3 Things Needed to be Financially Independent

Yesterday, I had a chance to meet 19 prospective Filipino overseas workers. I presented the session on "Financial Management", part of their Pre-Departure Orientation Seminar (PDOS). PDOS is a requirement every OFW have to go through to prepare them for their life overseas.


Three things were suggested in order to be financially independent.
1. Plan. We need to plan. Plan that is not just stored in our minds but a written plan, which covers education, house and investment or business. A written plan is better than one that is imagined. A written plan stimulates your thinking resulting in a better and doable goals. You can also refer to it every now and then and make adjustments when needed.


2. Save. Save at least 20% of your income. Treat this savings as an expense, which means you deduct it first. The formula goes this way: Income - Savings = Expense. The common formula, Income - Expense = Savings, doesn't work.


3. Invest. Invest your savings in order for your money to make more money. Savings must be converted to assets to increase income. Unfortunately, many OFW still need help in this area. There is a need to be financially literate.


The road to success is set for these batch of OFW going to Japan. They are excited with the prospect of making more money but more importantly, in the idea that they must be financially literate to efficiently manage their resources. Like them, we must make a decision to be financially literate in order to be financially independent.


To your debt-free life,
Jimmy

Deal with debt by increasing source of income

In my last article, I mentioned that the number one cause of many Filipinos leaving for employment overseas is that there is no money because there is no work available locally that will sustain them comfortably.

The salary from the work they have isn't enough to sustain a growing family.

http://archive.wn.com/2009/02/02/everyman/index.html
One solution to address their growing debt problem due to insufficient income, is to find additional source of income.

The question is, what source of income will help?

In 2000, my wife and I ventured in a business in order to add to our income. We franchised a street food business, called KISS KING OF BALLS. This is a simple business that sells street food like Kikiam, squid, crab and chicken balls, and a local drink called Gulaman.

It gave us additional income of around P1,000 a day. This income sustained many school related expenses of my three children including their daily allowances. It was exciting. I remember, counting the sales every night and tallying the sales report of the service crew. We were able to save and in some instance, able to help people in their financial needs.

Today, there are many franchisers that are willing to help. Franchise is good because their system is already tested and all you do is find a good place and start selling.

Many OFW (Overseas Filipino Workers) have enough funds from their savings to start one for their family.

http://www.zazzle.com/i_love_my_filipino_family_tshirt-235007616785562518
We can teach their families not to depend on the salary of their loved ones abroad but to help by being responsible and start out by going into a business venture that is tested and easy to do.


To your debt-free life,

Jimmy

Why Many Leave for Employment Overseas

Let me tell you what I've learned during my 3-day Pre-Departure Orientation Trainer's Training conducted by the Overseas Workers Welfare Administration (OWWA).

This is my group, WINNER. That's me on the left. 

The number one reason why Filipinos leave for employment overseas: 
They have no work, they have no money.

Walang Pera (No Money), Walang Trabaho (No Work)

The number two reason why Filipinos leave for employment overseas:

For the welfare of the family which includes the education of their children.

It is a sad story. If only they can land a good job here, they will not leave anymore. Did you know that if you are earning about P15,000 a month, it is not enough to sustain the expenses of a family of five? Did you know that the National Statistics considers you "poor" if you fall into this category? In most cases, they end up wallowing in debt to make both ends meet. 


No wonder it is the number one reason that they do all they can to leave the country and work overseas.

Chance for migration. They want to go to the land of milk and honey.

That's also the reason why we need to teach them how to save money when they work overseas. 


I hope we can do more to help them get out of debt and live comfortably.


Jimmy


P.S. Many have suggested that we teach them how to start a small business. But based on my experience, to many of these overseas workers, that is the last thing on their minds. If you have any suggestion(s), I would love to hear it so we can impart it to them. They need all the help we can give.