My Top 5 Reasons Why Saving Money Abroad Can Be So Difficult
Are you finding it difficult to save money despite your hard work abroad? Do you feel like your earnings slip just slip through your fingers every month? As an Overseas Filipino Worker (OFW), you’re not alone in these challenges. I’ve experienced them firsthand, and they’re common among OFWs worldwide. Many OFWs face similar financial struggles, often questioning why it’s so tough to save despite their sacrifices. Let’s delve into my top 5 reasons why saving money can be challenging for OFWs.
1. Low Wages
Many OFWs work in essential yet undervalued roles, such as domestic workers, construction workers, caregivers and factory workers. Despite the critical services they provide, these jobs often come with low pay, long hours, and physically demanding work. They also typically lack benefits like healthcare, job security, and advancement opportunities, making it difficult to achieve financial stability. As a result, their earnings often only cover basic living expenses, leaving little room for savings.
“In my first few years here in the Middle East, my salary wasn’t high either. I worked in Ras Al Khaimah, UAE, back in 2012 and earned only 1500 AED. At that time, the exchange rate was 10-11 pesos per dirham. I had to pay off bank loans and support education expenses, so my salary was not enough and sometimes even fell short. I endured that for four years because finding another job would have meant more expenses. That’s why not all OFWs have high salaries, contrary to what most people think.”
2. High Cost of Living
A considerable number of Overseas Filipino Workers (OFWs) face a high cost of living in their host countries compared to the Philippines. Rent in cities like Dubai, Hong Kong, and Singapore can consume a large portion of their income, while groceries and daily necessities, especially imported goods, are often more expensive. Transportation costs, whether for public transit or car ownership expenses like fuel and insurance, also contribute significantly to their expenses. These factors collectively leave OFWs with limited disposable income, making saving money challenging despite their higher earnings abroad.
“When I lived in Dubai back in 2016 to work there, I experienced living in a small room with four double-deck beds, accommodating a total of 8 people. There was one kitchen and one bathroom. I slept on the second deck, while a married couple slept below. I had to lie down early before they slept, because if I climbed up to the second deck, they would be disturbed and wake up. I paid 1000 AED monthly, including water and electricity. I also had to budget for meals and use the Dubai Metro for transportation from my room to work. Huhuhu. My salary mostly went towards personal needs.”
3. Scams and Wrong Investments
Some OFWs are lured into investment scams and fraudulent schemes, leading to the loss of their hard-earned money and savings. These deceptive opportunities promise high returns but often result in devastating financial losses.
“When it comes to investments and business, I’ve lost a significant amount. I prefer not to mention the total loss because it saddens me. However, I’ve learned from those experiences and people. I’ve tried product distribution, lending, bakery, rice distribution, livestock farming, tree farming, online selling, cryptocurrency, buy and sell, and many others. So now, I’ve started over from scratch and no longer invest with others. If I do business again, I’ll handle it myself and focus on it diligently.”
4. Limited Financial Understanding
Some OFWs may lack the necessary knowledge in managing their finances effectively. Without a grasp of budgeting and savings strategies, they may find themselves prone to impulsive spending or falling into financial traps. This limited financial understanding can hinder their ability to save money and secure their financial future while working abroad.
“I experienced a bit of comfort in life and immediately tried things I hadn’t done before. I couldn’t control my spending and didn’t save any money. I lent money to friends who were in need—some repaid me, but others didn’t. The painful part is that many years have passed, and I still haven’t saved anything.”
5. Unexpected Expenses:
Emergencies, such as medical issues or urgent family needs back home, can arise unexpectedly, putting considerable strain on an OFW’s finances. These situations rapidly deplete savings and can lead to additional expenses if loans or credit are necessary, disrupting financial stability and long-term savings goals for OFWs already managing high living expenses and remittances.
“Instead of feeling excited about finally saving some money, I faced unexpected emergencies that I couldn’t avoid. These unforeseen situations required immediate financial attention, forcing me to dip into my hard-earned savings. It was painful to see my savings diminish, but I had no choice because my family depends on me, and their well-being is my top priority. Despite the difficulty, I had to support them in their time of need.”
Despite the many challenges OFWs face in saving money, it’s important to stay positive and determined. Understanding these problems is the first step to solving them. By sharing our experiences and learning from each other, we can find better ways to save. Remember, each challenge is a chance to grow and get better. Stay strong, and with hard work, financial stability is possible.