11 Sep 2024
Want to support family and friends in the Philippines as a UK-based Filipino? The Philippines needs help with a self-rated poverty rate of approximately 42% as of 2023, presenting significant financial hurdles for its citizens. Consequently, 1.96 million Overseas Filipino Workers (OFWs) seek job opportunities abroad to sustain themselves, especially in the UK — due to its lucrative pay and promising job market. But helping a family back home while living in the UK requires diligently saving for future emergencies, efficiently managing finances, and identifying optimal methods to send money to Philippines.
The UK, with its sizable Filipino migrant population of around 164,000, is an attractive employment destination for many. However, to survive in the UK as a Filipino expatriate, you must understand how to prioritize saving. Considering the challenges of unemployment and poverty in the Philippines, managing finances effectively is your best bet to support your loved ones back home. So, keep reading to gain insights into practical tips for saving money while living abroad and when sending money back home so that you can easily facilitate your expat life.
Living as an overseas Filipino comes with challenges, but smart planning can lead to financial stability. Savings can fuel investments and create passive income. Here are some effective tips for saving extra money while living in the UK as a Filipino expat.
Traveling around in the UK in your vehicle can strain your finances. Public transport, including metro, buses, and taxis, is much more affordable, even for OFWs. So, you can consider using public transport for daily commutes.
Moreover, train travel in Britain offers a distinct allure. They’re ideal for work commutes and even leisurely countryside journeys. Book train tickets well, even months ahead, to save money. This way, you can avoid last-minute booking fees, which can cost you double.
Spending without monitoring can lead to financial strain and the inability to make a money transfer to the Philippines. So, to gain clarity on your financial outflow, conscientiously track every expense, no matter how small. Once you diligently compile this data, you can assess your spending patterns and develop effective financial strategies.
After that, you can get overwhelmed by the recorded statistics and consider embarking on a low-spending monthly challenge. However, sudden change and a month-long goal to achieve can be tiring in the beginning. So, take smaller, manageable steps to prevent overwhelming feelings. You can begin with a short-term, weekly saving challenge before transitioning to a longer one. This way, you will promote consistent saving habits. As for infrequent needs like a wedding dress, borrowing rather than purchasing can be a cost-effective solution. Utilise family resources or borrowing apps to access items with limited use. This can also minimize unnecessary expenses.
The UK is known among Filipino expats for its high cost of living. It is also known for making professional services financially burdensome. But do you remember the discipline of saving to pay off debt? Embrace your saving habits, even post-debt repayment. Instead of repaying creditors this time, allocate that amount to your savings each month. Opt for DIY solutions for minor repairs like plumbing or changing light bulbs to accrue savings. After all, consistent saving is critical to financial security. You can also employ the following strategies to reduce the expenses:
By continuing good saving habits and cutting costs where possible, you can build a strong financial foundation for the future.
Read More: Best Financial Tips for Filipinos Living in the UK
Each evening, dedicate a visible jar for loose change. Once complete, utilize coin counters to convert pennies into pounds. You can allocate this fund to reward yourself with that gift you’ve been eyeing or invest in learning a new skill you can sell.
Developing skills is a valuable investment for the future. You can learn new skills that can help you earn extra bucks, like coding, freelancing, etc. This way, you will gain financial management expertise for efficient budgeting. Moreover, these skills can add to your income, alleviate tight financial constraints, and enhance your lifestyle.
Utility costs in the UK can vary widely due to the abundance of options. To secure optimal deals, compare and evaluate available choices before choosing your go-to shop. Seek sales and discounts for purchases like food, clothing, and tech. You can also use loyalty cards and apps to get cashback.
Moreover, many people overlook the food stored in their refrigerators. This leads to wastage and unnecessary purchases. So, before restocking, prioritize consuming items in your pantry, fridge, and freezer. This way, you can save some extra bucks and redirect the saved food budget into a savings account post-shopping.
When OFWs move to the UK, they prioritize saving every penny as this is the only way to provide robust financial aid to their dependents back home. That’s why implementing the right strategies is crucial to save while you send money to the Philippines. Here’s how to save a significant sum while making remittances across borders.
Many OFWs trust banking institutions initially due to their global reputation. However, while banks provide security, their fund transfer services are not cost-effective. They charge high fees, have rigid currency exchange rates, and may take several days to transfer. Plus, limited branch locations can add considerable commuting costs, making bank transfers an expensive option for international money transfers.
When transferring funds internationally, you must understand currency exchange rates. Companies and banks offer two types of rates: static and fixed rates and flexible and fluctuating rates. While static and fixed rates often provide less favorable deals, flexible and fluctuating rates offer real-time rates based on market fluctuations. Simply, the flexible rates enable you to initiate transfers at advantageous times.
The amount being transferred directly influences your ability to save money. Some service providers levy a fixed fee with an upper limit, regardless of the transfer amount. Conversely, others charge fees as a percentage of the transferred amount, resulting in a fluctuating fee structure. Understanding these fee models can help you choose the most cost-effective option for your transfer needs.
The timing and method of fund transfer also significantly impact the associated costs. If you require fast delivery, it may come with an additional fee. Moreover, the chosen method, such as bank transfers, payment cards, or specific remittance companies, can influence the overall cost of the transaction of your online money transfer to the Philippines.
Various money transfer companies, like ACE Money Transfer, periodically launch promotional campaigns that offer rewards and prizes to customers. These campaigns may include fee-free transfers as a reward for meeting specific conditions. These campaigns are meant to provide opportunities to save money on transfer fees.
Occasionally, certain service providers offer limited-time fee-free transfers. While these opportunities can result in significant cost savings, it's important not to delay essential transfers, as this could impact the recipients' financial stability. Although rare, this feature is exclusive to selected remittance service providers.
For Filipino expats in the UK, building a solid financial foundation requires dedication and strategic planning. After all, every saving today contributes to your future security and financial goals for you and your loved ones in the Philippines. So, overcoming financial challenges abroad by staying informed and implementing effective saving tactics. When selecting a money transfer service, it would be best if you assessed all the mentioned vital factors carefully.
ACE Money Transfer is a reliable choice, offering secure and cost-effective remittance solutions. ACE optimizes transfer efficiency with competitive exchange rates and low fees and ensures more value reaches the recipient. So, join the ACE family for safe and beneficial online money transfers to support loved ones while maximizing your budget as an expatriate. Trust ACE to safeguard your hard-earned money when you make an online money transfer to Philippines and enhance your financial management strategies while living abroad.
Practical tips include using public transport, tracking expenses, pretending to be in debt, starting a loose change jar, and shopping around for utilities to save money.
You can save money on remittances by choosing service providers with competitive exchange rates and low fees, monitoring fee-free transfer opportunities, leveraging promotional campaigns, and considering the impact of transfer amounts and fees.
ACE Money Transfer offers competitive exchange rates, low fees, and periodic promotional campaigns, making it a cost-effective and secure option for remittance needs.
Flexible and fluctuating rates offer real-time rates based on market fluctuations and allow transfers to be initiated at advantageous times for potential cost savings.
Effective financial management can be achieved through diligent saving, monitoring expenses, seeking cost-effective solutions, and leveraging secure and cost-effective remittance solutions like ACE Money Transfer for sending money back to the Philippines.
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