Category: Money Matters

Each one of us has a set of traits that are unique from others. Oftentimes, these traits are passed on from generation to generation while others may be acquired due to experience or changes in lifestyle. Still, there are traits that are common to many – even if you are not related to one another.

While Filipinos are known to be resilient and always looking at the brighter side of things, there are traits that might explain why many are still unaware of what investment is or the concept of savings.

What are these traits that could hamper our success as a nation? These are:

Way Too Many Celebrations

Almost everything is celebrated in the Philippines – birthday, anniversary, graduation, baptism, wedding, grandparents day, national siblings day, and the list goes on. While these occasions warrant a celebration, the problem with Filipinos is that we celebrate too much. Many are willing to throw money just to have that party that will make everyone wish that it is theirs.

Mind you, there’s nothing wrong with celebrating important milestones. But do you really need those fireworks or feed 300 people? We think not.

Manana Habit

Admit it. You have the habit of procrastinating or doing things later instead of working on it now. You often say, “Mamaya na” because who doesn’t want to catch some sleep or check what’s happening to your family on Facebook?

You may not notice it, but this habit extends to how you deal with your finances. You might say “mamaya na” when you need to pay the bills, open a savings account, or even start an investment. This could compromise your financial future and by the time you decide to say yes to any one of your financial goals, it’s already late.

“Nahihiya Ako” Habit

Philippines is a conservative country, which explains why despite the modern age, many still look down on those who wear skimpy outfit or had several partners prior to marriage. Instead of being open, many people prefer to keep things to themselves.

Sadly, this extends to anything financial. Instead of asking questions about things you don’t understand such as how the stock market works or what is the difference between UITF and mutual fund, you decided to be quiet. Even if you want to know about time deposit or treasury bonds, you don’t want to ask out of fear of being labeled.

This is not a proper mindset. There’s nothing wrong with asking questions, especially on those you are not familiar with. Despite tons of information available online, there’s nothing wrong with asking an expert.

Extended Family Mentality

Unlike foreigners, Filipinos are very close to family. This is a good habit but sometimes, this closeness extends to extended relatives.

What’s wrong with that? Nothing – until all of your savings or hard-earned money is shared to your extended family. Since you are working overseas, you feel obligated to let them borrow money or even put something for them on the balikbayan box.

It’s okay to share, but you need to set boundaries. You’re not a walking ATM and every money sent is a product of hard work. Leave something for yourself and your family since this is your priority.

“Pahiram Naman Dyan”

When you want something, how do you pay for it? Ideally, you save up for it until you have sufficient amount to pay for the item. Unfortunately, many would love to borrow money just to buy what they want.

Stop this habit. It’s okay to borrow especially for necessary purchases that will cost you hundreds of thousands. If you don’t really need it yet, then make it a habit to save up for it. At least you don’t know anything to anyone.

Do you possess any of these habits? Don’t worry. It’s not too late to kick them off.

There are many reasons why couples fight. Despite the petty quarrels over who forgot to flush the toilet or who’s turn is it to do the dishes, one of the biggest issues facing couples is the issue on money. This could get worse if you are thousands of miles away from each other. Even if you don’t want it, sooner or later, you and your spouse will be fighting about money.

Do you really have to wait for that time to come? Definitely not.

Before things get worse, here are some money management tips you and your spouse need to remember, which could eventually lead to better financial future:

Tip No. 1: Know and Understand One’s Money Personality

Before you establish ground rules, you and your spouse need to understand how you both handle money. You need to know who’s likely to be a spender or who prefers to save money so you can come up with a solid plan on how to handle everything.

Being an OFW could be overwhelming for many families since the income is higher compared to how much you are earning in the Philippines. As a result, many families are unable to save for things that truly matter because spending came first. You can avoid that early on by knowing and understanding each other’s attitude towards money.

