As an Overseas Filipino Worker (OFW), your family's future is your top priority. But juggling their needs and your personal goals can strain your financial and emotional resources. If you've been struggling, this financial guide for OFWs can serve as a starting point to achieve a healthy balance.[
Understand Your Emotional Barriers
Managing money should be a breeze with a steady paycheck, but it's seldom the case. While you may make financial decisions daily, planning your finances for the next decade takes a lot of effort. Sometimes, it's not really the hard work you're afraid of. Financial management can get complicated because of certain attitudes and notions toward money. So, the initial step to any financial guide for OFWs involves overcoming negative thoughts or perceptions that hold you back from achieving something. Here are a few examples.
"I don't have enough savings"
Small steps matter in building wealth. You restrict your options when you think you need a vast sum to save. Shifting to a positive mindset encourages you to seek opportunities, become resourceful, and plan for the future rather than just focusing on the present.
"I am the only one who can financially support my family"
While it may be accurate, this perception can make your family feel like they are only taking from you, which may not be the best experience for everyone involved. Achieving financial security is not something that can be accomplished by one person alone. Allow your family members to contribute in different ways, making them feel more involved and valued.
"I am not good with money"
You may have a valid reason to think this way, but it's time to stop the negative self-talk. In an interview, personal financial coach Ramit Sethi says to set aside your insecurities and become more open to learning. "The single most important factor to getting rich is getting started, not being the smartest person in the room," says the author in his book, I Will Teach You to be Rich.
5 Foundational Steps Towards Financial Health
Overcoming money anxieties requires self-work, financial education, and prudent planning. The five steps in this financial guide for OFWs can build a strong foundation for financial stability.
1. Set SMART goals.
Define specific, measurable, achievable, relevant, and time-bound (SMART) goals. The process involves determining your desired lifestyle and creating a budget as a roadmap. Regularly review and adjust goals as circumstances change or new opportunities arise.
2. Invest in insurance.
If your remittances serve as the household's primary income source, life insurance ensures your family's financial stability if anything happens. You can consult an AIA Life Planner to help you choose a life insurance policy that suits the family's needs. Discuss with them the benefits to prioritize, like hospitalization and disability benefits and the coverage amount and duration.
3. Put up an education fund if you're a parent
When your children have access to quality education, you're helping them get the skills they need to become self-sufficient. Automate your savings (automatic transfers from your main account to the education fund) to prevent using them for purposes other than intended. Or, solidify this commitment further with an education insurance plan.
4. Explore investment opportunities
Investing always comes with risk. However, well-managed investments can generate long-term financial growth with diversification and professional advice. Seek an AIA Life Planner who can develop a strategy with the goal of securing your financial future.
5. Practice financial discipline
High cost of living and fluctuations in foreign exchange rates can affect the value of your remittances. So it's vital to cultivate a habit of tracking expenses, saving consistently, and prioritizing needs over wants to avoid unnecessary debt.
You're putting in tremendous effort to support your family, and you want to see that hard work pay off in the best possible way. Develop a plan using this financial guide for OFWs to help reduce financial stress. That said, financial planning often starts by overcoming money insecurities. Each time you hear yourself say, "I'm bad with money," use Sethi's advice. Change your script to, "I haven't yet learned the skills of managing my money, but I'm going to."
