It has always been hard for Overseas Filipino Workers (OFWs) to be separated from their families as they work abroad. Much harder it is for them to maintain financial stability through the years out of the meager incomes these OFWs receive and the lifestyles they keep.
Wealth cannot be achieved overnight simply because a member of the family is working abroad. It simply means having enough money to provide the family’s basic needs, a few of what we want, and be able to give some to others. It may be true that the generated income from abroad is higher, but how to keep this money in our pockets is the biggest challenge.
Wealth cannot be achieved overnight simply because a member of the family is working abroad. It simply means having enough money to provide the family’s basic needs, a few of what we want, and be able to give some to others. It may be true that the generated income from abroad is higher, but how to keep this money in our pockets is the biggest challenge.
The famous financial analyst in the United States, Suze Orman, came to the Philippines and shared some of her expertise on how to handle your finances. Her financial advices are truly an awakening and must be heeded by every Filipino. Her rules are so simple yet hard to do. Orman urged Filipinos to live below their means, but within their needs. She encourages people to get as much joy out of saving as one does out of spending. She also warns Filipinos not to dwell much on credit card debts whose interest rates soar as much as 36% in a year. Instead, she wants them to make a habit of buying things in cash.
She stressed that one does not have to buy things and go places in order to impress other people, especially people they do not like. Material things and possessions will never define who we are. One should be satisfied, contented, and proud of what we have and what we are. Instead of focusing our minds on buying things, it is imperative to save.
According to her, the first step in saving money is to purchase a house instead of paying rents for something that will never be ours. She emphasized that owning a house will make us feel secure and safe, considering the fact that the reason we aim to acquire money is to keep us secure and safe all the time. Owning a home makes us feel powerful. So every time an OFW sends money to the Philippines, they should know what should be on the top of their priority list.
She stressed that one does not have to buy things and go places in order to impress other people, especially people they do not like. Material things and possessions will never define who we are. One should be satisfied, contented, and proud of what we have and what we are. Instead of focusing our minds on buying things, it is imperative to save.
According to her, the first step in saving money is to purchase a house instead of paying rents for something that will never be ours. She emphasized that owning a house will make us feel secure and safe, considering the fact that the reason we aim to acquire money is to keep us secure and safe all the time. Owning a home makes us feel powerful. So every time an OFW sends money to the Philippines, they should know what should be on the top of their priority list.
She also urged Filipinos to invest in mutual funds and investment funds as they do not require anything to keep, to replace, and no capital gains tax. Mutual and investment funds are good places to put our money since the Philippines has the potential to go further in terms of its economy. Also, we can sell these funds at anytime unlike in real estate investments where we cannot sell them right away in case we need the money. It is also possible that prices in real estate may suddenly drop and will not give us back the amount we expected, when sold.
Orman also warned Filipinos that jewelry is not a good investment since its value depreciates. It simply means that we cannot sell it more than the price we payed for it. In the long run, jewelry gets lost and may even be stolen.
Overall, she urged Filipinos to save, to invest, and to be ready for their retirement. Investing money is not just for the rich, but it is for people who look for security even after retiring.
“You cannot put off preparing for retirement any longer. One is never too young to start investing, but there will come a point when it becomes too late,” says Orman.
She encouraged Filipinos to educate themselves with the importance of saving and familiarize themselves with many investment options in the market.
“If I could just educate everybody to, rather than buy that watch or gadget, put that amount in a mutual fund, then I would be okay,” says Orman.
“I believe that once people experience how it is to save money, they will realize that it leaves a better feeling than acquiring a new watch,” she adds. “Once they get a taste for it, they will keep on eating it.”
Orman also warned Filipinos that jewelry is not a good investment since its value depreciates. It simply means that we cannot sell it more than the price we payed for it. In the long run, jewelry gets lost and may even be stolen.
Overall, she urged Filipinos to save, to invest, and to be ready for their retirement. Investing money is not just for the rich, but it is for people who look for security even after retiring.
“You cannot put off preparing for retirement any longer. One is never too young to start investing, but there will come a point when it becomes too late,” says Orman.
She encouraged Filipinos to educate themselves with the importance of saving and familiarize themselves with many investment options in the market.
“If I could just educate everybody to, rather than buy that watch or gadget, put that amount in a mutual fund, then I would be okay,” says Orman.
“I believe that once people experience how it is to save money, they will realize that it leaves a better feeling than acquiring a new watch,” she adds. “Once they get a taste for it, they will keep on eating it.”
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