Tip No. 2: Decide On How To Handle Money

You will more likely earn more while your spouse could be staying at home or working online while taking care of your family. Given your situation, how will you handle money?

Have a sit-down with your spouse and decide. Decide on:

• What to do with your earnings
• What to do with your spouse’s earnings
• How you will split the expenses at home
• How money will be handled, either jointly or separately
• Whether or not you will both have personal accounts

These are some of the things you need to discuss before you leave the country. Consequently, it is something you should discuss from time to time for checks and balance. This way, you and your spouse are both on the same track when it comes to your family’s financial future.

Tip No. 3: Be Honest With Your Finances

Money is among the many issues haunting couples these days. It’s not just about who spends more or why one earns higher than others. Sometimes, it’s because couples are not honest with their finances.

Be truthful and honest. Have some sense of transparency where one knows what the other is up to and vice versa. If you have an existing loan or you feel you have spending issues, then talk about it. Let your partner know that you owe someone this big or you don’t have enough savings.

The same goes with your spouse. Make sure you are both honest with your financial situation. It may be embarrassing to talk about it but you can’t commit to a more rewarding financial path if you’re both hiding something.

Tip No. 4: Agree On Your Spending

There are many things you need to spend on – house, car, your kid’s education, daily expenses back home and where you’re working, and the list goes on. Then you have to worry about savings, retirement fund, and investment because hey, OFW life is not forever, right? Your kids might be requesting for new shoes or iPad and saying no to them is your weakness.

Whatever it is, you and your spouse must agree on where your hard-earned money will go, regardless of how big or small the amount is.

Tip No. 5: Work Together

This is a must. You will never be able to achieve your financial goals – or any other goals – if you two are not working together. Handling money for your family is a collective effort. If you don’t work as a team, then everything that you want for the family might not happen.

Let’s say you have extra P10,000. Where do you plan to use that money?

Shopping for your family back home is a good idea, but if you have to be wiser about your money, you will invest it to make it grow. The question now is where to invest it.

Stock market is a good option because of higher return. On the other hand, the risk of losing your money is higher as well. If you’re more of a conservative investor, then you might consider time deposit.

Time deposit is a type of bank account that allows you to earn fixed interest rate over a specific period of time. Typically, the higher the amount, the higher the interest rate, which also means higher earnings. Unlike your usual savings account, you cannot withdraw the amount anytime, unless you are willing to pay for pre-termination fees.

Is it worth it? How much can you earn in this type of investment? What is the preferred term for time deposit?

Don’t worry. Here are things you need to know before you place your money in time deposit:

It Is Easy To Understand

Time deposit doesn’t require you to read books to know more about how this investment option works. Once you opened an account with your bank of choice, just leave the money there and it will earn interest, which you can enjoy upon maturity date.

You Can Open A Time Deposit Account Easily

Did you know that P1,000 is enough to open a time deposit account? Some may start at P5,000 but the point is you can start with low amount.

However, if you want to earn higher amount, then higher deposit and longer term are required. This could be a good option IF you won’t use your funds yet. Otherwise, shorter term is recommended.

Aside from the amount, you can easily open a time deposit account since the process is similar to savings account. Instead of ATM or passbook, the bank will issue a Time Deposit Certificate under your name. It also specifies the amount, term, interest rate, and maturity date.

Choose Your Lock-In Period

Time deposit account is flexible, thereby addressing your short and medium-term financial goals. In fact, you can choose your account’s maturity period, which is between 30 days and seven years, depending on the bank. Make sure you ask your bank about the loan term to help you decide the right duration according to your needs.

Take note that by lock-in, this means you cannot withdraw the amount at anytime. You have the option to withdraw the amount upon maturity date OR the proceeds of the interest and then opt for roll-over so it will earn more interest.

Additional Deposits Are Not Allowed

This is the thing about time deposit. Once you opened an account, that’s it. You cannot make additional deposits. The only time you can do this is upon maturity.

