MY
friend Elmar used to work in an international organization
based in Thailand. For six years, he held a plum position
with a high monthly salary. He would save and send
his earnings home to buy a real estate property in
the province for his mother. He also helped pay for
the expenses of his brothers and sisters, nieces and
nephews.
After
his overseas assignment, Elmar went back to the Philippines
and worked for various non-government organizations
(NGOs), living on wage levels that were a pittance
compared to his salary abroad.
It
is the high value of foreign currencies that lures
most Overseas Filipino Workers (OFWs). Pinoys love
their families dearly and see the work abroad as the
golden ticket that would help alleviate the economic
needs of their families back home: children to send
to school, parents who need medical attention, siblings
or kin who need money for all sorts of reasons.
There
will always be bills to pay and the OFW is the bank
account that the extended Filipino family relies on.
Today, some 8 million OFWs remit more than US$12 billion
annually, enough to pay a sizable chunk of the Philippine
debt.
But
how does one save for that uncertain future, especially
when the contract abroad ends.
Many
financial institutions advocate for financial literacy.
Visa International, through its financial literacy
website mymoneyskills.com, provides valuable tips
that are useful for any wage earner. Although the
site is targeted towards students and young professionals
who are Visa cardholders, anybody can learn from this
website. Mymoneyskills.com recommends
setting goals and planning as the first step to learning
to spend money responsibly.
GOAL
SETTING AND PLANNING
Without goals, we don’t commit to realizing
our financial dream. Setting goals is the first step
in realizing one’s financial dreams, whether
it’s saving for a pension plan, a house in the
province, or a business for the family. Mymoneyskills.com
recommends:
- Assessing
your needs. You need to decide what you
want and what you need. Evaluate your current financial
situation. Take a broad look at the way things are
now. You can call this step taking stock, taking
inventory, or even taking a step back to see the
big picture. Whatever you call this step - don’t
skip it!
- Make
two lists: a WANT list and a NEED list.
- As
you are deciding what to add to your lists, ask
yourself the following questions:
•
Why do I want it? Or think I need it?
• How would things be different if I had it?
• What other things would change if I had it
(for better or worse)?
• Which things are truly important to me?
• Does this match my values?
•Set
Goals. Goals need to be SMART. That means
they are Specific, Measurable,
Attainable, Relevant
and Time bound. You can have both
long-term and short- term goals. Achieving financial
success starts with setting SMART goals. For example,
a specific goal is to save for a condominium unit
in Metro Manila. Ask for the going rates of condominium
units in the specific area where you intend to buy.
It will be measurable when you know the down payment
and monthly amortization rates for a Php 1 million
condominium unit, versus the amount of money you can
save every month to pay for it. Make sure that the
goal makes sense. Set a target date for this goal
and you are on your way to achieving it already!
•Make a Plan. How do you see
yourself 5, 10 or even 20 years from now? Having a
clear vision of where you want to be in the next 5
years helps you imagine steps that you need to take
to achieve your goals. Visualizing each step and determining
the order in which you would take it will help you
actualize your vision. No step is too small. Most
importantly, write it down. As they say, the faintest
ink is better than the strongest memory. A journal
helps you see how you are progressing in terms of
your financial goals.
•Take Action. Make the first,
second, third and succeeding steps one at a time.
Having a plan does not mean that you will easily achieve
your goal. It takes energy to move yourself forward
and then to sustain the momentum. Commit yourself
to your financial goals especially when the going
gets tough, and a lot times, they do get tough.
Put
pictures of the condominium model unit on your refrigerator
to affirm to yourself that the goal is something that
you have always dreamed of and keep moving until you
reach your dream.
Mymoneyskills.com
is but one of the many websites that provide information,
tips and techniques for spending money wisely. There
are other resources on the internet that can help
you in each of the steps described above.
Precious
Leaño is the Business Development
and Marketing Manager of EON, a pioneer communications
and stakeholder relations firm in the Philippines.
She is also a partner and consultant of Raw File Images,
a photography studio in Mandaluyong City. Email her
at pmleano@yahoo.com for your comments and views.
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