Every OFW has it's own financial story after making their 1st year anniversary. Some do well paying their debts, save some money, sending all their income to their love ones and remaining some who spend all their earnings to unworthy things.
As they said, experience is best teacher in life. Truth to that , after a year I realized most of my money goes down to the drain. Early gratification and that "I now earn higher income" mentality takes toll on me. I had to do something or else my reason for being away to my family is nothing. I had decided to re assess my finances and see what went wrong.
These three below took all my money on my first year and hope you should avoid it too.
Buying gadgets.
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| photo from mytechportal.com |
This is very common reason why Filipinos, leave home. To buy that awesome gadget to make them "cool" or "nakikiuso" and no profound justification why they should invest that stuff. Admittedly I'm one of those who masked want with need . I bought my DSLR, more than 50K pesos of value, now it's market value is less than 20K. I could have buy a cheaper one and not jump into the bandwagon of Pro photographer wannabes.
It's about want or need. If you find that gadget as a need, then buy it. If just a want just skip it, later on you'll forget it.
Splurging on Shopping
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| photo from blog.tourism.gov.my |
If you know how to control your wallet when going to the Mall, good. If you are an impulsive buyer, good luck. The buy two take one, 50% off, Get 100 voucher are just effective marketing scheme that is proven to capture big spender attention. Most of the time, you buy something not into the budget because of irresistible promotion that you thought of "once in a blue moon kind of thing". I am so guilty of this, buying a shirt which I don't actually need just because I got huge discount. Another thing are in the grocery, which I end up buying Two packs of Oatmeal because I can get free tumbler, or Extra two Dynamo detergents because it's half the price.
Make a list of what do you need when go for shopping/ grocery, bring enough cash to pay for it and stick to your budget. If you got tempted Ask yourself do I need it?
Dining/ Drinking profusely
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| photo from boundfortwo.com |
Filipino loves food and it's no surprise many of us surrender to eat out at expensive Japanese restaurant, indulge in a five star buffet or consuming a gourmet coffee on a daily basis. One instance, I was craving for dimsum and end up dining at a fancy Chinese restaurant which cost my one week food allowance. Self gratification is good, but should be the confines of your own budget.
Food is basically a human need and everyone should not deprive of himself/herself. Insert a food budget for dining out on a monthly basis, and don't exceed.
I am sure you also commit some first year blunder as an OFW? Share your thoughts by commenting below.
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Labels: Finances, OFW, OFW life