Higher Interest Rate Than Savings Account

Despite the lock-in, you can earn more in time deposit compared to savings account. Unlike the latter with less than one percent interest rate, time deposit accounts allow you to earn up to five percent. It is also fixed, which means it will remain the same all throughout the term.

Of course, your earnings will depend on the amount of deposit on your account, term, and rate offered by your chosen bank. Ask about this so you will know how much you can earn given a particular amount.

It Is A Safe And Stable Investment Option

Time deposit is ideal for conservative investors who are still unsure where to place their money. There are many investment options available, so if you don’t know yet where to put your hard-earned money sans the risk of losing it, then time deposit is advisable.

Higher Deposit + Longer Term = Higher Earnings

This is the formula if you want to earn more in time deposit. Believe it or not, investing P50K for five years lets you earn more than your P5,000 investment for one month.

If you have extra money to spare and you’re unsure where to use it, then place it in a time deposit. This way, you won’t be able to spend it and reduce the risk of losing your money.

You Can Get Your Interest Earnings

You have three options upon maturity of your time deposit account. You can:

• Withdraw the interest amount earned and then renew the time deposit account.
• Withdraw the entire amount including interest earned.
• Roll-over or renew the time deposit wherein the interest is compounded. This means the new amount reflects the added interest earned, which will now be multiplied to the interest rate.

If you still don’t have plans on where to use the money but want to enjoy the benefits of your investment, then you may opt for the first option.

You Can Use Your TD Account As A Security For Loans

Yes, you read that right. Banks allow you to borrow money and use your TD account as a security of the loan. Loanable value could be 80 to 90 percent of the total placement value of your time deposit, depending on the bank.

If you plan to apply for a loan and you want to use you time deposit as a collateral, then it is advisable that you apply on the bank where you have your TD. This way, processing your loan application will be easier.

Foreign Currency Is Accepted

Just like savings account, you may open a time deposit in foreign currency, which is usually in US Dollars. However, there are few banks like BPI and Metrobank who accept other currencies like British Pound, Japanese Yen, and Chinese Yuan.

The good thing about this is that since you are – most likely – earning in dollars, you can open a time deposit account in foreign currency without worrying about foreign exchange fees and differences in peso-dollar rates.

You Cannot Escape Taxes

Banks won’t require you to pay processing fee when you open a time deposit account. Unfortunately, it cannot escape government-imposed taxes. There will be 20 percent final withholding tax as well as documentary stamp tax of P1.50 for every P200.

If the term is more than five years, then you will be exempt from tax.

Withdrawal Is Not Allowed

This is the limitation of time deposit accounts. If you need quick cash, then terminating your TD is not a good option. Otherwise, you have to pay for penalty or pre-termination fee, which is usually 10 to 50 percent of the interest earned.

Ask your bank about this since some banks convert the time deposit account into regular savings account IF withdrawing money is truly necessary.

It Is Insured By The PDIC

Known as the Philippine Deposit Insurance Company, PDIC insures time deposit accounts up to P500,000. Of course, you wouldn’t want your bank to go bankrupt, but it’s good to know that you are protected.

How many bank accounts do you have? If you only have one, then that’s good. That means you only have to manage one bank account; hence makes your life easier.

For many others, they prefer having multiple accounts so they won’t co-mingle their funds. This way, it is easier to track how much money they have for each particular fund, say Educational Fund or Emergency Fund.

Here’s the thing: having multiple bank accounts could be gruesome and time-consuming to manage. In case you prefer it this way, here are things you need to remember to make managing easier and more convenient for you:

Tip No. 1: Identify The Funds You Only Need

We understand that you need several funds for several goals; hence several bank accounts. But the question is do you really need to set aside a separate fund for EACH?

When it comes to managing multiple bank accounts, it is advisable that you have accounts for funds you only need. Ideally, you need to have a savings account that will cover home and family needs and an Emergency Fund since these two are enough. Having a checking account could be useful as well, especially if you have lenders who prefer checks as mode of payment. Otherwise, this is no longer necessary.

