Overseas Filipino workers are the country’s modern-day heroes. They work in a foreign land in the hopes of providing a better future for their loved ones.
For them, payday Friday does not entail eating in a lavish restaurant. It usually entails going to the nearest remittance center to transmit money to their families. Earning in foreign money gives Filipinos more purchasing power and, ostensibly, more opportunities to save and invest. However, based on the Bangko Sentral ng Pilipinas’ 2nd Quarter (2019) Consumer Expectation Survey, only 33.9% of the households surveyed put OFW remittances into savings and only 7.6% put them into investments. OFWs and their families need to realize that they cannot work abroad forever. Sooner or later, they will need to retire and won’t be earning as much as they used to. So they need to make their money grow, and earning money in foreign currency is fuel to the fire. They can invest more money and in more options. Whether you want to prepare financially for your post-OFW life or build your retirement fund, here are the best investments for OFWs you may consider. 1. Real Estate Real estate is one of the preferred investments for OFWs because a home is a tangible asset compared to stocks and mutual funds. Another is the personal benefits of having your own place. Earning in foreign currency allows OFWs to invest in real estate in the first year or two of them working abroad. Compared to those working in the country, it may take years to be able to save up for a down payment on a home. Why is Real Estate a Good Investment for OFWs? Real estate has the potential to yield great returns. Also, if you end up selling your property, you will have a large cash reserve in the millions. Nowadays, the popularity of short-term rentals via online platforms such as Airbnb and Agoda Homes makes it easy for OFWs to earn money quickly by renting out their idle apartment or condo units. Before buying a house and lot in the Philippines, make sure to do a lot of research and figure out your financing plans. You should also work with a credible real estate developer to ensure that your purchase is in good hands. 2. Mutual Funds and UITFs Mutual funds and unit investment trust funds (UITFs) are pooled investments that OFWs can participate in for as low as PHP 1,000. To open a UITF account, most banks require a personal appearance, but others, such as BPI, PNB, and Security Bank, allow you to apply abroad if you already have a savings account with them (or in the case of Security Bank, an existing UITF account). For mutual funds, you can open an account with a mutual fund company (Philequity, ATRAM, or Sun Life Financial, etc.) or through a stockbroker such as COL Financial and First Metro Sec. Why are Mutual Funds and UITFs a Good Investment for OFWs? Mutual funds and UITFs do not require much effort and time compared to other investments for OFWs such as stocks and business. A professional fund manager handles your mutual funds and UITFs. All you need to do is put in the money. 3. Stocks With the advent of online trading platforms, OFWs can now participate in the Philippine Stock Exchange (PSE) even if they’re based abroad. COL Financial, an online broker, allows OFWs to open a trading account without a personal appearance. You can send your application forms and supplementary documents via courier and then fund your account via wire transfers. In addition, numerous online stock brokers allow you to open an account for a minimum of PHP 5,000. With the high earning capacity of OFWs, they can invest more than that and add to it monthly. When Covid-19 struck the world, lockdowns happened in different countries. This resulted in the countries having an economic crisis which led people to lose their jobs. People had no choice but to use their saved up money to survive and continue living despite the pandemic.
