Every now and then, you’ll hear success tales about overseas Filipino workers (OFWs) who have “made it” in the world: a gleaming new home, a brand new car, small enterprises, and a big savings account, not to mention a plethora of gold necklaces dangling from their necks.
While some Filipinos become wealthy as a result of their years spent working abroad, others return home broke. And this isn’t an isolated incident among the ten million Filipinos working in foreign nations. Despite contributing more than $12 billion to the national coffers, OFWs appear to be destitute. What is the reason for this?
Internal circumstances, rather than external ones, are the most common reasons OFWs (or anyone for that matter) find up in poverty. Whether you believe it or not, there are a number of actions you must take before falling into poverty. Let’s look at some of them.
All remittance, no savings
OFWs are one of the key reasons why the country’s economy continues to function despite global crises. However, when it comes to saving money, the Philippines ranks last among Southeast Asian countries, with only one out of every four Pinoys having a savings account and an emergency fund. One of the main reasons they are unable to save money from their income is that they send all of their profits back into the country. It’s no surprise, however, that when faced with a financial emergency, the majority of Filipinos race to find money to keep themselves afloat. You’ll be able to ensure that you and your loved ones will have financial difficulties in the future if you don’t set aside money for investment or emergency uses.
All bling, no investments
When an OFW, or anyone for that matter, begins to earn money, there is one critical thing to watch out for: the impulsive desire to flaunt their wealth. People that are financially aware would prefer to put their money in the correct location, such as a savings account or other investment vehicles. The Philippines boasts a vibrant stock market and a variety of mutual fund products that can assist OFWs and Pinoys at home in their financial development. Unfortunately, less than 1% of Filipinos invest their hard-earned money in these assets for several reasons. Instead, they rely mainly on the SSS or GSIS pensions, which are insufficient to meet their needs. If you want to be impoverished, imitate them.
One-day millionaires get easily scammed
It’s good to reward yourself after a long hard year of work, However, some OFWs go beyond and waste their money on a variety of needless activities, such as nighttime parties, weekend trips, shopping sprees, gambling, and so on–all of which occur during the OFW’s brief stay in the nation. Due to this mentality, it’s also easy for Filipinos to get scammed by get-rich-quick schemes, These schemes deceive consumers by promising large returns with little work, enticing numerous Filipinos to invest their money with them. Some even end up abusing the system. In their return to the country, what could have gone to something more profitable or lucrative has just gone down the drain.
Balikbayan box mentality
OFW families always look forward to the day when their balikbayan box arrives at their door. These robust boxes travel thousands of kilometers solely to provide joy to OFW families: imported chocolates, canned goods, clothing, and other items purchased by foreign workers during their stay in the country. While some individuals regard balikbayan boxes as manna from heaven, they are one of the key reasons why OFWs remain impoverished. This wasteful spending and ostentatious display of wealth can only affect your budget in the long run, because balikbayan boxes simply satisfy people’s immediate demands rather than laying the groundwork for something better in the future.
Businessmen without a plan
Many OFWs consider starting a business as a way to supplement their income. However, in their excitement, they neglect to conduct a thorough study on the business they wish to follow, resulting in the loss of money and the failure of their ventures. According to US small business statistics, over half of all enterprises close permanently within five years. Start a business without a plan if you want to watch yours collapse and burn in the same way.
Poverty is a way of life, not an illness. These are only a few of the major issues that keep OFWs from getting wealthy. Lifestyles can be improved and downgraded at any time, and no matter how poor you are, you can always work your way up.
Fortunately, OFWs and their families can avoid these problems if they are financially wise. Budgeting, along with sensible financial habits, can quickly lift their families out of poverty.