If you have an existing home loan with a bank and you opted for Automatic Debit Arrangement, then you might be required to have a separate bank account where they will debit the monthly amortization. Ask your payment options if you don’t like to open an account.

The bottom line is have accounts for funds you only need.

Tip No. 2: Online Banking Is Key

Technology has its ups and downs. When it comes to managing multiple accounts, make sure you take advantage of it.

One of the things you should take advantage of is the online banking facility. It allows you to check your balance, transfer cash from one account to another, and make payments. You will be able to see every transaction made when you do online banking.

Since you are working overseas, having this facility will make it easier and more convenient for you to see what account needs to be replenished.

Tip No. 3: Choose The Right Bank

Ideally, you’ll go for one bank for convenience. This will make fund transfer easier for you since you can just enrol both accounts.

The question is this: is your bank meeting your needs without charging you with hefty fees?

As a rule, you need to check various banks and evaluate their accounts facility. Since you work overseas, it is advisable to choose banks with overseas branches as well.

Ask about the interest rate earned, minimum maintaining balance, penalty charges, and perks for being an OFW. The government impose taxes, so make sure you look into that as well.

Spreading your accounts in multiple banks allow each account to enjoy different perks. Plus, PDIC imposed a P500,000 maximum coverage per depositor in case the bank goes bankrupt, which may or may not happen. But if the features are so similar that you can’t tell the difference, then stick to one or two banks.

Tip No. 4: Always Deposit Accordingly

Now that you identified which bank/s to go to, make it a habit to deposit money accordingly. Even if you could transfer money online, the idea of multiple accounts is to allow you to budget and prioritize your expenses.

Stick to your goal, deposit money consistently and accordingly, and be committed in making your money grow.

There are many reasons why you decided to leave the country and work overseas. Since you will earn more and in dollars, it will make it easier for you to save money, buy your dream home, and of course, set aside sufficient amount for your child’s education. If you want your child to study in a good school until college, then you need to start preparing for it NOW.

We understand how tough life can be, especially for parents. This is why we are here to help you by outlining various tips on how you can start preparing for your child’s education.

Tip No. 1: Know How Much You Need

Before you make a plan on how to prepare for your child’s schooling, you need to know how much you need, or at least an estimate of tuition fees and other expenses.

Ask how much the tuition fee of your target school is and include inflation rate of 10 percent every year. Consider other expenses such as allowance, school service fees, and tutorial fees among others.

The amount you will arrive it may not be the exact amount, but at least you have an idea on how much you need to save. Use this as your guide when setting up an educational fund for your kid/s.

Tip No. 2: Start Saving Now

When will you start saving for your child’s tuition? Apparently, you don’t do this when s/he starts going to school. You need to do it now and as early as possible. In fact, the earlier you start saving, the bigger the savings will be.

Even when your kids start schooling, you still need to save for it. This way and whatever happens, your child’s education will continue even if you’re no longer working overseas.

Tip No. 3: Request For Money As A Gift

For your child’s binyag, first birthday, Christmas gift, or any other birthday, don’t be shy to tell guests to give money instead of gifts. Material things may not last long, but money could be useful when the right time comes. Whatever amount you collected must be placed in his Educational Fund.

It may not be a lot, but this could be a big help in augmenting your kid’s educational fees. Just make sure you don’t use this for unnecessary expenses.

Tip No. 4: Look For Other Ways To Earn

Don’t just stop with how much you’re earning overseas. You have mouths to feel and bills to pay – and that doesn’t stop there. In fact, the money you are earning may not be enough to cover all the expenses back home.

If you really want to prepare for your kid’s education, then you need to look for other ways on how to earn money. Getting a part-time job is a good idea, but make sure your family back home is doing their part in helping you with expenses. There are tons of home business ideas they could do for extra income. This way, you don’t carry all the burden.

