I am not a financial adviser; Iam just an ordinary overseas worker like you who has a dream, a dream of havingfinancial freedom. I was enthused to share you the importance of financial literacybecause I know we all have the same dreams.
Saving for the future is our maingoal here and in order for us to gain financial freedom a very strong disciplineabout money handling should be observed. Not just OFWs' need financial literacybut our families as well who were recipients in our remittances. They shouldknow financial management too.
Different government agencies andprivate institutions offered Financial Literacy. If you could remember duringthe pre-departure orientation seminar under OWWA, bank representatives gavedetails on your remittances and saving scheme perhaps you forgot all those thingsor has no concentration due to excitement in leaving the country.
Financial sustainability takesresponsibility and financial literacy. In order for you to see the fruits onyour hard earned money you should know the discipline of saving and investment.Overseas workers sometimes overwhelmed by their monthly pay check. Instead of planningto save they plan on buying stuff and gadgets like iphone, androidor smartphone etc. etc... Others send money more than what is needed for thefamily. As a result their social status changed needs and wants changedas well.
Saving is a sacrifice where mostof us overseas workers lack this attitude. But it's not too late as we arestill in the doorstep of 2011 it is a good time to start saving and see whereour hard earned money goes.
These are my suggestions.
1. Read self help books -I recommend Francisco Colayco's book "Pera mo palaguin mo"(Philippinebestseller financial book) I actually bought one 3 years ago and shared it tomy colleagues. You will be inspired uponreading self help books.
2. Attend meetings/seminars aboutfinancial management- BPI and BDO were just two banks offered financialliteracy program. NGO's also offered financial counselling.
3. Hire Financial Adviser-their expertise helps you whether to venture into business or in someinvestment that your money could earn. Banks also offered Mutual funds, Stocks,and High yield time deposits just ask your bank representative about this.
4. Manage you remittances-send only how much is needed by your recipient. If you send more than their needsthey will demand more. Sometimes our families back home never mind on how muchthey spend thinking that we still have more to send. Telling them the truth ofhow hard it is working abroad will give you sympathy and they will value yourmoney.
5. Live a very simple life - livingin a luxurious life demands more spending. You can maintain your social statusby not draining your pocket; spend to your own capacity. Overspending makesyour life terrible you will end up on credit cards and loans with high interestrates.
6. Make an emergency fund-expect the unexpected. That is why we have to save for the rainy season and beready for it. According to the financial adviser we have to maintain anemergency fund for at least 6 months. This emergency fund covers your supposedmonthly expenses including your monthly amortization, bills on water andelectricity, foods and other house expenses. You can use this only if you wereout of job. That is why 6 months the minimum for you to still have time to lookfor job with no worries. Some suggested that an emergency fund should beatleast 20% taken from your monthly salary.
7. Apply for an Insurance plan-assuming your company provide medical insurance but that is still not enough. Medicalinsurance has limitations. Insurance plan is a long term program that will keepyou secured, Social Security System (SSS) and the Pag-Ibig Fund in anotherinteresting investment program. I recommend OFWs' should maintain their statusin these programs.
OFWs' futureis not always certain and our financial security depends in our hands thoughthe Philippines government has implemented with all the governing agencies to empower OFWs'about financial freedom. But it is oursole responsibility to reach our dreams and that is to have a good future.
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