A year has passed and we have seen major changes in the economy. This helped a lot of people to have a job, regain employment, and/or establish their own businesses hence, they will be able to save money again from their earned income for their future. By means of this, this article will assist you on how you can effectively save money during these trying times. HERE ARE 5 TIPS ON HOW YOU CAN SAVE MONEY. 1. Follow the 50-30-20 rule of thumb The 50-30-20 is a basic rule to follow when receiving after-tax income. During payday, of course, the first thing in your mind is to pay all the necessary bills and buy necessities for yourself or your family. However, your wants may also come to your mind especially that you worked hard to get your income. With this, 50-30-20 should be done: 50% of your income should be allocated to your needs (essentials) - bills, groceries, payments, insurance, etc; 30% must be on your wants - gadgets, netflix, clothes, etc; and 20% must be on savings or investments. Following this 50-30-20 rule is a great way for beginners to follow a formula when starting a saving journey. This basically dictates the percentage you should allot in certain expenses which would make budgeting easier for you. 2. Avoid impulse buying Impulse buying is an action in which a customer buys immediately without a second thought. Sometimes they correlate impulse buying to treating oneself. Treating yourself is not bad at all especially when you had a long busy day. What’s wrong is when you spend all of your money on unnecessary things. Sometimes we purchase impulsively, thinking that we only live once. But, did you even stop and consider that the money you are about to spend on can help you in the future? Think about it! In these days where budol is common among people, be one of those who keep their money values intact. You’ll thank yourself in the future when you do so! 3. Preloved stuff selling Preloved selling is the process of selling good condition owned items at a lower price. Each and every one of us has stuff that is not being used anymore. We hide it inside our cabinets, and drawers; we also put it in a storage room and never use it again. If those items are still in good condition, try selling them with a reasonable price. Especially nowadays that the pandemic has caused great financial crisis, being money savvy is a must. With that, many people already embrace pre-loved clothing as they are cheap and sometimes still comes in good quality. If your clothes are in good condition and still wearable but no longer used, selling them could be a good idea. You will be able to declutter your space and even make money from getting rid of unused stuff. 4. Alternative source of income Alternative source of income is having other income apart from earned income on one’s job. When you are an employee, the best thing to do with your earned income aside from saving up, is to have a small business that will help you to have an alternative income. If you don’t have time to put up a small business, try seeking help from your family. In addition, you can also apply for a part time job; start your own vlog, blog; and/or do freelance. Doing these things will help you earn more and maximize your time. If you have a lot of free time, it’s a good way for you to start building a new hobby and make money from it. There are also ways to earn extra income without having much effort, though. But whichever suits you, you should definitely build another source of income on top of your regular paying jobs especially in these trying and uncertain times. 5. Budgeting Budgeting is an act of financial planning. This is also called a spending plan. Nowadays, it is very important to plan ahead because tomorrow is not a promise. Our situation might get worse, resulting in the loss of jobs again. Planning on your finances will help you track all your expenses. Through budgeting, you will determine how much money you will spend as well as save. Consequently, you need to balance your income and expenses to avoid having debt. WHY DO WE NEED TO SAVE? Imagine saving up today; after years of doing it, you would have a large amount of money that you can use later on for yourself-such as buying a house and lot, a new car, or visiting other countries without worrying about the expenses. Saving is all about having financial security. Securing your life is the best thing you can do for yourself. Saving is not just about being ready for the future, it is also about being responsible for yourself. Your savings is for emergency, protection, and stability. It will give you stress free and peace of mind. Once you are settled, you have the freedom to spend all of your saved up money and enjoy it. Are you feeling a little under-served when it comes to self-care? Taking care of oneself might be hampered by a variety of factors, including family duties, employment, social obligations, and more.
When things are tough, it's even more crucial to take care of ourselves psychologically and physically than normal. There are several things you may do at home to improve your mental, emotional, and physical health while you're in quarantine or isolation. Here are six recommendations for taking care of yourself, learning to navigate through difficult times at home while spending more time with family, and becoming problem solvers to overcome the obstacles that we all encounter in our lives, large and little. 1. Take 10 to be zen Our thoughts tend to speed up when we're worried about something (like the coronavirus). Practicing mindfulness for 10 minutes or so might help you feel more relaxed. Whether you're not sure what mindfulness is, find out more about it and see if it's right for you. 2 .Get away from the news for a while We're all getting a lot of coronavirus updates right now, thanks to the news and social media. It's critical to keep informed, but try to restrict your media consumption to a few times each day and stick to reputable news sources. If you find yourself going to social media because you're feeling lonely, take a break and do something else, like the activities we've listed below. 3. Cook Your Favorite Foods... Like Pasta! A nutritious diet does not have to be monotonous. Some meals that may appear to be sinful might really be beneficial to your health. It's all about how you cook them and how often you serve them. Take, for example, pasta, which is low in fat and salt and keeps you fuller for longer, making you less prone to snack or overeat. However, be careful what you put on it. You may increase the fat and salt content by covering it in a thick alfredo sauce. Instead, try whole-grain spaghetti with olive oil and a sprinkling of Parmesan. Adulting is difficult for everyone, but it's especially difficult for young adults who spend over their means. Isn't it easier to spend a lot of money than it is to be frugal?
