The iSavta Team | 13.11.2019

 

Working overseas as a caregiver is difficult but may reward you with a bigger salary compared to working in your country of origin.  With a bigger money earned, your purchasing power also becomes higher which allows you to buy things which are not necessary. If your goal to work overseas is to save money, then be reminded to only spend within your means.  Here are some tips below to help you achieve your goal of saving money.

 

1. Pay off your debts

Assuming you have debts, secure to pay them off first after you have allocated funds for your monthly needed expenses.  Paying off debt is not necessarily saving but it will give you a peaceful mind knowing that you are out of debt. By then, you should be able to concentrate on saving.

 

2. Allocate 20% of your salary to savings

As a rule of thumb, it is advised to save twenty percent of your salary.  You should not be utilizing this money while working and should be used for a long-term goal like purchasing a house and lot, a car, or preparing it as a retirement fund. Open a savings account without an ATM card or passbook so that you would not have easy access to your money.  This would hinder you from unnecessary withdrawals and would guarantee your savings be untouched.

 

3. Emergency fund

Not having an emergency fund is a reason why many people borrow money when there are unexpected expenses such as accidental expenses or hospital bills.  Establish an emergency fund that could cover at least six-months of your living expenses so that in case you will be out of job, you will have money to survive day-to-day while looking for another job. 

This amount may be huge but you can save up for this by first, calculating your monthly cost-of-living.  Divide the result in half. If you can save this money in a year, then you will have a six-month emergency fund available for the next year.  Set up another bank account for your emergency fund and see to it that you would not have any means to easily withdraw the money. By not having an ATM and passbook at hand, you will find it difficult to withdraw the money and will only do so at the bank when the time of need comes.

 

4. Make a budget and Plan your spending

Using the money you have left after deducting the amount you need to save for your long-term goals and your emergency funds, allocate money for your personal priorities and needs.  In-house caregivers abroad are blessed not to be spending much for food and housing anymore as it is provided to them. Your priorities could be the education of your children, giving monthly cost of living allowance to your family, or helping a sick family member with their medical bills.  Whatever your priorities are, plan your budget in a way that you allot a bigger percentage of your salary in accordance to how they are ranked (for example: 1st priority – education, 2nd priority – paying medical bills, and so on)

 

5. Be consistent

Make it a habit to save.  Don’t just save money when you feel like it.  Self-discipline is a trait one should have in order to have regular savings.

 

6. Pay your bills on time

If you have bills to pay at home, then you have to make sure that they are being paid on or before the due date.  By doing so, you can avoid any late fees or interest that may build up.

 

7. Avoid credit cards

Credit cards have some perks and disadvantages.  If you have good control of your purchases, then having a credit card might not hurt.  However, in most cases, people with

Credit cards tend to purchase nonessential stuff online.  Credit cards are faster to use which means that it is easier to lose money for things that are not needed.  It also gives you an impression that you have more money than you actually do as you have cash to spend and a credit limit that you may use to purchase.  Avoid this temptation by using debit cards instead.

 

8. Use the 24 hour rule

If you have any non-necessary purchases, think over it for at least 24 hours.   This rule helps you avoid purchasing nonessential items on impulse.

 

9. Leisure

Limit your leisure activities.  It always feels good to treat yourself some good food, buying gadgets, or traveling to another place you haven’t been to.  However, this should be done rarely as these are unnecessary expenditures. Self-reward is important but see to it that you are not doing it often.  Practice doing so only when you have accomplished something big.

 

10.  Invest

Once you have extra money, invest them in treasury stocks and bonds of the government.  They have lower risks compared to private stocks and bonds. You will be able to earn high yields in your investment once it matures.

Saving up money may be difficult at first but once you have the eagerness to form it as a habit, you will definitely reap the rewards of your work.  With self-discipline and devotion, you will be on your road to financial stability.