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
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