Are you in your twenties or thirties and having financial difficulties? Even if they are aware of their future needs, Filipino millennials are not saving and investing enough, according to a recent survey. You may have previously heard this financial advice from baby boomers, but it's worth repeating: don't just save—invest! Here are some millennial investment tips to consider if you're not sure what to do with your money: 1. Small Business Why don't you turn your pastime into a profitable business? Let's imagine you're a fashionista who loves to splurge on handbags and shoes. You can utilize Facebook and Instagram to sell your unwanted items, or you can hold a garage sale. You could also start a pastry business and market it online if you enjoy baking. Because it does not take a large sum of money or a business degree, a small business is one of the most accessible investments for millennials. Even a small sum of money, such as twenty pesos, can go a long way. If you require additional funds to run your business, you have a variety of possibilities. You can receive a personal loan from a bank, for example. 2. Variable Universal Life Insurance (VUL) A VUL is a type of life insurance that also functions as an investment. When you get one, you protect the people who rely on you financially (such as your parents or children) in the event that something unfortunate occurs to you. Plus, the money you put in every month generates returns for you. VULs are a terrific investing option for millennials because of their liquidity—you can access your assets after a set period of time, which may be quite useful in times of financial hardship. 3. Mutual Funds Stock market investing can be lucrative, but it can also be confusing and complicated for first-time investors. It's one of the finest investments for millennials, so put your money in a mutual fund and study at the same time. Your money is combined with funds from other investors and invested by experienced fund managers in a variety of securities such as bonds, stock market funds, and money market funds. Because your money is managed by professionals, you can rest assured that it will grow over time. 4. Pag-Ibig or SSS Investment Program The Pag-IBIG Fund and the Social Security System both have investment/savings schemes that are among the easiest first investments (SSS). You can start investing in the Modified Pag-IBIG 2 (MP2) or the SSS Personal Equity and Savings Option (P.E.S.O.) Fund for as little as PHP 500 or PHP 1,000, respectively. Both investment plans are backed by the Philippine government, ensuring that you would have a low risk of losing your money. The MP2 and P.E.S.O. Funds are also simple to obtain if you are a registered Pag-IBIG and SSS member who meets the basic requirements. You can enroll in person at their branch or online through their individual websites. 5. Bonds Investing for millennials does not have to be difficult. As a newbie, you're probably afraid of taking big financial risks. This is why millennials prefer low-risk investing options such as bonds. Bonds produce smaller profits than other investments, such as equities, due to their low risk. However, bond investment is far superior to putting all of your money in a savings account. Bonds offer better returns than bank accounts since they pay a higher interest rate. 6. Retirement Fund For millennials, the optimal investment should provide financial security and protection. That is why putting money into a retirement fund is a wise decision. Take advantage of the fact that you are still unburdened by financial obligations to save for the future. Although retirement may appear to be a long way off for millennials, keep in mind that your earning potential may not be the same when you reach your fifties or sixties. So, if you're looking for a place to put your 20,000 pesos this year, talk to a financial expert about starting a retirement fund. 7. Real Estate Investment Real estate is often considered safer than other investments such as bonds and equities, even for novices, because shelter is a basic human necessity and properties are tangible assets. Stocks, for instance, are subject to price volatility as a result of changing market conditions, whereas real estate generally appreciates in value over time. However, as with anything, reaping the benefits of a real estate investment requires experience and understanding. In addition, it is always safe to start a real estate investment with a trusted brand just like Bria Homes, the Philippines’ fastest-growing real estate developer. 8. Investing in Yourself Aside from money, your greatest assets are your own skills and knowledge. As a result, starting your investing journey from within makes sense. To prepare for professional advancement, learn new skills or pursue higher education in your field. Growing professionally will provide you with a competitive advantage. Surviving the fierce competition in the corporate world is difficult enough as it is. Better earnings prospects will arise as your career progresses. It's one of the finest investments for millennials since you get to learn something new while also meeting individuals who can help you achieve your goals. |
Archives
November 2021
CategoriesAddressLowerGround Floor, Starmall, Corner Edsa-Shaw, Shaw Blvd, Mandaluyong, Metro Manila
|