6 Basic Personal Financial Management for OFWs

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We, Filipinos are known as an epitome of hardworking employee. We work passionately and  competitively yet in our finances we're failing to be on top. We thought working abroad is one of the the best decision to compliment our financial needs. True enough,  but it could only serve as  temporary financial aid. Looking on long term perspective, we need to know some basic Personal Financial management to guide us on how to improve our finances. 

       
 Here are  6  Personal Financial Management for you my fellow OFW's.

1.  Be Financially Literate. Financial Literacy is not part of our academic curriculum. The reason why 1% only of our population know how to invest and grow their money. You need to take initiative to educate yourself. There's a lot of ways to learn. It's just one google away nowadays. You can read ebooks or even books about finances like  "Rich Dad Poor Dad" of Mr. Kiyosaki.  You can follow financial related blogs or join Facebook group. And lastly, attend free or paid seminar. One of the best thing to do is consult a Registered Financial Planner to properly address your current financial status. Do your Diligence. 

2. Eliminate wrong Financial Mindset. Dealing with your old financial beliefs is a struggle. Here are some misconceptions practiced in handling finances.

• The wrong formula saving which is Income less expenses = savings.
• Putting our savings to bank. 
• Investing is Risky.
• Accumulating Depreciating Items believing it's an asset.

To help you eliminate these things, you need to wake up and open yourself for change.

 You should start saving the right way, set it as your priority after you take your salary. Search and study an investment to grow your savings. Know to calculate risk. Practice delayed gratification. Identify your needs over wants. 

      3. Stop Procrastination.  Assess your current financial status. Know yourself financial burden. Eliminate your wrong financial habits. Set new Financial goals. Know the basics in personal financial management. As we welcome 2016, list your plans. Take actions, commit to your goal. And lastly, seek His guidance!

4. Leave within Your means.  Sadly, we heard OFWs having zero savings, indebted, living from pay-check-to-paycheck. I witnessed real life stories here in Saudi Arabia. The main problem deeply rooted from their lack of financial education. I have known a friend working for about 10 years at government office yet until now he wasn't able to retire.  Some of their lifestyle were, premature acquisition of luho's, third party and party-all-night. They neglect to save, the reason why they can't escape the rat race. I am hoping that through this blog, I may enlighten you.

5. Start Saving. Sounds cliche', an old school but it's the foundation to Financial Freedom. It's the basic step in building wealth. Start paying yourself. Having more enough savings, open doors to many investment opportunity. Take advantage while you still have time and energy in doing so. 

6. Begin your Investment. As we slowly build our savings, it's now time to let our money work for us. It's the key to retire soon.What investments could probably help us? There's different vehicles to ride on like mutual fund investement, UITF, money market fund for beginners. For risk takers, you can try Stocks and Forex trading. Build your business, be a real estate investor and many more ways to invest.

* You should talk first your Financial consultant before jumping into any investment.

"The only way you will ever permanently take control of your financial life is to dig and fix the root problem."

Suze Orman

 
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2 ways to Open a Mutual Fund for OFWs

      

Mutual Fund investment is one of a good avenue to park our hard-earned money. It gives us a decent return better than savings account and time-deposit interest. For newbie investor, Mutual Fund investment is the most recommended vehicle to ride on since there is a Fund Manager who manage it and lay-out on a diversified portfolio. As an investor, all you have to do is fund your account and let it grow according to your holding period.

Mutual Fund has different types. It varies and categorized according to risk profile of an investor. These are the 4 types of Mutual Funds.

1. Money Market - It is invested in short-term debt securities. Recommended for moderate risk investor and short-term horizon.

2. Bond Fund/Debt Fund - It is invested in bonds or other debt securities. Recommended for moderate risk investor but for long term horizon.

3. Balanced Fund - It is invested both in stock (50%) and bond investment (50%). Recommended for aggressive investor with long term horizon.

4. Equity Fund - It is purely invested in stocks (securities). Advisable to aggressive investor with long term horizon.

In some Mutual Fund companies, for as low as 5,000 pesos you can now open an account. It shares exprssed as NAVPS (Net Asset Value per share). Holding period varies depending on types of Mutual Fund.

There are 2 ways to open a Mutual Fund account for OFWs. One of these, enable me to invest while working overseas.

1. Traditional Way - I called it traditional since the process is the same as usual way of opening an account for ex. opening a savings account. Each Mutual Fund companies has their basic requirements to settle. One of their advantage is having a Mutual Fund agent who will assist you to process your documents and serves as your Investment Advisor. For overseas application, your Mutual Fund agent will instruct you to scan your documents for data checking. When they approve it, they will advise you to send your original documents via courier. You are required to deposit your initial investment and send a scanned copy of receipt via e-mail to completely process your application. After a minimum of  5 working days (upon they receive your application) they will send your account details. Along your investment period, you'll enjoy the privilege of having a consultant/mentor represented by your Mutual Fund agent.

