Home Tips and Guides How OFW can get out of Debt and Save Money

How OFW can get out of Debt and Save Money

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Millions of Filipinos have been making the decision to work and live abroad due to their desire to have a better and more prosperous life. True enough, people indeed have better chances of earning more in foreign countries than in the Philippines, so many would consider this option.

How-OFW-can-get-out-of-Debt-and-Save-Money

However, as soon as OFWs begin working, it feels and it seems like the amount of money they earn and send their families are not enough so many still end up broke or they go for the option of applying for loan. The sad part is many of them also find it more difficult to get out of debt and start saving instead.

Read also: Top Smart Investments for OFW

If you find yourself or if you know someone who is caught in this dilemma, here are some important pieces of advice you may want to consider.

1. Determine the total amount of debt that you have. It is important that you have the visibility over the amount of money that you owe. List them all down on a sheet of paper and devise a strategy on how you will be making your payments and determine which ones are more urgent and need to be prioritized.

2. Create a budget. Out of your monthly income, set aside the amount that will have to go for paying your debts and work within your remaining salary for your budgeting. List down your monthly expenses and see if your remaining money can afford them. Also eliminate the ones which are really not that important in the meantime.

3. Pay your debts and start saving. It will be difficult to set aside money for savings if you are not able to pay your debts first. Paying them all off will give you room for extra money which you can already keep as your savings. Make sure to never touch it, except when it is very important.

4. Avoid incurring future debts. As soon as you are done paying off all the money you owed, do not incur additional debts as much as possible. Instead, be wise in handling your money and make sure that your expenses do not exceed your earnings so that you do not have to borrow money in the future.

Better to think about it and make a good actions, than later and to be sorry.