Filipinos working abroad have always been on the rise owing to ample opportunities available in countries abroad to match their education and skills. Luring pay packages, ample growth opportunities, better lifestyle are some of the reasons why a Filipino chooses to work in a different country. Generally known as Overseas of Filipino Workers(OFWs), this category of people work in a foreign country either permanently or temporary basis.
OFW’s continue having association with Philippines either by means connection with family members residing in the country or via investment they’ve made such as a property. Most of the OFWs are likely to return after a fixed assignment or after a certain numbers of years abroad. Since Philippines will always be considered a home, a Filipino will look forward to remitting monies to immediate family members residing in the country to support the family and to invest further in the financial market and the banking system.
Since it's the hard earned money at stake, an OFW should choose to spend wise and invest into savings and financial instruments in the Philippines to secure the future and current needs of the loved ones. Philippine economy has been growing at a steady pace over the last couple of years. Owing to increase in purchasing power backed by a sound financial system, the economy has been on the surge to be one of the best performing economies in the whole of Asia. Naturally, this is the right phase for OFWs to route earnings into the system to maximize returns. Let's explore some of the most suitable financial solutions for your hard earned money.
Chalk Out a Plan With Your Family
While you’re going to be away from the family, trying to earn a respectable income, it's important to jot down the financial commitments of the family as a whole before or immediately after your work assignment starts. If you’ve children, come up with a solid plan on monthly budget and your contribution towards ensuring a respectable life for your family. You must also look at long term goals such as planning retirement and coverage for health related challenges.
Open a Bank Account in Philippines
Perhaps, the first step to kick start the savings and investment journey. If you do not have a bank account, ensure it is opened at the earliest, preferably with spouse or a family member holding the account jointly. You can also add nominees to the account. Having an active bank account help you transact seamlessly from anywhere in the world via online banking channels.
Make Regular Remittances
Needless to say, send money to your folks back home at regular intervals. If you’re the breadwinner, your remittances probably have to be of a larger value. Sending money regularly may also make you eligible for certain types of benefits from the government. While doing so, make sure only acceptable channels are used to send money.
Consider Investing in Viable Instruments
The economy has been growing like never before. This is the right time to make your money work for you. If you haven’t done so, start investing in a mix of secured as well as market linked instruments such as Time Deposits and Mutual Funds in the Philippines to help you derive the best returns for your money. Time Deposits are known for its ability to offer fixed returns over a period of time while Mutual Funds offer better returns since they are reinvested in experts into carefully chosen instruments in public and private space.
If you’re a risk taker and looking forward to higher returns, try to invest in stock markets.
Take A Loan If Needed
There are various phases in life where you would need a loan for finance a specific requirement. Events such as marriage, children's higher education , buying a house require a considerable amount of money. As a Filipino employed abroad, the salary earned may be considerably high but not sufficient to cover the financials related to a particular event. In such situations, take a loan and payback in installments. Nearly all banks in the Philippines offer loans from their retail lending portfolio to OFWs. Some of the most commonly available products are Car Loan, Housing Loan and Personal Loan.
Also read : Personal Loan for OFW
The financial security of your loved ones should be of utmost importance. Imagine, if something unfortunate happens that results in loss of income on a temporary or permanent basis leaving you and your family in a dire situation. In order to provide a financial cover for such situations, get self and family members insured. Some of the most basic insurance products once can avail are Life & Health. Ensure the coverage amount chosen is sufficient enough to cover all the family members, keeping in mind the future expenditure.
Keep A Track of the Philippine Economy and Banking News
It's important to know what is happening in Philippines. Use online resources to read and understand news relating to the business and economy with a view to grad any potential opportunity that comes your way. Some of the most exciting investment opportunities do not last for long.
Plan for Retirement - OFW
There is no phrase called “Too Early” to plan for retirement. Considering the rising inflation, your savings and investments may fulfill post retirement aspirations. Along with ensuring maximum savings, look out for retirement plans which provide vetted returns after retirement.
If you’re looking for investing in Time Deposits or planning to take a loan, it's paramount to compare various offers from banks before making a choice. As an OFW, you can be eligible for tailor made loans or deposit options. Do make sure you compare products on this site before applying.
Also read : Credit cards for OFW