Towards Financial Freedom: OFW Tips to Save Money

Contrary to what others are thinking, the life of overseas Filipino workers (OFWs) is not an easy one. One common misconception is that overseas workers earn more and can send back larger OFW remittances—their hard-earned money.

Filipino families, in their hopes of securing a better life for their families make great sacrifices while living abroad. However, we often overlook the fact that OFWs have their own financial needs.

These modern-day heroes put up with the hardships of being separated from family in order to work hard in a foreign country, even to the point of forgetting to provide for their own needs.

Finding a balance between supporting their families back home and saving for a better future can be difficult for most OFWs. But at the same time, all of the hard work and money should not go to waste. That is why OFWs need long-term financial goals.

The reality is no one wants to spend the rest of their lives working. And no one wants to spend the rest of their lives working away from their loved ones, so here are some financial management and money-saving tips for those who are working abroad.


The first step is to communicate with your family members. Informing your family about your financial goals and investment objectives will help manage their expectations and encourage them to use your earnings wisely. Have a serious conversation with them and help them see the big picture.

You need to save for emergencies as well as long-term goals such as building a new home, paying for your children’s education, investing in mutual funds, or buffing up your savings account. Your overseas journey can be more meaningful if you have the support and understanding of your family.

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Think about the bigger picture and establish a financial goal. Where do you want to best in 10 or 20 years? This is your first step towards financial security. You might consider yourself to be someone who runs his or her own business. How is this possible? By taking small steps, you can achieve your short-term goals, such as determining how many years you would like to work abroad. 

If you have a firm estimate, you should also write down how much money you expect to earn each month and where you intend to spend it. Always make an effort to meet your monthly goals, no matter how difficult it may be. Doing so will eventually lead to you practicing this method, which will also lead to you achieving your long-term goals, such as purchasing your own house and lot and starting your own business.

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BUDGET YOUR INCOME                                    

Everyone has their own method of saving money. You do not immediately need to contact a financial advisor. Take the time to understand where your money goes and devise a system for efficiently managing and organizing your income. 

The 50/30/20 is one of the best and most recommended methods, which states that 50 percent of your income should be spent on your family’s daily expenses and 30 percent on leisure-related matters. And 20 percent on savings.

Make a list of all your expenses and determine what a modest yet comfortable spending level would be for you. You should not completely deprive yourself of basic comforts, but you should reduce unnecessary spending. Practice self-control and make wise decisions.

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Vices come in various shapes and sizes, and they are often bad for both your body and your wallet. Unfortunately, many OFWs turn to vices to cope with loneliness, whether it’s smoking, drinking, gambling, or overspending.

The good news is that there are other options for recreation, such as working out, playing sports, or meeting with other Filipinos. When you spend time nurturing your body and social life, you avoid the large expenses that come with illness.

It is not wrong to reward yourself for your commitment and hard work, but make sure you do not go above that limit and stick to your budget.

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Saving is also beneficial in non-emergency situations. Assume you want afford a large expense in the future, such as a wedding, vacation, home renovation, or sending your child to college.

These large-ticket items could be financed with debt, whether through high-interest credit cards, loans, or a home equity line of credit. Borrowing, on the other hand, usually means that you’ll end up having to pay more than you borrowed because of interest.

If you save up for your dream ahead of time, you can avoid debt and save a significant amount of money in the long run.

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To keep things organized, you should have one bank account for your expenses and another for your emergency fund and investments. This can help you keep track of your money and avoid financial mishaps.

Keep in mind that an OFW highlights a shorter career span than those that work at home, and not all OFWs get retirement benefits from their employer. Begin now and manage your finances wisely to ensure a more secure retirement.


Look for an investment vehicle for the extra money you have. Investing your money will provide you with more opportunities to grow what you already have.

However, investing always involves risk, so do not put all your eggs in one basket and assess your risk tolerance for your investment options. To be safe, have an emergency savings fund that can last for months before you start investing.

You will not lose everything if you do this. Also, make wise investment decisions. Always conduct research before investing in anything.

Invest in businesses, health and life insurance, the stock market, or real estate to ensure a consistent cash flow even after you return home.

Real estate is the first thing you should prioritize to invest. Overseas Filipino Workers who have been working abroad deserve to have a place to call their own. It could be a gift for your parents, a place to raise your own family, or a place to retire.

You not only own the property, but you can also pass it down to your children. In general, real estate is a good investment option. If its value rises over time, it can provide ongoing passive income and be an excellent long-term investment.

Many people avoid investment opportunities in real estate because they believe they are risky or require a large investment. Neither of these statements is correct, and to reassure you, check out what you need to know about real estate benefits and why it is a good investment.

Looking for a property for sale that are worth your savings? Check out Camella’s projects nationwide across the country. You may also take a virtual look at our house and lot for sale in the Philippines and choose the home and investment that is best for you and your family.

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