don’t have to give in to everyone’s demands just because they helped you get a job overseas or your kumpare wants nightly drinking sessions in your honor. You can’t please everybody. If they can’t understand that you are in a tight budget, then it’s not your problem anymore.

5. Remember that you are not a millionaire. 

Working overseas comes with many uncertainties. In an instant, political conflicts, natural calamities, or changes made by your employer could ship you back to the Philippines.

Therefore, don’t live like a one-day millionaire. Never splurge on something that you might regret later on. What you have is a product of your hard work and sacrifices abroad. Spend your money wisely.

6. Set your long-term mindset. 

As harsh as it may sound, you are only as good as your employment contract. Once it’s done and your employer no longer extends your services, you have to face the consequences of going back to the Philippines and look for a new job to sustain the family.

This is why it is important to set your long-term mindset and goals. Instead of focusing on the present and sending money and material things to your family, make sure you are able to prepare for the future. You can’t work abroad forever, so as much as possible, save and invest.

7. Don’t forget your local accounts and investments. 

Do you have local bank accounts? Before heading back to your work overseas, make sure you check your local accounts to see how money is being spent. This is a good opportunity to check any dormant accounts where you get charged with P200 or P300 dormancy fee every month. Checking on your investments, if any, is also a must to keep you updated of how much money you are able to grow.

If you don’t have a local account, then it is best to set up one (or two). Take your time home as an opportunity to study investment options to help you grow your money. This way, you are sure that you have something to lean on in case of emergency.

The time you spend with your family is worth more than the material things you give them. Focus more on things that matter without emptying your wallet. Working overseas is both a blessing and a privilege. Make use of it in the best way that you can without going bankrupt.

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Top 5 Reasons Why Your OFW Loan Gets Declined

Overseas Filipino Workers are hailed as “heroes” or in Filipino, “bagong bayani.” Because of this, various options and loan facilities are offered specifically for you. Oftentimes, you get special treatment and special rates as well.

How come your OFW Loan still gets rejected no matter how many times you apply?

Here’s why: 1) Incorrect / Incomplete / Unclear Information 

The information you will provide is very important. Banks and other lending facilities use this information to check your background and at the same time, determine your capacity to pay the loan. Any inconsistencies such as address or mobile number could delay your OFW loan or even gets declined.

Therefore, make sure that all the information you will provide in the loan application is true and complete. Submit all the required paperwork to prove your credit worthiness. Don’t worry. Your information will remain confidential.

2) Lack of Stable Income 

Despite what was written in the employment contract, you have little control over it. Depending on the situation and your employer, the term or nature of your employment might change or prematurely terminated. This is the reason why lending institutions reject your OFW Loan. They need to see your capacity and ability to pay the loan in a timely manner – and six months working overseas is not enough to prove that. Jumping from one job to another is also not a good sign for the banks.

Therefore, stabilize your job and prove that you are worthy of credit. If you really need that loan, apply with a co-borrower, preferably a close relative with stable source of income and good credit standing. This could boost your chances of getting your OFW Loan approved.

3) Negative / Poor Financial Record 

Do you have unpaid credit cards or loan facilities you haven’t paid for the longest time? That could affect your credit standing and result to OFW loan rejection.

Lending institutions are sensitive when it comes to potential borrower’s credit standing because they need to make sure that they will be paid upon maturity of the loan.

Therefore, pay all your past due accounts before applying for a loan. Constant payment is a big plus and once the bank sees you are diligent in paying off your debt, it could approve your loan application.

4) Job and Destination Country

Working overseas and showing your capacity to pay are not sure ways to get your loan approved. Even if you have sufficient savings, lending institutions also look at the nature of your job and the country where you will be assigned. These two factors are crucial because any changes in the foreign policy or the country’s current situation could affect your employment, including salary rate.

Therefore, choose a job and destination country wisely. Do not put yourself at risk just because a country with evident political tension is offering higher pay. Consider your safety first before anything else.

5) Large Amount for Loan Request

There are two types of loan: secured, which means it has to be backed up by a collateral (car, real property, or equipment); and unsecured, which doesn’t require any security but comes with high interest rate.

Most of the time, banks and other lending institutions go for secured type of credit for protection purposes. The security you will offer will help as to how much you can loan, depending on the appraised value of your offered collateral. If the property you offer for a collateral is pegged at P500,000, don’t expect the bank to lend you P1 million.

Therefore, don’t apply for OFW loan using collateral that is appraised at lesser value than how much you want to borrow. Check your properties that you can offer as a collateral and make sure that they value more than the amount you plan to borrow. More importantly, be realistic with the loanable amount. Keep in mind that banks prefer someone who can pay them in time and would not want to go through the time and hassle of re-possessing your property.

At the end of the day, applying for OFW Loan requires strategy. Determine your need for loan, check your finances, and see if you are capable of paying. You can also check Balikbayad to see how they can assist you with your funding needs.

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Money Matters: 6 Best Investment Options for OFWs

How many times will you hear OFWs say that the reason why they work overseas is to provide a better life or future for their families? The reasons may vary, but one thing is for sure: you are really after the good and secured life.

Working overseas allows you to earn more than what you can earn in the Philippines. Unfortunately, this “capacity to earn in dollars” will only be as good as your contract. Before your employment contract expires, you should be able to find additional means to grow your money and make sure you can use something for the rainy days.

