5 Things OFWs Should Know About Staying Financially Healthy

The OFWs’ contribution to the Philippine economy is outstanding. Between January to May 2019 alone, OFW remittances have reached $13.7 billion. Reports also show that transfers made through banks contribute to about 70% of the country’s gross domestic product.

Despite being able to provide for their families—and their home country—though, working as an OFW is not a get-rich scheme. Like many employees here in the Philippines, they struggle to keep their finances in check.

Because of their desire to help their loved ones, a few may end up with a less than ideal financial health, only realizing later on in life that they also have their own future to prepare for, or even a possible critical illness to take care of. The lack of financial literacy among many Filipinos also has something to do with it.

It’s about time for OFWs to get what they deserve in exchange for the sacrifices they had to endure. This starts with understanding the real value of personal finance and staying financially healthy for years to come.

1. The spending habits of OFWs are the same as everyone else
   
   As already mentioned, an OFW is no different from an ordinary worker in the country when it comes to spending—the only difference lies in their source of income.
   
   Most of them live modestly, in fact, so that they can send as much of their income to their loved ones as possible. And even after ending up having too little for themselves, they sometimes still have to take loans to address the additional needs of their families.
   
   In the same vein, OFWs need to make and stick to a budget—no matter how hard it is—so that they can spend on their needs, continue to provide for their families, and save enough that they don’t have to be separated from their loved ones for too long.
   
   
2. Having a financial goal is not optional
   
   You’d want your sacrifices to go somewhere valuable; that’s why even before applying for a job abroad, you should already have your financial goals set. Whether it’s for your own or your loved ones’ benefit, realistic financial goals will put you in the right direction.
   
   The most basic financial goals include saving for your retirement, ensuring your assets, and investing your money to grow. Another goal that you should consider is building an emergency fund. While getting insurance like Critical Care 100 can help you avoid hefty medical bills, rainy-day funds can serve as your cushion not only for medical emergencies but other financial setbacks, too.
   
   
3. Having “the talk” with your family is a must
   
   Many Filipino families have unrealistic demands from their OFW relatives, stemming from the belief that they will be getting more than enough compensation from their work. However, for OFWs, keeping up with the demand could mean difficulty in building up their savings. That is why discussing money matters with your family is necessary for staying financially healthy.
   
   Before leaving and after setting your financial goals, let your family know what you aim to accomplish. Inform them that aside from personal ones, you also have goals set for them—for example, buying a new house in five years. This way, they will understand why you have to set limits with the amount of remittance and see the bigger picture of why you have to work abroad.
   
   With your goals properly communicated, your family now has an idea of what to expect, especially in terms of financial support. It also doesn’t hurt to check if necessary payments and bills are being made on time. This helps you ensure all bases are covered and that there will be no surprises that will hurt your finances once you return to the Philippines.
   
   
4. Know your priorities
   
   Seeing that you already have your goals in mind, it now makes sense for you to know which to spend on and which can be left for next time—but this is more than just realizing what your needs are from the wants.
   
   For instance, you may have relatives outside of the immediate family who are dependent on your remittances but technically not part of your budget. If you have money to spare, helping is well and good; but in reality, this isn’t always the case. Just because a relative is an OFW, doesn’t mean he or she automatically becomes solely responsible for putting food on everyone’s table.
   
   It’s an outdated mindset that should change. You can help as many relatives as you want if it permits, but you should always keep your goals in mind, and know that you can’t support everyone and leave yourself next to nothing. The same goes for buying expensive or high-end things just to show off. If it’s not a necessity for the long run, then it’s best not to spend on it.
   
   Save for yourself, avoid over-remitting, and focus on the endgame.
   
   
5. Being an OFW is not for forever
   
   One of the main issues OFWs face when they return to the Philippines is that they have no other career to fall back to. This is especially true for laborers who are probably too old or frail to still do their usual work.
   
   That’s why it’s imperative to work on a passion project, accept part-time jobs, or start or invest in businesses, trust funds, stock market, and other ventures—basically, anything that will put your money to work or earn you passive income.
   
   You will eventually go back home, but the bills are still not going to pay for itself. Don’t always assume that your kids, spouse, or other relatives can shoulder everything. Maintaining a household requires teamwork, and your help is expected, especially if you’re still financially stable and able.
   

The value of financial health for OFWs

For OFWs, being financially healthy is a team effort that requires understanding and cooperation from your family at home—and to some extent, private and government institutions.

The best way to show appreciation for the contributions OFWs have made for their families and the country is to help them take care of their future, whether it’s through spending their padalas wisely or teaching them how they can make their savings work, so they can spend more time with their loved ones again.

If you’re an OFW or you know one, visit any of the 900 BPI branches nationwide and learn from our Bancassurance Sales Executives about how you can be financially healthy today.