Mostly, you sacrifice time with your loved ones to earn a better life abroad. But, you face the reality that you must send money to your family, put food on the table, and work yourself to the bone for a better future. With these responsibilities often comes financial pressure, which leads to, more often than not, an OFW getting buried in debt despite the effort.
But you need not fall into this trap. In this post, we’ll discuss ways you can stay out of sometimes unnecessary and unmanageable debts
7 ways to keep yourself out of Debts
Below are ways on how you can wisely manage your finances to stay out of debt and achieve your goals:
1. Know Where Your Money Goes
If you are not keeping track of your expenses, it’s so easy not to know where your money goes.
Therefore, first list your monthly income and expenses, including your home remittances, rent, food, transportation, and even the small treats you give yourself.
This will give you a clear view of what’s going out that shouldn’t be, and then you can change.
2. Avoid giving More than you can afford
As an OFW, you would always want to give the best for your family, but there will always be that fine line that separates giving and overspending.
Too many OFWs get themselves stuck having to send money for home over each and every whim.
But that doesn’t have to be you. Sometimes, you have to learn to say no. You tell your folks you can only pay for critical expenditures such as education and medical needs. Whatever the case, you toil day and night to ensure a bright future rather than financing endless cravings.
3. Emergency Fund
If you are not prepared, emergencies such as medical bills or the loss of a job, among other unexpected expenses, can spiral out of control into debt.
Therefore, you can protect yourself against unmanageable debts when such events happen by having three to six months’ living expenses in an emergency fund.
Notably, you start small. The small contributions do add up consistently over time. The safety net of an emergency fund will keep you from having to borrow money at usurious rates when the unexpected comes.
4. Avoid borrowing unnecessarily
Large purchases and emergencies get very luring to keep you on loans or credit card debts. However, when not watched, the interest piles up, drowning you in debt.
Therefore, for any loan you are considering, let this question ring in your mind, “Do I really need this?” If it’s not urgent, then save up for it.
5. Invest in your financial literacy
Invest your time now to learn all about saving, investment, and budgeting. Many classes are free online, with many forums where finances are discussed.
The resources will guide you on how and where to create and grow wealth. This knowledge helps save you from making common mistakes over money and guarantees a secure financial future.
6. Plan for your return
The biggest mistake OFWs make is failing to look ahead to their futures.
Usually, an overseas job will not last you all your life. Thus, you must prepare for the rest of your life.
Mainly investing in long-term assets such as real estate or small businesses that generate income when you reach home. To achieve this, precise planning should clear your mind to avoid struggling in the later years of life.
7. Share with Your Family
Communicate with your family about your financial plans. Let them understand your goals and limitations.
Importantly, teach them how to save and budget so they will not be so dependent on your remittances. When your family shares the responsibility, it lightens up the burden on your shoulders, and you are likely to rely less on OFW loans.
Conclusion
As an OFW, you make enough sacrifices to secure your financial well-being. Therefore, knowing how to handle your finances, set limits, and be futuristic is steering you away from financial struggles and overreliance on OFW loans. By all standards, it’s an avenue for preventing unnecessary debt burdens.
Therefore, while you focus you lighten your financial burden, you can contact us for most important OFW loans. We’ll be able to assess your financial needs, offer professional financial advice, and offer you the much-needed OFW loan for short-term financial relief and to make your life abroad manageable.