None of us can work forever, and no matter how much you may be earning abroad the fact is sooner or later you will have to retire. You’ll have to depend on whatever you’ve saved in previous years. If you’ve spent more than you’ve saved, chances are, your golden years won’t be as golden as you wish they could be.
With this mind it’s important for OFWs like you to start making the most of your earnings while you still can. This doesn’t necessarily mean saving instead of spending everything earned, but it does mean putting away a portion of those earnings into smart investment outlets that will grow your money over time.
Investment OptionsOFWs have several options when it comes to investing, though the most common would probably be real estate. Many OFWs prefer the tangible quality of real estate, and this type of investment can be very lucrative depending upon how the property is used.
Sold after some years and it could provide a cash reserve of millions. Investing in real estate however, requires a larger amount of money upfront compared to other investment options. It also has risks in that not all properties can be sold at a gain.
And unlike other investment options, real estate cannot be sold easily at a good price should you need money urgently. If however your plans for the property are more long-term, as in preparing a future home or business site, then real estate would prove to be a good investment.
Another investment strategy that OFWs can look into is stock investment. Stock investments allow individuals to become shareholders in publicly traded companies, and done right, can produce annual returns of up to 50%.
Investing in the stock market however, entails some risk and research in order to get the best returns. Fortunately, there are plenty of financial literacy seminars now available to help OFWs and others who are interested develop a solid strategy for investing in the stock market.
For OFWs who prefer a lower level of risk, a mutual fund or Unit Investment Trust Fund (UITF) is the most ideal option. These types of funds are the simplest among investment options, as a professional fund manager handles all the work of making your money grow for you.
It also requires as little a starting investment as Php 5,000. Though it produces relatively lower returns than most other investment options, it is much easier to achieve and manage than most.
If you’re looking for immediate returns and an additional source of income for your family, you could consider franchising. There are all sorts of businesses now available for franchising, with costs ranging from Php 35,000 for small food stalls to around Php 800,000 for larger, more established franchises.
If your purchasing power is limited at the moment, you could avail of a business loan or cash loan for OFW, and immediately pay it off once you start earning from the franchise. Franchising however has several prerequisites. You have to make sure that the business to be franchised is one with an established brand and solid base of customers.
You have to be sure that you situate your franchise in a good location, and that you have partners you can trust who can manage the franchise while you are abroad. For most OFWs who opt for franchising, the franchise becomes their family’s business.
These are just some of the ways that you can maximize your earnings from working abroad and save for the future. As you’ve seen, it can take as little or as much effort and money as you wish; can cater to different financial needs and plans; and done right will always produce good returns.
About the Author:
Kash has been with Loansolutions.ph in marketing and business development roles since 2014. Now based overseas, she is happy purveyor of financial literacy for OFWs and their families.
*Photo Credit: ILO in Asia and the Pacific (Creative Commons)