Bad Spending Habits of Overseas Workers
Overseas Filipino Workers are considered heroes of the modern Philippines because of their contribution to the economy. Millions of dollars are being sent every year from all over the world because of them.
But, most of the OFWs are still buried in debts and financial obligations. Many of them, no matter how high their salaries are, still fail to manage their finances well. Some even went home with nothing but feeling tired, old and sick after years of working abroad.
One of the reasons why many OFWs are still not financially independent is their bad spending habits.
1. Budget is for regular consumption
Most of the budgeting is for regular consumption like food, tuition fees, utilities or clothing. Only a little or nothing for savings and investments.
2. No savings for rainy days
Many OFWs claim that they are setting aside something for emergency but study says that only 1 out of 5 of them is really doing it.
3. Impulsive Buying/Decisions
Not because you’re angry, sad or happy, you need to break your wallet. Emotional-driven decisions are bad decisions especially if it involves your finances.
4. Wealth Shock
Some OFWs were overwhelmed with their salaries because it’s in dollars especially those who went abroad the first time. Some are even in pressure to prove their worth to relatives or friends. These result to overspending and financial problem.
5. No goals or plans
Most OFWs went abroad for the sake of going abroad. Whether it’s for work or just running away from home. There is no definite goal or plans on their mind. This also results to overstaying abroad but still having no savings at all.
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Vince Rapusa, CEO of Social Enterprise Development Partnerships Incorporated (SEDPI) said, "You have to be sure of what you want. You have to establish your financial goals and that should be put into writing in your financial plan,"
An OFW must invest on something in the Philippines to sustain the day to day need of his/her family back home. The earnings abroad should be investment on something long term like insurances and savings.
After that, you'll have to manage the changes in your lifestyle to meet your goals.