Not all people understand how difficult it is working in a foreign land and away from the family. Yes, the salary may be more than enough to provide a decent living for the family, but why many OFW families are still in a financial crunch especially when an OFW comes home.

The truth is being an OFW can take a toll on both your financial standing and personal relationships with your family. In fact, there are instances in which once an OFW ceases working abroad, his or her family ended up with just a little amount of savings. Why is that happening?

Read also: How OFW can get out of Debt and Save Money

Here are some reasons why OFW’s and their families are facing difficulty in saving money:

Overspending

This is one of the major reason why OFW’s are not able to save money. Their families tend to overspend the allowance sent to them every month without consider the budget. In the same manner, OFW’s also overspend money just to compensate the time they’re away from their families by buying things they don’t really need.

Cost of living

OFWs may not save money because of the higher cost of living overseas. If an OFW is not thrifty in spending money, there’s great possibility that saving money for the future may be difficult.

Failure to identify an asset versus liability

Apparently, as OFW’s earn higher income they are easily swayed to buy things without identifying whether it is an asset or a liability. Most of the time they tend to buy things that would only take money from their pockets without anything to gain in the future.

Get-rich-quick attitude

Many OFW’s are practicing the get-rich-quick attitude that’s why they were tempted to invest in the wrong investment instruments. Thus, they end up losing money rather than saving it for the future.

Lack of financial goals

Working overseas takes a lot of courage as you will sacrifice to be away from your family. That’s why it’s important to set financial goals. Setting realistic goals will keep you in the right direction and make the most of your time.

Read also: List of Top OFW Business Ideas

Saving is indeed challenging especially if a person isn’t savings-oriented. Practicing the right financial behavior is the key to save the hard-earned money for the future once an OFW retires.

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Shelter is among the basic needs of human and to satisfy that need is to own a house. This comes in real estate, an investment instrument in which you can put your money into property lots, townhouses, and condominium units.

The main target of real estate agents are OFWs or their families because they believe that these people have the financial capability to spend their money for an investment. But, is it ideal for OFWs to invest in a condo unit?

If you’re one of those people who are thinking to invest in a condo unit, you need to identify first your purpose and plan why you need to invest in this type of real estate. Likewise, you should understand that an investment is anything that makes you money.

Condo Investment can make you money if:

• You’re planning to rent it out or to sell it in the future
• You have plan to use it as an asset to improve your portfolio income

The good thing about investing in condos is that it is affordable, high price appreciation, and would allow you to earn income through rental.

Read also: Why Gold Investment is Important for OFW’s

Would you believe that investing in real estate such as condo units can be a great vehicle to accumulate more wealth? In fact, most prominent billionaires in the Philippines have a huge stake in the real estate. You may be hesitant to invest in condo, but this investment instrument is a tried and proven means of obtaining wealth.

Advantage of investing in condo units

This type of investment may seem too expensive for a new investor, but for OFWs this is very affordable not to mention the potential to acquire assured profit.

If you want to test the water, you can start investing to a studio type condo. Studio units have lower down payment and monthly amortization, but you can expect for good return on investment. The monthly amortization may range from Php12,000 to Php15,000.

Read also: Buying Pre-Selling Homes is a Good Investment for OFWs

Another advantage of this type of investment is that you can gain monthly income if you rent it out. The demand for condo for rents is increasing especially in the business districts. Most likely you can find tenants like businessmen, young professionals, and expats who are typically single.

Choosing the prime location is the key to make money when investing in a condo unit. The place should be accessible to work places, malls, shops, schools, government offices, and so on. Higher price appreciation is possible if the condo is in prime locations.

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Gold is a good investment to consider because you can use it during financial urgency. It’s because the monetary value of this precious metal doesn’t easily depreciate. You can sell or pawned it to use the money if you need to.

Unlike other investment, gold is not affected by the economic inflation or deflation. If you’re an OFW or anyone in the family is working overseas, try to check this post and learn how to invest in gold.

Read also: Smart Investments for OFW

Tips in Gold Investment

1. Purchase gold bullions

If you prefer long-term investment, the best option is to buy gold bullions. This gives you the advantage of owning the gold directly. You can buy from private sellers, from government mints, precious metals specialists, and coin dealers.

2. Gold mining stocks

Investing in gold mining stocks can make you money because they’re active businesses. However, before you engage in gold mining stocks you need to learn first the basic of stock investing. You can learn from online courses or free lectures.

3. Purchase shares from gold streaming companies

Gold streaming companies are the financiers of gold mining companies. The good thing about investing in gold streaming companies is that you can have better prices of gold and at the same time earn income from the gold production share. Some of the gold streaming companies to consider include Franco Nevada and Royal Gold. All you have to do is to identify which one will work best for you.

Read also: How to Buy, Sell and Trade Gold in the Philippines

Prior of investing in gold, you must assess your options beforehand. Identify your purpose why you want to invest in this precious metal. Whatever purpose you may have, you should think about the primary considerations such as the costs (recurring annual fees and upfront fees), counter party risks, and proximity of assets.

Gold related investments are solid choices because of its stability even during economic uncertainty and global geopolitical instability. But, investors must pay attention on their portfolios holistically. By investing in gold correctly you can diversify your investment portfolio.

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However, there are times when saving becomes difficult because of the expenses back home. So in order to make sure they earn something more for the future, many would consider investing.

If you are an OFW or if you have a family member or a relative who is also working abroad, here are some smart ideas that you can consider as an excellent investments.

1. Buy and Sell. Buying and selling is one of the best ideas for the OFWs who would like to multiply their earnings. A lot of merchandise can be purchased abroad and they can be sold here in the Philippines including clothes, shoes, gadgets, and a whole lot more.

They can do the purchasing while their family will be the ones to sell them here. They can also post some items online and purchase specific orders from their customers. This is very easy because you only need to be resourceful, and need to know the store where you can find the most reasonable prices.

2. Stock market. Stock market is another excellent investment because you don’t need to do anything else except to wait for your money to grow. You also do not need a huge amount of money in order to make the investment, but if you want to make sure that this investment pays off, you need to do a careful and a thorough research on which company you will be buying your stocks from. You can check for more information online so as to keep you guided.

3. Real estate. Investing on real estate may require a higher amount of money but it will definitely be worth it. This is excellent if all you want to prepare for is your future and the future of your family. If you are planning to purchase a house, there is no better time to do it than now, because in the long run, it will be more expensive to invest in properties.

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