Very early this morning, I was sitting across an Aklan-born, but Californian ex- accountant retiree who spends two hours everyday trading stocks online as his personal hobby.
It was so refreshing to hear him speak with a faint lilting Visayan accent that is so adorable, an accent countless of corporate meetings working in the US thankfully failed to erase.
As he was trying to combat his jet lag, he turned to me and asked, “What about you? Don’t you want to work in the States?”
I had been asked this question too many times. “No, I like it here.” (…and my blog, and the company I work for, and going to the market every week, and being with my kids, and having time to play Monopoly with the kids etc. etc.)
We talked about the “OFW phenomenon” and how the government is benefiting from the collective sweat of more or less eight million Filipinos toiling abroad. I used to be depressed whenever I think about the social costs of parents leaving their children to earn dollars but there is some good news you all should know about.
Our top business story today quotes no less than the International Monetary Fund, who has noticed that more Filipinos working abroad are now more savings and investment-savvy. Read the story here:
“Given that some 80 percent of families that receive income from abroad as their main source are now middle- and high-income families, it is much more likely now than in 1991 that the uses for this income go beyond consumption and subsistence, and are put toward saving and investment,” the report said, quoting the IMF.
Simply put, more and more remittances are no longer being used to buy the latest unit of mobile phones and home appliances, but into savings and investment vehicles – hopefully some are even placed into businesses that are profitable.
You won’t see this in investment figures just yet, but the IMF believes the economic indicators will prove this soon. Hey, I say this is reason to celebrate! Let’s all do a virtual happy dance.
Of course, there’s still a lot of things to be done for this to be established as a trend but hey, small triumphs like these need to be acknowledged. This is a long way from the sad stories I heard all the time from bankers working with overseas workers who find that when they came home, they not only realized they didn’t have savings but also that they didn’t even have a spouse.
We are sending more highly skilled workers abroad now who are naturally more interested in long-term saving and who are more prone to love fiddling with sophisticated investment instruments. That’s another reason for this trend.
So here’s a toast to you, to the work that you do, to your search for financial independence, to your dedication to your family, and to your willingness to learn and take risks.
Here’s to more sharing — of your struggles and hopes, of your dreams and challenges. Feel free to share that defining moment when you knew you would let nothing stand between you and a retirement spent sipping pinacolada on whatever beach in the world that catches your fancy.
Personal finance may be full of talks about banking, insurance, mutual funds, stocks, taxes, cold money and credit. But the truth is, what we have begins with what we think, and how we stamp out the fears that keep us from reaching for financial freedom. If it’s possible to spark this defining moment in others, then perhaps it’s time to share your story :-).
April 26th, 2007 at 2:17 pm
i would like to ask for help from Zamboanguenos overseas Filipinos with our office’s plan in coming up with a framework on tapping funds for development initially of Zamboanga City. But we dont have info on our overseas Filipinos (whereabouts, their associations). we know we have Filipinos who are willing to invest in our city only there is no clear mechanism.Pls. help
April 11th, 2007 at 4:09 pm
Hi Mayfox, don’t be frustrated. If you read the entry “Which comes first: pay debt or save money,” Hazell shared her experience on how she was able to pay all her debts.
With determination, wise spending and good budgeting, I know you can make it.
April 10th, 2007 at 11:21 pm
soliloquy.
i am on my 7th month in Lagos, Nigeria. Work is good and pay is better. But with debts back home eating most of my salary, i can only think of going into another country with highher pay to speed-up my debt payments.
I miss my family, but i just have to put that ‘homesick’ mindset in the backburner. Just got me to thinking, working overseas for greener pasture and to pay debts that came with it, how long will it last before i can safely go back home with enough money to spare for business.
but, yes, business is not for everyone. i tried once, and failed disastrously. My wife is not into it also.
So i guess, i just have to make that 10% savings and try fund investment — or one more foray into business.
April 10th, 2007 at 2:05 am
jce,
do you think successful people start from success immediately? no they didn’t. they start from failures and trying and trying. but they make sure they learn from those mistakes and never do it again. what you should do is not just start again, but research and plan your strategy well…..
jce, planning is the key!
April 9th, 2007 at 8:38 am
jce..
Learn from your past failures to move in to a good future. I suggest you try again, it is worth the risk.
