10 Tips For OFWs to Become Successful

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All of us wants to be successful in every career we choose in life. Same for Overseas Filipino Workers (OFWs) because no one wants to work abroad forever! But if we look into our society, there are many OFWs come home broke or retired without single investment. 

If you are an OFW and want to be successful, consider this 10 tips.

1. SET A CLEAR GOAL

In goal setting, it is vital to include your family. Discuss with your family what you want to achieve while working abroad. For example in a year or two you, your goal is to put up a small business to help the need of the family or buy a tricycle or jeepney for an extra income in the Philippines. 

In five years you could start building your dream house etc. This goal for your family will serve as your motivation and inspiration to work abroad. Your family needs to know your goal so that they can help you achieve this for the good of everyone.


Read: Tips for OFWs Who Wants to Return Home Earlier

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2. CONSIDER THE COST OF APPLYING FOR JOBS ABROAD

Applying for work overseas needs money. Placement fees, payment for processing of documents, passport and medical certificate, training etc. Ask yourself first, where will you get money for this? Selling your house, selling a piece of land that your family owns? If working abroad means losing your families valuable properties, you might re-consider your plan. Getting or buying them back will eat a big part of your earning, making it hard for you to save for the future.

3. SAVE-SAVE-SAVE!
If you want to be successful it is important that you know to "pay yourself first". This means, never forget to save a portion of your monthly salary for yourself. Saving 20 percent of your monthly salary is not bad. Do not send everything home. Your savings could save you from debt. It will serve as emergency fund too. 

Our family at home often times runs to OFWs in case of medical emergency. But what happens if the OFW doesn't have savings? He or she will seek a help from loan sharks with big interest. This is the reason why every OFW should a lot a small portion of their savings for savings.

4. INVEST WISELY

Your savings will now turn into an investment. But before venturing into something new. Every OFW is advised to carefully planned everything. If you want to buy a house, would it be a good investment or a dead investment? How about a car? What you turn your savings into a capital for a small business? How about franchising? There's a lot of things to consider when comes to investment but make your you are not putting your money in a scam.


Read: 7 Payday Tips for OFWs To Save Money for the Future!

5. START A BUSINESS

Since OFWs cannot focus or start a business in the Philippines while working abroad. It is important to seek the cooperation of the family. Business is a good form of investment if being managed well. Know the passion or skills of your family where you can mold some ideas for business. If your wife knows how to bake or make pastries, why don't you open for a small bakery. If someone in the family has the talent to cook then put up a Carenderia and so on. Sometimes talents are innate and people just need capital and guidance.

6. EDUCATE YOUR FAMILY ABOUT MONEY

Educate your family that every cent you sent home is a product of sweat and hard work. If you are saving for your self, your family should do the same. Remittances should be spent wisely and not in extravagant want. Remind your family to spare a portion of your remittance for an emergency. Also remind them about your goals together to that everyone can cooperate.

7. AVOID OVERSPENDING

There are times OFW spend half or three-fourths of his savings for Pasalubong, Pakain, and Pa-inum while on Vacation. Pasalubong is normal but do not feel obliged to give presence to almost all people in your barangay. 

Avoid overspending just to impress other people. Some OFWs tend to loan big amount for their vacation so that they have money to spend with every people who ask for a "pasalubong". Remember, your mere presence is much important for your families and people who truly love you. No need for pretensions.

8. APPLY FOR INSURANCE

If you serve as a bread winner for your family. Get an insurance for yourself. Ask this question, what will happen to my family if I am gone? Health and life insurance are important. If you are secured, you can start securing your children's future by getting educational plans for them.

9. LEARN A NEW SKILL

Learning a new skill is never a waste of time. It will add value to you as a worker and it will help you grow as a person. 

10. REWARD YOURSELF

Aside from your goal, another motivation to work is simple reward for yourself. If you want something for yourself and you are saving and working hard for it, then you deserve it.

Read:7 Practical Tips for OFWs to Earn Extra Income

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Where and How Do OFW Families Spend The Remittances They Receive?

One reason that keeps the Philippine economy afloat are the dollar remittances coming from the Overseas Filipino Workers (OFWs). It is being sent to their families who spend them for their everyday needs. 

In December last year, OFW remittances reached a new record high of $2.56 billion  which exceeded government target.

Bangko Sentral ng Pilipinas showed that the cash remittances last December were the highest monthly inflow to date and were up 3.6 percent from the $2.47 billion during the same month of the previous year.

Remittances serve as the direct outcome of labor migration and the most important source of dollar reserve for the country. Though the years, the OFWs acted as a savior of the Philippine economy. Almost 10 million OFWs and counting leave their families behind and work for slightly higher salaries they cannot find in their home country. They sacrifice in exchange for the better future they can possibly give to their family, hence the term "modern day heroes".

However, the better future they aim depends on how their family back home spend the remittances they send. That's why there are OFWs, after many years of working overseas, remain broke because they lack financial wisdom to channel these hard-earned money to the right expenditures. They most likely spend it to what they want instead of what they need.

How do OFW families spend the remittances they receive?
Bangko Sentral ng Pilipinas (BSP) survey of 2016 shows that recipients allocate their remittances more on consumables. For instance, 97.3 percent are for food and other household needs.
However,  Asia Development Bank (ADB) stated that families sometimes compromise and lower their food expenses. OFW families allocates larger portion of their remittances for education (70 %), purchase of consumer durables (21.9%), and house purchase (11 %), investment (6.5 %), and miscellaneous expenses (4.5 %).

The expenditure of the remittance-receiving families is closely monitored by the government because it reflects the general condition of the country. 

In this way, OFWs can expect a better return of investment because of the government efforts to further allow recipients to avail and spend more money on government programs. At the same time, investments on education and nonfood expenditure can impart a long-term growth on the economy because of the higher probability of producing better human resources for the country.

The government formulated programs for the OFW families to be financially literate. There are also programs for the spouses of the OFWs who want to start a small business to help their husband/wife who is working abroad.

Another expenditure of the family-receiving remittance is their allocation on savings. According to data by BSP, 43.2 percent of Filipinos who are considered mostly put their savings at home.

Moreover, a portion of OFW households, especially those who left the country for the first time, allotted part of their remittances for debt payments (46.5 %). Geographically speaking, large portion of the OFW households in the NCR allocated their remittances to pay their debts, for purchase of food and other household needs, they stretch their budget on what is left. Their budget for investment follows as they get rid of the debts.
If the OFW families could spend the remittances wisely with at least 30% would go to savings or investment, every OFWs sacrifices will not be in vain. They must work hand in hand to make the better future they aim to come into reality.

Many OFWs has now become successful in handling their finances by educating themselves and through government  programs.

The key is to determine how much do you need to allocate on expenditures and spend only within your means. 

Source: Asian Journal

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Dominador Say, undersecretary of the Department of Labor and Employment (DOLE), said that talks are underway with Chinese embassy officials on this possibility. China’s five major cities, including Beijing, Shanghai and Xiamen will soon be the destination for Filipino domestic workers who are seeking higher income.
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