PauloAbad
The most common reasons OFWs (or anyone for that matter) end up in poverty has more to do with internal factors than external ones. Believe it or not, there are multiple steps you need to take before poverty strikes. Let’s take some of them below.
Don’t Save
The Philippines ranks quite low among Southeast Asian countries when it comes to saving money, with only one out of four global Pinoys known to have savings accounts and emergency funds. So it shouldn’t come as a surprise that in unexpected times of financial need, a majority of Filipinos scramble to find money to keep themselves afloat. By not setting aside money for investing or emergency purposes, you’ll be able to ensure that you and your loved ones will financially struggle in years to come.
Don’t Invest
The Philippines has a thriving stock market and various mutual fund programs that can help OFWs and Pinoys at home build themselves up financially. Compared to the 0.5% deposit interest rate you can get from banks, you can potentially enjoy an average inflation of up to 4% if you invest. Unfortunately, for one reason or another, less than 1% of Filipinos place their hard-earned money in these instruments. Instead, they rely heavily on the pensions they’ll get from SSS or GSIS, which is not enough to sustain their needs. Be like them if you want to become poor.
Fall for Scams
Another thing Filipinos fall for are financial scams. These schemes trick people by promising quick and hefty returns for as little effort as possible, persuading countless Pinoys to put in their money with them. Some even wind up misusing the money they got from OFW cash loans, giving them to these scammers in the hopes of getting the grandiose rewards promised them. So if you want to lose the money you worked so hard for, best find a scam that offers too-good-to-be-true gains.
Go Into Business Without a Plan
A lot of OFWs think about going into business in an effort to augment their income. But in their excitement, they fail to do intensive research on the business they want to pursue, burning their money in the process and ending up seeing their endeavors fail. According to US statistical data on small businesses, around 50% of businesses close shop permanently within five years. If you want to see yours crash and burn in similar fashion, go start a business without a plan.
The Takeaway
Poverty is not a disease, it’s a lifestyle. Lifestyles can always be upgraded and downgraded, and no matter how poor you are, you can always work your way to a better life. By following the steps listed above, you’ll be able to ensure that you become broke (and stay that way).