21 Oct 2024
Financial planning is essential for Overseas Filipino Workers (OFWs) in the United Kingdom to support the families they left behind and simultaneously think of how to have a secure future. Living expenses may sometimes prove costly in the UK, making it hard to support the Philippine remittance financially. However, this can be prevented by being wise in spending and deciding on the appropriate methods to send money to Philippines since OFWs are savvy in their work to earn more. Here are five money-saving tips that could prove helpful for Filipino OFWs in the UK to have the best return from the money they work so hard for.
Living and working abroad as an Overseas Filipino Worker (OFW) in the UK presents unique financial challenges. Effectively managing your income and minimizing expenses is crucial to ensuring a comfortable lifestyle and supporting your loved ones back home. This guide will provide valuable tips on saving money and sending money to the Philippines efficiently. Following these strategies can optimize your finances and make the most of your time in the UK.
Remitting money back home is usually one of the most significant expenditures of the OFWs. There is a need to establish the most effective method of transferring money from the UK to the Philippines. Methods employed in transferring money, such as banks, cost much money and reflect poor exchange rates. A possible way is to use the Internet and select British online sites like ACE Money Transfer, etc., which are usually more favorable regarding commissions and exchange rates.
There is reliable information that currently, the global average for the cost of money transfer reaches 6 %, but if we use web money transfer services, it is up to 2-3%. In the long run, the cost reduction associated with using such platforms is quite significant. For instance, transferring £500 monthly to home using a less costly internet-based firm can amount to 240 pounds yearly, cheaper than banking a Filipino Overseas worker.
Also, one could benefit from choosing the right transfer time. The exchange rate of different currencies changes daily; if the exchange rate is closely monitored and money is remitted when the rate is best, then more pesos are remitted. World Bank data indicates that the UK is one of the top sources of remittances to the Philippines.
By understanding the importance of timing and exploring the available options, you can send money to Philippines efficiently and maximize your recipient's payout.
According to the Office for National Statistics, the average household in the UK spends about £585 per week, with a significant portion going to housing, utilities, and transport. Although the cost of living in the UK is relatively high, OFWs can still be very careful with expenses by developing a workable budget. This makes personal budgeting an important aspect, which, if well done, will assist OFWs in cutting unnecessary expenditures and saving more for other uses, such as remitting money to the Philippines via online transfers from the UK.
First, write down all the costs that remain constant during one period, such as housing, light, fuel costs, and the like. Next, allocate a portion for savings and remittance purposes. Last, allocate a figure for variable expenses such as food and recreation. Never neglect your budget, and ensure you check it frequently so that you can make changes whenever you deem necessary.
For instance, OFWs can look into grocery discounts or purchase food items in bulk to cut their costs. Avoiding car usage or switching to public modes of transport or cycling also saves a lot of money per month. The public transport in the UK is rather extensive, and employing it enables you to save on gasoline, parking, and car maintenance.
Budgeting is not only about ensuring you have sufficient funds for necessities; it also points out specific aspects in which more money can be saved to send money to Philippines online for the family back home or an emergency fund.
OFWs should try to squeeze the possibilities given in the UK as much as they can, such as discounts, vouchers, etc. Currently, many retail and service providers give back to their clientele with special offers, coupons, and cashback, which is helpful in cutting overall spending. Some examples of Social Shopping vouchers include Groupon, Quidco, and VoucherCodes, which can help users search for groceries, clothing, electronics, and even travel vouchers.
UK consumers can save up to 20% by shopping during major sales events. To get the best deals, you can do this during sales seasons such as Black Friday, boxing holidays, and summer holidays. Besides, using membership cards in any supermarket, for instance, Tesco or Sainsbury supermarkets, provides good rebates or cashback offers in subsequent shopping trips, meaning OFWs are able to buy more with the same amount of money.
Another tip is to cross-check the prices online before ordering the products. Pre-purchase websites such as PriceSpy and Google Shopping also provide the latest offers to avoid being ripped off.
They can then invest these savings more wisely by sending more money from the UK to their families in the Philippines. The daily spending money can thus be used to fund the remittance, freeing up more money for the target back in the home country.
Another good piece of advice for the OFWs is always to factor in some emergencies if the OFWs have a rigorous budget. It can help meet medical bills, unemployment, or an urgent trip without affecting a money transfer to Philippines or putting money into debt with ease.
It is wise to save between $1000 and $2000 in an account where the funds can be readily accessed in case of an emergency. This enables OFWs to deal with emergencies without compromising the frequency of remittances from the UK to the Philippines.
OFWs can try to save at least 10% of their monthly income to establish an emergency fund. This may mean taking a portion of such expenses and letting go of them or looking for other means of raising savings by doing odd jobs or even part-time employment. For a selected group of OFWs working in the UK, weekend jobs or freelance business serves as an additional source of earnings that is one hundred percent devoted to savings or remittance.
Hence, OFWs can guarantee that they contribute financially to their families in that country, even in times of hardship, without needing to borrow.
If one tracks his or her remittance behaviors, there are often chances to save money. Some of the available online money transfer services from the UK to the Philippines include promotions, referral bonuses, and loyalty discounts for anyone using the services more than once. OFWs can also save money since they should periodically check the fees and exchange rates of the various services and choose the most suitable one.
For example, ACE Money Transfer can offer new customers free transfers or free transactions for a period of time. Other services may also include agencies whose users can gain the original number of points or use the discount for the following operations. It is also important to monitor such promotions, which often yield big savings in the long run.
It is also focused on the endeavor cost of remittances, sophisticated fees, and exchange rates in between. In essence, the more you can reduce these cost, the more online money transfer to Philippines for your loved ones can be made. Using databases like the World Bank’s Remittance Prices Worldwide, one may compare different money transfer options.
It also enables you to learn your habits as you remit to avoid making repeated and continuous mistakes. For example, you can sometimes discover that although you have allowed the money you want to transfer to be bi-weekly, using it weekly incurs more charges than expected or establishes a situation whereby a specific service provider gives higher rates at a particular month period.
It is, therefore, evident that saving money as an OFW in the UK entails proper planning and control of spending and utilizing available resources. The five critical money-saving tips, including considering the cheaper method when sending money, setting up a spending plan, taking advantage of discounts, setting up an emergency fund, and tracking money sent, can help OFWs manage their expenses and remit the maximum amount back home.
Through the above-mentioned strategies, OFWs can be assured of better remunerations, and at the same time, their families in the Philippines will be well taken care of. Whether you are considering transferring money to the Philippines for your family or trying to become financially wise and start saving more, knowledge is power and contributes greatly to a shift in the result.
Begin by enumerating all of your sources of income and outlays. Sort them into three categories: savings, non-basics (entertainment, eating out), and essentials (rent, food, utilities). Track your expenditure with budgeting tools or apps and make any modifications.
Look for unstated expenses such as electricity bills, subscription fees, and travel charges. To cut costs on commuting, consider using the bus or carpooling.
Look for seasonal produce, purchase in quantity whenever you can, and shop at bargain stores.
Take advantage of meal bargains and lunch specials, hunt for discounts and deals at restaurants, and bring your own lunch whenever possible.
Examine various remittance providers and evaluate costs and currency exchange rates. Consider employing online or mobile transfer methods for convenience and perhaps reduced prices.