April 4th, 2007 at 8:31 am
My husband is an OFW, I could say he earns that well.He’s been doing this since we were married. When I gave birth to our first child, he suggested that we should start a business that could support is even if he doenst work abroad. He terribly misses our daughter when he is away. So I started using our savings for a business, it was a struggle at first then it started to pick up on its next year. But this time its status is a little bit shaky. So my husband decided to go back working abroad again. Mu hubby is suggesting to think of another business, but I don’t wat to take the risk again
April 2nd, 2007 at 8:57 am
Im a nurse based in the US….I agree the the social cost to OFW families are great. But the sad REALITY is for as long as opportunities back home remain few, for as long as the goverment remain inept…the Filipino diaspora will continue, as sure as the sun rises in the east. I respectfully disagree with Alrey…entreprenuership is not for everyone. Anyone who thinks of starting a business should thoroughly do their homework and research…..just look at the high failure rate of start up entrepreneurs. And not everyone has 30 million pesos to apply for a jollibee franchise.
March 31st, 2007 at 12:57 pm
The narratives of Messrs Yalung & Gonzales are faithful representations of the plights of our beloved OFW’s. Principal reason for working abroad is for higher income opportunities that are relatively scarce here. Given this, I’ve always advocated entrepreneurship to young people specially those contemplating on working overseas. One can earn as much or even more doing business here compared to being a OFW. One simply has to vigorously look out and investigate as much as one does in looking for a foreign job. The great plus is a being faithful parent to the future of our nation - our children…and to the spouse.
March 31st, 2007 at 7:20 am
dear mr. yalung, the story of your life will be retold a countless time for as long as “financial independence” remained an elusive goal for most of us, i was once like you-an OFW, i was already making a decent dollar income when i was jolted to reality when i came home once with an armful of toys for my little boy-and my boy would not even come near me because he doesn’t recognized me..at that point and time, i know a decision have to be made..
good luck on your quest for financial independence
thanks
March 30th, 2007 at 2:08 pm
Salve,
This is good news, hopefully more and more filipino will realize that is not only for consumptions, Money must be used as vehicles to free us from working as you have said, financial freedom..
Being an OFW is very hard, lots of sarcfices, i’m happy that now lots of filipino realized the hardship that they encountered, thinking that all their sacrifices will be be nothing.
I think the government must provide a program to teach OFW how to manage / handle finances, so they can put money to work for them.
God bless….
March 30th, 2007 at 10:50 am
I finish my college education because my father sacrifice working in saudi for ten years.. iam a product of an OFW family. Now, I myself is also an OFW.. I remember that first five years of my father in saudi, all money sent spend on basic needs, including schooling. My mother did not even try opening a sari-sari store. Maybe our education is also a good investment she thinks. But now having seen what happen to us, i am saving to start my own business when i come home. I dont prefer working 10 years away from my family as my father did. I almost did not know him close and personal. He is already dead now, did not much of his time with us,,,call it the social cost.
March 30th, 2007 at 8:49 am
Not in Hong Kong where I’m based where the standard salary of majority of OFWs working as domestic workers is $400/month (one of the highest in the market). That’s only 20,000 pesos. If they are the sole breadwinners and are sending children to school, they are heavily in debts. Lending businesses charging usurious loan interests thrive here.
Before moving to Hong Kong, we were living in the UK where, based on reliable sources in PNB, our Filipino nurses are incurring an average credit card debts of 10,000 pound sterling.
March 30th, 2007 at 5:56 am
hi salve, your observations that OFWs are becoming more investment savvy is true, in terms of new accounts opened in the last twelve months, at least 25% of new mutual fund investors are either the OFW themselves or their dependents. cheers!
March 30th, 2007 at 3:48 am
I’m a Filipina working for a wireless company in the United States. Having lived in New York for about a year, I’ve seriously been thinking about investing because the yield on savings account here is so small.
I read that the Philippine Stock Exchange’s value went up by 50% versus prior year driven mostly by the Philippine government’s sale of its indirect holdings in PLDT. I also read that the government intends to sell its shares in Meralco and San Miguel, events which usually drive up the value of the entire stock market.
I do not want to do stock picking by buying Meralco and San Miguel shares. I just want to buy into a Philippine Stock Exchange Index fund. I am not aware if such a product exists. And how to go about buying into such a fund from the United States. I checked the portfolio choices available from my 401K plan and they do not have Phisix index available.
Can you help me?