PauloAbad
A survey made by the Bangko Sentral ng Pilipinas shows that Most OFW families rely heavily on their breadwinner abroad for their financial needs. But while land-based and sea-based jobs outside the Philippines does yield higher income, it’s still full of uncertainty. By learning proper money management, however, OFW households would not only meet their basic needs, but also ensure their financial freedom. Below is a guide to help you do that.
Have a Family Meeting
Set a date when you can sit down and discuss how to best handle the remittance you receive, as well as any other money issues you’re currently facing. The OFW member should be present, too, so make sure he or she is available on that date.
Assess the Income
Once you have everyone in attendance, it’s time to determine the family’s current financial status. Take out the payslips and calculate the total amount of income flowing to your home on a regular basis.
List the Expenses
And while you’re at it, you might as well recall your past spendings and make a list. Make sure to separate your expenses list into two groups: needs and wants. Also make sure that the list is as detailed as possible.
Focus on What’s Necessary
As soon as you finish making your expenses list, go over it and discuss each item with your family members. Determine whether or not you can get by without some of the wants, as well as decide on the quantity of needs to buy regularly.
Allot Money for Debts
Also, if you have short-term debts (from credit card bills and what-not), you need to talk about setting aside a budget to settle it. You’ll probably have to forgo some of your wants to pay your debts, but you need to understand that some sacrifices are necessary if you want to be financially free.
Start Saving
The survey mentioned above also shows that few OFWs save money. This is dangerous, especially since OFW employment is not forever. So if you haven’t set aside part of your remittances for savings and investment purposes, now’s the time to rethink your position.
Set a Fixed Budget
Lastly, have a fixed budget to meet the family’s basic needs and wants. Believe it or not, it’s pretty easy to make even if you’re doing it for the first time. Just make sure you subtract your debt payments and savings from the overall cash flow and you’re good to go.
The Takeaway
By following the guide above, OFW would not only make ends meet at home, but also ensure that the hardworking Pinoy abroad gets to enjoy the fruits of his or her labors. So better take what you learned to heart.