Are You An OFW? You Too Can Invest In The Stock Market

Tweet

source: http://dinoacuna.wordpress.com

As you already know I am myself an OFW(Overseas Filipino Worker) and that it is not so impossible for OFW like me to invest in the stock market. 

There are so many OFW also out there in the world who from time to time drop me an email or a message either in my contact list or other means asking how can they start or open a account even if they are out there.

I have also posted a blog on why so many OFW are still not saving up because they or their love ones spend all the hard earned money on consumer goods or on lavish and unnecessary things. 

On my way to the airport last Saturday I was able to start a chat with the taxi driver who happen to have friends who have worked abroad. He mentioned that he has one OFW friend who is really a good worker but is not able to  save up because his wife is a gambler. Instead of having savings when he comes home, he is greeted by his wife's lender asking payment. He wish he could pay them but unfortunately he has already send the money to his wife. In order to stop this, what he did is he sends his money to his oldest son, who by the way is already gainfully employed and only acts a receiver of his dad's money which he deposits to his dad's account.

In Napoleon Hill's book, Think and Grow Rich, one of the problems or cause of failure is not having a good wife. Also in the Bible it was mentioned that a man is lucky if he has chosen a good wife, one that knows how to manage one's household and finances.

I am not saying that you have chosen the wrong wife if you are an OFW and up to now you have not yet save enough. What I want to point out is that you talk as a couple and plan your life together.  It doesn't mean that your wife can't enjoy some of the fruits of your labor but you should both decide how much of your salary which you send to your wife should be save or set aside, use for daily expenses, and spend for some comforts of life. 

Discipline is the  key.

Also you have to not only educate yourself about how to handle finances, you should educate your wife and children as well so that they would understand why you are saving up and eventually they would help out in scrapping more savings to have money place today in an investment which will reap better fruits in the future.

Also at the same time you must identify unnecessary expenses. At times we spend money out of convenience(I am guilty of this). If it can be deferred , then defer it. If there is a better and cheaper alternative go for that. If it is unnecessary all together then don't buy or spend for it. 

The key to saving up is accumulation, that is keeping more instead of losing more.

I hope I am able to reach all our OFW kababayans and I hope they start saving and contribute to our country's rise to the level it use to be.

How can an OFW return home and not work abroad anymore

Tweet

source: http://job-applicant.blogspot.com

The Philippines is one of the countries who rely on overseas worker remittances to fuel its economy. I am an OFW myself and it is true that working abroad gives one a better chance at having a better life due to the bigger pay. In addition, with that, most people look at an OFW as rich but in reality, the foreign exchange rate makes the difference.

Comparing one's salary in the Philippines against the one overseas may look like that the overseas pay is bigger than your pay here. However, most do not factor in cost of living overseas. Also, the lifestyle one has overseas affects one's saving power. An OFW might have bigger pay and thus has a better capacity to save but when one's lifestyle overseas is that of a spender there is no difference from an employee here in the Philippines worst yet when that OFW who spends while working abroad overspends he or she might go home penniless. A lot of OFW go home without even having their own home and end up bum in their sibling's house because they are accustomed to that lifestyle that they have overseas.

source: http://www.aiesec.org

On my way to the NAIA Terminal 1, the taxi driver is an OFW waiting for his Visa for Australia. We are able to share stories about the hardship of being an OFW and all his regrets why he didn't save while he is able. He has two kids to send to school so while waiting he drives taxi for a living. He now has a plan and that is to save up once he gets the work in Australia and start with one taxi. Probably by the time he gets enough money, he can send it to his wife who will buy and start their taxi business, thus two sources of income that is his employment and his one taxi operation at home.

source: http://www.easternmotors.info

The week before I was claiming my money that was in a closed bank in Pangasinan. Unfortunately, I was not able to get it on time and the bank directed me to go to the main PDIC and request a re-issue. While waiting for the certification the bank manager ask me if I knew of the OWWA loan. She said that I could loan a certain amount and have my wife start a business here in the Philippines. I am still in the process of planning my marriage with my beloved who works here in the Philippines. And with that we have decided to save up for our dream businesses and we will be able to get married soon and I will be able to go back here in the Philippines and either start business, get employed, or practice as a CPA.

OFW's can actually make a big difference in the Philippine economy if only they can wisely use their money. The problem of being an OFW is that a lot of family members will have expectation if one is an OFW. A good example is that when a mother or a father becomes an OFW they send money, toys, and other things to their children to compensate their absence. If the husband is the OFW the wife request money for house remodeling, money to buy her personal beauty stuff, and others. This are normal and OK but most of the time instead of saving and using money wisely family members begin to want a higher lifestyle like your daughter wanting the latest phone so that she would be in her schools elite group, your son wanting a 42" flat screen TV and the latest gaming hardware to play games every day and so many more.