Check out these best investment options you can try: Mutual Fund

This is the simplest form of investment you can try. For starters, you can invest P5,000 and a professional fund manager will handle your account. He will place your money in  pooled investments, which will then be invested in various securities like shares of stocks, government bonds, and other investment options,

This is a good investment because it requires little time and effort, thereby taking the work out of your hands. BPI, Security Bank, PNB, and Sunlife are some of the financial institutions that offer mutual funds.

Unit Investment Trust Fund (UITF) 

This type of investment is similar to mutual funds where professional fund managers handle your money. The difference is that UITFs involve per unit investment as opposed to mutual fund’s shares.

This is a good investment because you don’t need to exert time and effort to grow your money. It is readily available, poses lesser risk, and yields higher rates compared to time deposits. UITFs are also offered in major banks like BPI, BDO, Metrobank, PNB, and EastWest Bank .

Bonds 

Bonds are debt instruments where you can lend money to either the government (treasury bonds) or corporation (corporate bonds). Bonds also have fixed maturity dates and allow you to earn bigger profits. This also allows you to diversify your investment portfolio.

This is a good investment because of the minimal risk. Whatever happens, the issuers of bonds are obligated to pay you in both principal plus interests. Payments are also made on a semi-annual basis – and you are sure you can get that. Metrobank, PNB, and BPI are some of the banks that sell bonds.

Stocks 

If you are willing to take a risk, investing in stocks can be a good option. Investing in the right companies also allows you to grow your money by at least 50 percent, especially when you do it right.

This is a good investment because you are able to keep track of your investment online even if you are working overseas. You can also expect higher annual returns and issuance of dividends at least once a year. Investing in stock market can be intimidating, but the good news is there are various workshops, books, and articles online that will help you better understand how it works. COL Financial Group, BPI Securities, and First Metro Securities are among the accredited brokers of the Philippine Stock Exchange.

Owning a Franchise 

This is another risky investment, but if you are willing to try it, the results could pay off. This is because franchising allows you to learn and understand how a business works using a tried-and-tested system. Franchise fee could range from P35,000 to as much as a million, depending on your franchise.

This is a good investment because it allows you to earn additional income and at the same time, provides livelihood for your family. This will teach the family members the importance of money and earning as you work overseas.

Real Estate

It may require a higher amount, but many OFWs prefer investing in real estate for future family home or for the sake of having a property. There is higher risk as well because you need to make sure that you will be able to pay the amortization. Nonetheless, nothing beats the joy of having a property you can call your own.

This is a good investment because the property has a potential of providing you bigger returns. Generally, the value of a property appreciates too. Just make sure that in buying a property, you think long term, consider the location, and the possibilities you can do should you decide to come back to the Philippines for good.

OFWs have many options when it comes to investing hard-earned money. Don’t just settle with your monthly salary since you will never know what will happen. Choose the best investment option for you and you will start saying hello to earnings in no time.

 

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Money Matters: 6 Financial Tips for Every OFW

Every Overseas Filipino Worker has their reason for leaving the country. At the end of the day, it all boils down to providing a better and more secure future for the family. That is because sadly, working abroad, could help you provide a better life.

Here’s the thing: earning in dollars does not guarantee a good life. In fact, there are (many) cases when OFWs have little to no money left once the contract has expired.

Don’t let this happen to you and your family by remembering these money-savvy tips: 

1. Set a goal. What is your reason for working abroad? Whatever the reason is, it is important to set a goal to help you keep your eyes on the prize. You can start with “I want to save P100,000 by the end of the year so your family can start a sari-sari store” to get you motivated. This leads you to the next tip.

2. Always set a budget. This is the problem with many OFWs. Since you are earning more than what you can earn in the Philippines, you tend to be complacent and send a big chunk of your salary to your family. That shouldn’t be the case. Instead, set aside portions of your salary for savings, remittance, and daily expenditures – and make sure to stick to it. Allocating your money will help you keep track of your earnings and at the same time, put your money into good use. If it’s possible, set up different bank accounts for specific purposes.

3. Needs over wants. It’s easy to give in to the request of your family. Being away from them makes you feel guilty; hence you shower them with material things to make up for the time lost. The problem with this is that material things don’t last and you might end up spending more than saving. Prioritize needs over wants and don’t feel bad if you are unable to buy the latest phone or tablet for your kids.

4. Don’t be afraid to invest. Does the term “stock market” or “investment” scare you? Financial literacy is not common among Filipinos, but this doesn’t mean you should join the bandwagon. Read about various investment options available and find out which one you are more comfortable with. All it takes is an initiative to invest, no matter how small, and you will be growing your money in no time.

5. Know who really needs your hard-earned money. As the person working overseas, you are often tasked to help people other than your immediate family in times of emergency. After all, you are earning in dollars and it won’t hurt if you pay for your nephew’s tuition, which they promised to pay you back when able. Go back to your goals and remind yourself why you are working abroad. Money may come easily, but this doesn’t mean you should carry the burden of providing for everyone. You don’t want the culture of laziness and apathy grow in the family, and prioritizing your expenses could stop that.

6. Stop the culture “over-giving.” Your hard-earned money is precious. While giving pasalubong to your immediate family is fine, you are not obliged to give something to the whole clan. This could be a buzzkill, but set aside a budget for gifts when you get home and don’t feel bad if you are unable to give something to your barangay captain.

At the end of the day, remember your goal on why you are working overseas. This will help you get back on track and remind you of the needs of your family.