Traveling and moving abroad can be an exciting adventure. You get to explore new places and culture and get to show your talent on a wider platform outside your country. For OFW’s apart from these amazing perks there is a downside too.
They have to live outside the Philippines alone away from their loved ones who can take an emotional toll on them. Apart from the emotional stress, there is a problem of finances too. They need to manage their finances and also send some money back to their loved ones in the Philippines.
Due to the high exchange rate, the expenses can be high and difficult to manage. Due to this reason, many OFW makes money mistakes which are irreversible. Mentioned below are the mistakes which they should be aware of.
- Too many loans and debt
While applying for a loan is a good idea to get a head start on your venture, but it can go south pretty quick if not done in the right way. Taking too many loans is the first bad financial decision you may take. You can apply for OFW loan and reap the benefits, but it is very important to manage them properly as they come with a lot of risks. Your good debts can soon turn into bad debts if not managed properly.
- Spending recklessly
When an OFW receives his first Cheque, they get a sense of empowerment, and they spend it all and save no amount. While enjoying your salary seems satisfactory but spending it recklessly can leave you in debts. You have to save some money for yourself and your family back home in the Philippines. You can save money or get a high return by making sound investments to have a secured future.
- No job security
There is no job in this world which is perfect and a hundred percent secure. An OFW has to keep in mind that they aren’t going to an OFW forever. They are an OFW only till an employer is willing to hire and let them work in the country. This willingness is often mistaken as a perfect job security. These events should be planned, and the following consequences should be sorted by having backup options.
- No rainy day fund
This is a very common mistake Filipinos make. Setting aside some emergency money is very important. You never know what circumstances you will face; therefore setting some emergency money is very important.
- Not investing
The best way to have a higher return on your money is to invest it. Many Filipinos make this mistake and don’t focus on investing options. It is a common mistake that should be avoided.
A personal loan application is a good way to have some money for a start up but getting too many loans which cannot be fulfilled is very dangerous. Don’t make the mistakes mentioned above and you can have a secure and better future.