Working abroad opens the door to higher income—but more money doesn't always mean more savings. Many OFWs struggle to save due to unexpected expenses, pressure to send remittances, or lack of a solid financial plan.

Whether you’re just starting your journey or looking to reset your finances, here’s a guide to help you budget wisely, save consistently, and build your financial future.

 

1. Know Your Real Income

Start by knowing how much you actually take home after taxes, insurance, and deductions. This gives you a clear idea of what you’re working with monthly.

Example:

Monthly Salary: AED 3,500
Less rent, food, transport, etc. = AED 1,500
👉 Net savings/remittance potential = AED 2,000

 

2. Create a 50/30/20 Budget Rule

This rule helps you organize your money simply:

Category	What It Covers	Sample (AED 3,500)
50% Needs	Rent, food, transport, utilities	AED 1,750
30% Wants	Leisure, subscriptions, gadgets	AED 1,050
20% Savings	Emergency fund, investment, retirement	AED 700

💡 Tip: Adjust these percentages depending on your goals. You can aim for 30% savings if you’re trying to fast-track your future plans.

 

3. Treat Savings Like a Monthly Expense

"Pay yourself first."

 As soon as you receive your salary, transfer a fixed portion to a separate savings account or remit it directly to a savings fund back home.

✔️ Automate transfers when possible
✔️ Use apps like Wise, Remitly, or GCash to move money safely
✔️ Avoid keeping all your cash in one place

 

4. Build an Emergency Fund

Unplanned events (like job loss, illness, or family needs) are common realities for OFWs. Prepare by setting aside at least 3–6 months’ worth of expenses.

Start small:

 

• Save AED 100–200 per month until you reach your target
   
• Keep it in a separate bank account or high-interest savings

 

5. Control Remittances

Sending money back home is a big part of the OFW life, but set clear boundaries and a budget.

• Agree on a fixed amount with your family
   
• Educate loved ones about budgeting and saving too
   
• Avoid “utang culture”—don’t be afraid to say no when needed

 

You can use this sample remittance plan:

Monthly: PHP 20,000 (for needs only)
Emergency: PHP 5,000 (buffer fund)
Total: PHP 25,000 max/month

 

6. Start Investing for the Long-Term

Don’t rely solely on your salary. Make your money grow.

Options for OFWs:

• Pag-IBIG MP2 (tax-free, government-backed)
   
• Mutual funds / UITFs (via BDO, BPI, etc.)
   
• Stock market (COL Financial, FirstMetroSec)
   
• Real estate (but don’t rush into it!)
   

Note: Learn before you invest. Avoid "too good to be true" schemes

 

7. Avoid Common Money Traps

Watch out for:

• Lifestyle inflation (living beyond your means)
   
• Unnecessary online shopping
   
• Lending to others without clear terms
   
• Investing in unverified apps or scams
   
• Joining “paluwagan” systems you don’t fully trust

 

8. Educate Yourself Financially

Financial literacy is your best armor.

• Follow legit Pinoy finance YouTubers or bloggers (Chinkee Tan, Fitz Villafuerte, etc.)
   
• Join OFW finance Facebook groups
   
• Read beginner-friendly money books like "The Richest Man in Babylon" or "I Wish They Taught Money in School"

 

Here are some additional resources you can read to guide you:

🔗 Prepare Financially
🔗 Saving yourself and Supporting you family
🔗 Financial Management and Budgeting Tips
🔗 4 Essential OFW Budgeting Tips
🔗 7 Tips to Save Money as an OFW

 

Being an OFW is not just about sending money—it’s about building a future you won’t need to escape from. Budget wisely, save consistently, and invest in your growth.