Financial mistakes that will prevent you long-term financial stability

The OFWs steady cash flow every month in form of remittances provide more than the basic needs of their families in the Philippines. The sudden improvement of financial standing changes their lifestyle and living conditions. They can now afford to buy material things and keep up with the latest trends. The downside is the tendency to live extravagantly and overspend which lead to debts. Borrowing is not bad if the objective is to create additional source of income like business or investments. OFW loan for ph is one of the most popular types of loans.

Stay away from financial mistakes that will prevent you long-term financial stability such as:

  • Spending future income

 

Many are guilty of this- “May darating naman na remittance sa katapusan, so I might as well buy this stuff by borrowing cash from someone.” This mindset and habit can get you into financial trouble pretty soon if you do not stop at once. It’s a big no-no!

 

  • Changing your lifestyle

 

Giving the life that you always wanted for your family is the best gift you could ever give to them. However, there is a temptation to live extravagantly and spend more than your earnings. The lure of credit card spending is also tempting.

 

  • Not setting aside money for emergency fund or savings

 

Many OFWs send huge portion of their salary to families in the Philippines and leave just small allowance for personal expenses. They often sacrifice a little luxury for the sake of the family. They plan to save but often times they forget because of the demands of their families.

 

  • Always saying “Yes”

 

Granting all the whims of family and even relatives is not good. It is okay to help your relatives but sending money to finance a birthday party of your brother’s son is not wise especially if you will be borrowing from co-workers.

 

  • Being a “show-off” or “pasikat”

 

Avoid bragging your new-found lifestyle and acquisition. If you make it a habit, sustaining your “rich” image will make you financially- stressed.

 

 

 

 

  • Acquiring property or asset without plan

 

Without sure payment plan, this can affect your current budget. Goals such as buying a new car, house or commercial lot need sound planning. These goals will also motivate you to save, get additional source of earnings, work harder, sacrifice whims or secure loan. As Filipino working abroad, the OFW loan for ph is one of the best options.

 

  • Falling for bad investments

 

Because OFWs earn more and can afford to pay, they become easy prey for scammers. Always check the investment offer especially if it promises double-money guarantee in a short period of time.

Take care of your money.. What will happen when your contract expires and you do not have enough money during the waiting period? If you do not have savings or emergency fund, life will be difficult for your family. . Be wise. Your future is in your hands.

 

 

 

 

 

Steps to manage your money and build your wealth

 

There are many sad stories about OFWs coming home without realizing their goals of securing financial security despite long years of working abroad. It is heartbreaking to see old people who spend most of their adult lives working without sound investments. OFWs must therefore be more financially-smart in order to enjoy the fruits of their labor when they decide to return in the Philippines. The best ways to build a brighter future while working in foreign lands is to save and invest to pursue their long-term dreams. For short-term goals like putting up a small to medium business, saved fund can be augmented with borrowed money. The easiest way to get additional money is to avail an OFW loan for ph. The approval period is fast so you and your family can start achieving one of your goals.

Steps to manage your money and build your wealth:

  1. Assessment of your financial status

 

What are your current assets, liabilities, income sources and investments? Make a list. Review them to find out your current financial standing.

 

  1. Make financial goals

 

Building wealth is not just working hard, earning much and buying properties. It is about planning and achieving them as soon as possible. It is imperative to make realistic and specific financial goals with deadlines. This will motivate you to save and set aside percentage of your monthly earnings for the future. With plan and deadline, your goals become more quantifiable and clear.

 

  1. Invest your money wisely

 

Aside from saving, another way to grow your hard-earned cash is to invest it. There are different forms of investments. It is advisable not to rush. Explore, study, and review every option that interests you. Start slow by investing minimal amount like P5k-P10k. If you are a risk-taker, you can diversify and get more investment options. This will help your money grow faster. Do not place all your eggs in one nest to be safe from possible loss.

 

  1. Borrow money for a good reason

 

 

As much as possible, refrain from borrowing money but if your purpose for instance is to finance a new income-generating business or real estate property, then go ahead. Just make sure to pay your obligations diligently to have a good credit standing. Best if your business or investment can pay for the loan as soon as it is able to.

 

Many lending companies offer loans to Overseas Contract Workers. An OFW loan for ph helps you fast-track financial goals. As your business grows, you can secure loans from banks if you need millions.

 

Do not make your OFW story a sad one. Aim for success by learning how to manage your money and build your wealth.