Tip No. 5: Consider An Educational Plan

Educational plans are not popular these days because of what happened to few companies back then. Still, don’t use this as an excuse not to consider this option.

Thankfully, there are many legitimate insurance companies that offer educational plan with reasonable monthly premium. The good thing about getting this option is that you are “forced” to save for your child’s future.

Some plans have investment arm as well, so make sure you ask about it. This is a good way to not only prepare for your child’s education but also help you grow your money.

Investment Options You Can Start for as Low as P10,000

Where do you put your hard-earned money?

For many OFWs, money is saved in the bank through your savings accounts, which also serves as a remittance account. Some will decide to open a time deposit, which allows them to earn a little bit higher than savings account.

If you want to be wiser about your money, then you need to start considering investment options.

According to Investopedia, investment is economically defined as “purchase of goods that are not consumed today but are used in the future to create wealth.”

In simple terms, it helps you grow your money.

Decades ago, investment are for the rich. Some options even require you a huge amount of cash to be able to have one. Today, the story is different. Investment options are not accessible to everyone, regardless of socio-economic status, to help ordinary Filipinos build their wealth. In fact, all you need is P10,000 and you can start your investment journey.

Below are your options:

Mutual Fund

Mutual fund is a type of investment wherein money from various investors is pooled into a common fund. This common fund is managed by professional fund managers, who in return, will invest the fund into different securities.

The best part is you can start with as low as P10,000. 

Read: How to Invest in Mutual Funds

Unit Investment Trust Fund or UITF

UITF is similar to mutual funds, except that the former is offered by commercial banks.

The good news is investing in UITF is safe because banks are supervised by the Bangko Sentral ng Pilipinas. The better news is that you can start investing in this with only P1,000 on your wallet. Not bad, right?

Government Securities

These are investment options offered by the government such as Retail Treasury Bonds and Treasury Bills.

The good thing about this type of investment is that aside from low minimum amount of P5,000, it is guaranteed by the government. After all, do you really think the government will run out of money?

However, don’t expect too much on interest since the return may be slightly higher than time deposits.

Stocks

If you are looking for high-return type of investment, then investing in stocks is a good idea. This is because when the company is earning, the value of the shares increases. The best part is the value of shares typically increases over the years. You can also start investing with P5,000 on your account although this may prevent you from buying high-valued stocks.

The issue with investing in stock market is that the risk involved is higher. When the company is not performing well, their value decreases, which means the price of their stocks decreases too. You could potentially lose a big amount especially if you’re not too careful on where to invest.

Government Savings

Another good option to invest your money at is through government savings.

PAG-IBIG has MP2 savings program that allows you to deposit at least P500 every month. On the other hand, SSS has a PESO Fund wherein the minimum monthly deposit is P1,000.

Since these savings program are guaranteed by the government, then you don’t have to worry about losing your hard-earned money.

Just make sure you are a member of SSS and PAG-IBIG to be able to avail of these savings programs.

READ: PAG-IBIG MP2 Savings vs. SSS P.E.S.O. Fund

So, which among these investment options are you ready to say yes to? Remember, if you start early now, you’ll be able to reap more benefits later.

They say parents are the child’s first teacher. That’s true. In fact, what you show to your children now could have a huge impact on them as they get older. This includes how you handle money and finances at home.

The truth is teaching money lessons to kids can be tricky, especially when you are miles away from home. Don’t worry. This doesn’t mean it can’t be done.

Read this post and let this help you teach money concepts to your kids – and hopefully, you’ll adapt these too:

Money Lesson No. 1: Get to know the Philippine money a little bit better.

You can’t teach addition and subtraction immediately. Before you teach them about how to handle money, you need to educate them about what Philippine money is.

Introduce the peso denomination, including the people and places in front and at the back of the money. If you could tell stories and a bit of history about the Philippine money, then indulge your little ones with that. They could easily appreciate money because they know and understand the stories behind it.

