There are currently about 1.8 million OFWs in the Philippines, who send around 800 billion pesos to the country each year. Where does all this money go? The majority of it goes toward their own and their family’s living expenditures. Only 2 out of every 5 OFWs can save for their future, according to the Philippine Statistics Authority.
If you’re an OFW looking to ensure your financial future, investing your money is a good idea. This also applies if you’re an OFW who wants to either retire soon or to return home as soon as possible. The best way to do so is to learn how to save and invest.
To begin, you can use the suggestions we’ve provided specifically for you. Here are some investment tips for OFWs when you decide to put your hard-earned money in stocks, mutual funds, real estate, and even your own small business.
Understand Your Risk Capacity
The majority of land-based and sea-based OFWs are unaware of their risk appetite. Sure, some of them go all-in on investments at first. When they start bleeding money, though, they panic and withdraw as quickly as they can. Before you begin investing, you must first determine your risk tolerance. This is the same as understanding and keeping in mind that you can only invest with money you can lose. You have to have this running in your system so, you’ll be able to create the best investing strategy for your financial future this way.
Take Charge of Your Emotions
Allowing your emotions to influence your investment decisions is a bad idea. Otherwise, you risk making poor financial decisions and maybe losing your hard-earned money. You should now be aware that controlling your emotions while investing is easier said than done. However, as previously noted, knowing your risk limit can help you relax and avoid making financial blunders.
Maintain a Well-Balanced Portfolio
An OFW’s financial portfolio must be extremely adaptable in order to minimize risk. To put it another way, it must be able to adapt to changing market conditions. You have to be at least knowledgeable about how the market works and if you have more time, its ins and outs. Check to see whether you’re placing all your eggs in one basket. Instead, understand when to buy aggressively and when to invest defensively.
Diversify Your Investments
Do you know why business tycoons have all sorts of businesses which some are not even related to others? No matter how good an investor you are, you will almost certainly lose money in some sectors. You can mitigate this loss by diversifying your investments and not putting all of your eggs in one basket. Don’t put all your eggs in one basket, as previously stated.
Start NOW.
As a popular quote in the industry says, “The greatest time to begin your financial path was ten years ago, yesterday was second best, and right now is third best.” OFWs should begin investing as soon as possible. Investing helps kababayans like you generate an income stream that will keep you financially afloat even if you stop working. You’ll receive various benefits by starting early, including more time, lower risk, and a larger passive income flow, among others.
Many OFWs are hesitant to invest because they are concerned about losing their hard-earned money. That credit is bad is a very common misconception among us Filipinos. However, there is good credit. You will be able to live a prosperous life in the future if you invest. Also, remember to follow the recommendations we mentioned above to ensure you make appropriate investment decisions.
Now is the time to change your perspective. Global SME is here to assist you to build a secure and comfortable financial future. You may take one of our top OFW loan products with the most competitive loan offers to jumpstart your investment journey.