2. Modern Way (Online) - As COL Financial Inc. launched it's first online Mutual Fund Platform via COL FUND Source,  opening an account in Mutual Fund made so easy. How to have an online account? First thing to do is you should have an COL Financial Stock account. To my fellow OFWs, I wrote a blog on how to open an Stock account overseas. Please follow this link 

http://pinoyfinancialcare.blogspot.com/2015/07/how-ofw-invest-in-stock-market-through.html


When you have COL account, no more additional documents needed. Your buying power in stocks will be your buying too in mutual fund. It works hand-in-hand. To invest in Mutual Fund, in your Home page you'll find  Mutual Fund tab. Just click the tab and it will redirect you to COL Fund Source platform as shown in the photos below.

Here's the COL Fund Source Mutual Fund platform.

I'm sharing too this video tutorial to help you on how to navigate the site. You can watch the video here. You will then fill-up your risk profile first to know what type of investor you are. And then they will show you list of Mutual Fund companies depending on your risk profile. If you want to place your order, just click order entry and view orders to get updated on your status.
In my personal experienced, I found online investing in the mutual fund very convenient in every transaction I made. For OFWs like me, I highly recommend it. I'm sharing you these things to let you know that it's possible for us to invest our hard-earned money in this kind of investment vehicle.
Happy Investing!

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LEARN HOW TO EARN PASSIVE INCOME ONLINE

As an OFW (Overseas Filipino Worker) here in Saudi Arabia I always dreamed of settling home soon. I'm thinking of ways on how to earn additional passive income. As I told my story before, during my spare time in work, I dedicated my time looking for more ways on how to create an additional income. Aside from Blogging and my Stock Market Investment, I'm earning through Affiliate Marketing.

I want to share you on how I started earning through affiliate marketing. December 2013 when I joined Truly Rich Club of Bo Sanchez. As one of  the vehicle that bridges me to enter the world of Financial Literacy. Honestly, I joined TRC not because of passive income but to get more Financially literate and savvy. It did help me a lot in managing my finances and pushes me to start my stock market investment.  As one of the benefit being a TRC member is you can invite friends and tell them great experiences in the Truly Rich Club. Or put a Truly Rich Club link in a Blog, Facebook account or website. For every person that joins the Truly Rich Club because of the link, members get 20% of his or her monthly subscription fee every month PLUS a 5% commission for all the subscribers this person gets. For as long as recruited members remain a member, affiliate will receive commission month after month. As a TRC member, I earned an additional passive income of 4000 pesos in my affiliate commission.

How about for non members of TRC? Are they entitled too to get the same commission. The answer is Yes. They need to sign-up first and create their account here. Banners and Marketings Ads are available too, it made easy for them to advertise. But I strongly suggest them to experience being in Truly Rich Club  specially to those who wanted to start Stock Market investment and also for a newbie Stock investor. I advice them to experience 6 months subscription to take advantage on the monthly stock update(SAM table as shown below). It serves as a beginners guide, to help them know which stock companies to pick. For sure along the way they'll learn more on how to manage their portfolio. After 6 months, they can decide if they'll continue or end-up their subscription.

For more information about Truly Rich Club, kindly visit this link bit.ly/LearnBoSanchez
Aside from the learnings and enjoying the benefits of being a TRC member, you still have a chance on earning at the same time. The decision is all yours, you need only to take an action!

 Our success in life depends on our commitment towards our goal.

6 Disciplines I Mastered in Personal Finance Management

      As I understand Financial Literacy my old financial being enlightened. I used to practiced its values though it took an ounce of an extra push. I learned to master 6 disciplines in my Finances.

I'm sharing you my personal experiences.

1. Self Control

•  Its typical for a first timer OFW to lure into luxury. Knowing you're capable of spending since higher salary equates to a higher expenses. Setting priorities saved me from  "keeping-up with the jonesses". I always reminded of my goals and aligned my lifestyle accordingly.

2. Budget Oriented

• One week before pay day, I prepared my budget list. I live within my means and allocate certain amount for my simple pleasure. And it became part of my monthly routine. Right now even if I don't have my list, it won't bother me anyway since I'm familiar with my expenses.

3. Delayed Gratification

•  Its the ability to resist the temptation for an immediate reward and wait for a later reward. As I managed to control my impulsiveness and effortlessly taking my monthly budget, I practiced the art of Delayed Gratification. Though I'm itching to purchase latest gadgets, I  preferred to procrastinate. I planned on how will I get it without compromising my budget. I'm glad to share you the reward of my delayed gratification. I bought it after 2 and a half years here in Saudi.

       ( Bought November 11, 2015)

4. Saver

• As I practiced proper allocation of my salary.   I became a mighty saver, lols! Every payday, I follow the right formula in saving. Income less Savings = Expenses. I always pay myself first. Month after month, my savings increases. 

5. Debt Oriented

• During my early years here in Saudi, there were times that I borrowed money from my colleagues. Since I took the responsibility of sending my brother to college. But that challenged me, I reminded myself to settle it as soon as I received my salary. Now, I'm humbled from a borrower I turned  myself to a lender. 

6.  Investor

• I'm still on the learning process and searching phase, but I know as I started I made the best decision in my Financial Life. Guided with the right mindset of saving, I slowly build my investment fund. Now, I'm working on my paper asset. Looking forward to venture Entrepreneurship and praying for God's providence.

"You're net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones." -Benjamin Franklin-

 
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