You could use real money or play money when introducing this concept.

Money Lesson No. 2: Play money games.

It’s not enough that you teach your kids about denomination and who are the heroes imprinted on the money. Kids are kids and after a few minutes, they might forget about what you told them.

Therefore, make learning more exciting. You could try guessing game or sorting games. During your vacation back home, try pretend play by transforming your room into a grocery store or restaurant and money will be used to pay for the items bought.

The bottom line is the more you make learning fun and exciting, the more they will remember it.

Money Lesson No. 3: Explain how money is earned.

Being OFW is tough. Aside from the sacrifices you have to make by leaving your family to work abroad, you will also be partly responsible for the needs – and wants – of your extended family. Because of this, your children might think that earning money is easy.

Change that mentality by explaining to your kids how money is earned, which is by doing valuable work. Tell them that no one will hand you millions of pesos simply by sitting and waiting. In fact, make your kids understand that the reason why they are experiencing what they have is because of the hard work you need to do overseas.

Don’t sugarcoat and explain to your kids what the reality is. Let them know the reasons why at times, you can’t give what they are requesting. They will appreciate and value money more because they know the hard work that comes with every centavo.

Tip: Give your child age-appropriate jobs and pay them. For instance, let your child look after the sari-sari store and give him a salary at the end of his shift. This not only teaches the value of hard work but also instill work ethic and discipline at a young age.

Money Lesson No. 4: Teach about the importance of saving.

This is a must. Saving should not just be your sole responsibility, rather a family effort. Now that your kids know what money is and how it is earned, the next thing you need to teach is how to save the money earned.

A piggy bank or saving jar is a good idea but if you want to keep track of how much money is saved, then consider opening a bank account under their names. Give them access to that account but be firm that this is for future use and not for the things they want that won’t last.

Check out this post for a list of savings account you could open for your kids.

Teaching money to your children and instilling good money values will take time. Start now and you will reap the rewards later.

Last 2018, the government imposed a higher tax on automobiles upon the passage of TRAIN Law. This means if you plan to buy a brand-new 1.3 Toyota Vios, there is an increase for another two percent excise tax; thus making your purchase more expensive.

Luxury and hybrid cars are generally cheaper, but for ordinary citizens, will you drive a Toyota Land Cruiser that is worth at least P4 million?

In other words, buying a car today is more expensive than purchasing it two years ago.

Apparently, having your own car is one of the things you want to buy as product of your hard work overseas. With the increase in car prices, is it better to go for previously-owned or stick to brand-new – and worry about payment later?

Yes to Brand-New Car

Generally, it is more expensive.

Are you willing to shell out at least P700,000 for a brand-new car? It may not seem a lot for some but for many Filipinos, this is a big amount.

Brand-new cars are generally more expensive compared to going for previously-owned vehicles. Good thing lenders relaxed their requirements and make it easier for potential car owners like you to have their own car.

You need a car – fast.

Brand-new cars have readily available units. All you need to do is to visit the showroom, talk to a sales representative, complete the documents and cash. and you can get your car right away.

If you plan on getting a car loan, then don’t worry as well. Car loans or in-house financing are now faster in approving – or rejecting – auto loans. In fact, some could give you an answer within the day and update you about the status of your application.

Take note that once you made up your mind, there is no turning back. Otherwise, you will be forfeiting the P5,000 reservation fee you paid.

There’s no need to worry about repairs and maintenance.

This is the beauty of buying a brand-new car. The presumption is you are getting a car in good running condition since it is new.

That being said, you don’t have to worry about repairs and maintenance since you are the first owner. You can use it without worrying about breaking down anytime soon and you save yourself a trip to the mechanic to have your car checked.

You don’t have to worry about resale value.

Ideally, cars will stay with you for as long as possible. If you’re looking for a car that will last you and your family a lifetime, then brand-new car is your best bet.