But what if just l like the taxi driver I met would save up and established a business? Probably a small sari-sari store, a small rice retailing shop, a unit of taxi, a small food kiosk in the corner of the barangay where tricycle line up, or even yet an investment in the stock market, UITF, or real estate. As Bob Procter's teaching money should not be kept under one's bed... it should be circulated in a way that gives a return. Yes at first of course it’s hard to see your hard earned money be put into an investment and you can’t even enjoy it but the time you get returns from such investment it will be a very sweet reward or even you would rather re-invest such returns to grow your money and eventually go back home permanently and spend more time with your family.

So how can an OFW like me and the taxi driver start so that we won’t be working away from our love ones?

The answer to this question is to ALLOCATE, SAVE, and INVEST.

It is a fact that we need to eat to live. So an OFW should first establish an allocation for his or her salary. At first, this would be very hard but as you get use to it, you can manage to live with it and be able to go to the next step. As always, one has to list down what he or she is spending on right now. List all the things you are currently paying off like loans, debt, mortgage etc. Then also list down you daily living expenses like food, housing/rent in your overseas work, and the money you send back to the Philippines for your love one's daily living expenses as well. From there you should categories whether such expenses or cash outlay is a need or a want (yup the classic categorization). Try to scrap the wants little by little. This way you won’t be traumatized from the sudden absence of such need.

Whatever is left you can now allocate your earnings to it. At first, you will end up short but as time goes, you will be able to discern what are really are important and from there you can start contribute to your savings.

Make it a point that from now on you will contribute to your savings fund. This is the very first priority. This savings fund is different from the savings fund (click here)I put money in since that one is an allocation for something I want but would rather save up first before buying it. The savings fund here I am talking about is a catch basin for whatever is left after you have allocated some funds for your needs.  I know some of our local banks have branches all over the world and you can deposit your money in there. Your goal is to increase your savings fund so that you can eventually invest it.

After saving a considerable amount, you can now start looking into possible investment vehicle where you can grow this savings fund while you are working. Always ask; that is the key to success. Ask those who have actually gone from nothing to richness. These people have found the answer to how to make money work for them instead of them working for money. From time to time, engage these people to a simple chat and learn from their experience. Also, you can always search the Internet how to start business or how to open some accounts for investments back in the Philippines. A reminder as well that you should do your due diligence to protect your savings from fraud or frauds.

I guess with these knowledge an OFW like me will soon  be able to go back home and spend more time with love ones and make money work for them. Lets dream and lets achieve our dreams.

Ways to be debt free: How come your still not financially free?

Tweet

 source: http://www.thebigdreamer.com

It has been awhile since I updated this series. An incident lately prompted me to write. 

Though people have finally paid off their debts and started saving up still it seems that they are still stuck in the same situation from where they were before: living from paycheck to paycheck, always only able to save up very small amount for their retirement fund and emergency fund, and as if no matter what they do they can't keep up with the rising prices.

Well I have this friend who is now living through a government agency because of a financial windfall that came to his family. Little by little he is picking up himself. But one day he ask me if I can loan him money. So I was startled. Then he told me that he has a friend who is selling a vehicle at a bargain price and he thinks it is a good price and it would greatly help him since he will be able to go to work better with a vehicle rather than using public transport. I said I don't loan at all. And told him how about your goals of becoming financially free if you loan gain how will you pay for it since your current pay for now only covers your rent and your daily meal. 

And then he realizes my point. He was awaken and he thank me that I guided him.(This is just a fictional story)

Most of the time people forget what have they been working on: that is to get themselves out from the rat race.

In my story if he buys the bargain vehicle yes he will have a comfortable  ride going to work but in the process he added another debt which his current finances can't afford and there is a high likelihood that due to his comfortable and reliable ride he might start oversleeping and be late at work because at the back of his mind he has vehicle to use no more catching up the bus.

Most people who after paying all their debts go again into debt because they can't let go of their old lifestyle: The lifestyle of having what my rich neighbor has even though I cant afford it.

If you noticed there are only few Overseas Filipino Workers or OFW that has truly succeeded after doing their stint in abroad. The problem is when they are abroad they send money to their families and their spouses buy a flatscreen, get cable, remodel the house, buy luxury which they never had before and saying that "because we can afford it now lets get them". Where did all your hard work go? Where did your salary go?

 source: http://negosyongmaypuso.blogspot.com/

All went to consumer goods. Consumer goods are things you buy to be consumed and never generate back additional income.

source: http://dbseconomics.blogspot.com

Some OFW are wise. They send money to their spouse and tell them either to save in a bank with a good interest return, put it in UITF, or even better buy a Van, a Rental property, or do Five-Six, to earn extra money. The van is use either as a school service for students of the rich schools or even a delivery van for small operations for province to Manila and back routes. Rental property like apartments gives back rental income. And the well known 5-6 gives back income as an interest.

Most fail to achieve financial freedom after finally paying their last debt because they get back to their old lifestyle. One has to be focused on the goal. Wouldn't you like to retire young and without thinking of your expenses?

Action my friend, you make the call. You need to change our lifestyle. You need not follow the standards of your neighbor; make your own definition of success.

Want to follow Investing in Philippines by Email?Click here