Take note that cars depreciate over time. If what you’re after is reliability and a car that will bring you from point A to B for as long as possible, then buy a brand-new car instead. 

Don’t forget to ask for freebies.

One of the perks of buying a brand new vehicle is the freebies car companies could give you. Some offer free car tint, mats, or a discount on your insurance policy. Make sure you ask your sales rep regarding this to add more value to your money.

Go for Second-Hand Car

Getting a car loan may not be easy.

Some lenders allow car financing but they are specific in year models. If the car is more than five years old, then applying for an auto loan could be challenging.

This means if you plan to get a pre-owned car, you need to prepare your pocket as well. Or, you could also ask the seller if in-house financing is applicable, although we caution you on this one.

You don’t mind if the car is not the latest model.

If your main concern is to bring you to a designated place and back to your home, then getting a second-hand car is not a bad choice at all. Just make sure you maintain the car properly so it won’t give you a headache even if it’s an old vehicle. 

Add cost of repairs and maintenance in your budget.

This is something you should seriously consider. Yes, you did not spend millions on a car but you need to spend few more thousands to ensure that the car is up and running.

Buying a pre-owned car means you might be required to replace car parts, which includes but not limited to:

• Car tires plus spare tire
• Battery
• Brake pad
• Shocks

You also need to check that all the car locks and windows are working for safety. You may get a car insurance for your car and the good news is the premium is generally cheaper compared to insuring brand-new vehicles.

Whether or not you buy a brand-new or pre-owned vehicle, the choice is yours. What matters most is that it is within your budget and the car is exactly what your family needs.

If worries are equivalent to money, then surely, many Filipinos are millionaires these days. Unfortunately, worry does not equate to growing your money. In fact, worry does involve money, which means you need to prepare for these concerns before it even happens. Otherwise, you might end up in debt and lose what you have just because you didn’t prepare early.

This is not just a Pinoy problem. In fact, this is a global problem. Every family, regardless of the race, should be concerned.

Before it’s too late, here are the most common financial emergencies you and your family should prepare for:

Emergency No. 1: Natural Disasters

Apparently, the Philippines experience more than 10 typhoons every year. For the past few years, the PHIVOLCS is warning the Filipinos about the impending earthquake or “The Big One.”

In other words, natural calamities will always happen. These calamities could lead to destruction, which eventually leads to loss.

Nothing beats early preparation when it comes to natural disasters. Having an Emergency Bag with food, water, and basic supplies could separate life and death in case disaster happens. Having an Emergency Fund is also helpful since your family could use it to get started. Getting an insurance coverage for your car and home could also help, although this could mean additional expense.

Emergency No. 2: Job Loss

OFW life is unpredictable. You’ll never know when disaster or political turmoil will struck the country where you’re working. There is also a possibility that you might be sent home due to variety of reasons such as redundancy, bankruptcy, and even co-workers stabbing your back.

This is why we always stress how important savings and investment are while you are still working overseas. You earn more, which means there is a higher chance that you could save more. Make the most out of your time there by working hard. If your health and body permits, get another side job or put up a small business back home for your backup.

Emergency No. 3: Medical Issues

Who doesn’t get sick? Everyone in the family, including you and most especially you, will experience weakness from time-to-time. If you don’t take care of yourself, then all of your savings might go to medical expenses.

Having a dedicated Emergency Fund could help address any medical emergencies. If you can’t fully commit to your P100 per day savings, then at least get yourself covered. There are several insurance companies that offer health insurance coverage to OFWs like you. Take advantage of that because who knows what’s going to happen to you, right?

Of course, prevention is always better than cure. Eat healthy, sleep well, get some rest, and learn to say no to things presented in front of you. Remember, health is wealth.

Emergency No. 4: Home Repairs or Renovation

Let’s say the roof is leaking or the pipes in the kitchen were busted. You could either fix it immediately or not worry about it until it gets worse.

Clearly, you are for option number one.

It’s hard to predict when home repairs are needed, which is why it is important to be prepared for it. Your Emergency Fund plays a crucial role in this, so make sure it has sufficient funds to cover for the expenses.

Emergency No. 5: Business-Related Expense

This is applicable if you have an existing business.

Having your own business, no matter how small it is, could help you a lot while you’re still working overseas. It helps augment finances back home and the burden does not necessarily lie on your shoulders alone.

Of course, maintaining a business could also mean costs. You might experience shortage in your cash flow, which could translate to inability to buy new supplies or late rental payments.

The good news is there are financial institutions like Balikbayad that could help you on this arena. You could borrow up to P500K with low interest rate and minimal requirements. Simply fill out the online application form and a Balikbayad representative will get back to you as soon as possible.

The bottom line is preparation. These emergencies may or may not happen but at the end of the day, what matters most is how well and how early you prepared for it. You can do that starting now.

At this day and age, almost everything can be done with just several clicks. Believe it or not, you could pay your bills, do some shopping, transfer money, and make reservations among many others online.

Because of this, banks are slowly transitioning to digital or online banking. After all, it is more convenient to do transactions online. Instead of going physically to the bank, all you need is your phone and Internet connection to do what you have to do.

Apparently, not everyone are willing to join the bandwagon and go digital. Many are scared of potentially losing their money, a concern that is totally understandable. If you are an OFW, then digital banking will make your life easier.

In fact, here are the pros of digital banking:

You can bank anytime, anywhere.

This is, by far, the top reason why you should go digital when it comes to banking transactions.

Picture this: you are on your way to work when you received a message from your wife back home about an emergency. They need the money and you don’t have time to look for a bank or remittance center where you can send cash.

Through digital banking, you will be able to do banking transactions like transferring funds or paying bills. You can also easily check how much money you have left in your bank account.

Going back to the scenario, you could simply connect to the Internet and send money to your family back home.

Banking fees are reduced.

Every movement in the bank entails cost. In fact, one of the reasons why banks charge higher interest rate or require you to pay processing fees is because they need to cover administration expenses. Banks have to pay for their employees, maintenance and security personnel, banking equipment, and the list goes on.

Digital banking reduces these fees. When you transact online, manpower is eliminated. This is also the reason why they don’t require you to have an initial deposit and maintaining balance, which is good for you.

Paperless transaction is encouraged.

Admit it. You tend to keep receipts and documents given by the bank to make it easier for you to trace your transactions. When you do this, you invite clutter in your room.

This is the beauty of going paperless.

Did you know that by embracing digital banking, you could help rehabilitate million hectares of degraded forest? Who knew this could be eco-friendly, right?

On the other hand, digital banking could be an issue. Here are of the disadvantages of going online:

There are cash deposit issues.

Transferring money is not an issue. What if your bank account has limited funds and your family back home needs the money? Obviously, your phone cannot accept cash deposits, which is one of the biggest concerns for digital banking.

To address this issue, banks partnered with financial firms like DragonPay and Visa to make it easier for you to deposit money. You could also deposit money through Bayad Center, a task that you could do in case you’re in the Philippines.

7/11 is another option where you can deposit money through their digital kiosks. 

You are prone to cyber-attacks.

This is the biggest issue surrounding digital banking. Despite the convenience, there will always be cyber-security issued that could potentially affect your current balance.

The good news is you could do something to protect yourself and your money against hackers.

Here are safety features you need to do and remember:

• Assign stronger passwords.
• Change your password regularly, preferably once a month.
• If two-factor authentication feature is offered, then make sure you enable it.
• When doing online banking transactions, make sure you connect to a secured network and avoid using public WiFi access.
• Password should be for your eyes only. Never share it with anyone.
• Download and use the bank’s official app or website.

Should you go for digital banking? There’s no problem with that. Just make sure you take note of the safety features to protect your account.