The Best Time To Be An OFW Don’t Waste It!

Overseas Filipinos Workers (OFW) are hailed as modern day heroes. Not only because of the sacrifices they made leaving their family to work abroad. It is also due to the remittances OFW sent back home to help boost the economy of our country.

There are so many stories each one of us can tell why we want to work overseas. It’s no secret that the major driving factor is improving the well-being of our family and secure financial stability. 

Why do we want to work overseas?

Economic hardship, limited opportunities, and low income are few of the many reasons why Filipinos are taking risk to work abroad and leave their families behind.

We send all our hard-earned money to our families back home. Part of our goal is to save, invest, and venture on any business opportunities so that we no longer work abroad and stay with our families for good.

One goal we all have in common: Improve the lives of our family financially whether we live abroad or at home.

But how do we prepare ourselves financially?

Build multiple sources of income so as not to rely on your employed (active) income. The reason is very simple. If you are unable to work due to illness, injury or made redundant by your company, you still have other sources of income coming in. 

Work smarter not harder! Let your hard-earned money work harder for you.

Many OFW have set their goal on retiring at a certain age, so they started on putting a business early on. This works really well for families whose principal breadwinner is working abroad and the wife or husband is (left alone with the kids) running the business. Very popular start up businesses for OFW are sari-sari or grocery store, small carinderia or restaurant, rental properties such boarding houses or dormitory to name a few. 

These are somehow “passive income sources” for the principal breadwinner who works abroad. Many of my family and friends have started some kind of business of their own and are still doing it up to this day.

I don’t like starting a business, where else can I invest my money and still receive regular income?

However, there are a few that don’t want to go into business and want to relax and enjoy life after their hardworking years abroad. In spite of, not owning a business or going to work a single day of their lives anymore they still have passive income coming in regularly to support their daily living. 

This is in the form of dividend income. Investing in the stock market buying dividend growth companies. Once you buy a share of the company you will become a part owner or shareholder of the company. These companies will provide money in return for investing in them in a form of dividends. As a result, you will receive dividends from these companies either quarterly, semi-annually, annually, and also monthly in many develop countries.

If, you have a long term horizon and your goal is to receive regular income then dividend stock investing is the way to go. If, you already have an account with BDO then it is a lot easier opening an investment account with BDO Nomura.

However, one important note to remember,  investing is a marathon and not a sprint. Patience, discipline,  investing regularly and re-investing all dividends (compound interest) and exercising due diligence is the key to building wealth and increasing your passive income. 

I am a huge fan of investing in dividend growth companies. In fact, I am already late in the game having only learned this strategy in the past 8-10 years. Nevertheless, if I have the time to do it all over again, it is starting investing in dividend growth stocks at an early age. Something that I share utmost importance to my children.

Huge benefits of living in the digital age

There are so many reasons why our generation is considered the best time to be an OFW or even just an employee working back home. We now live in the information age.

In this digital age, life appears to be a lot easy as a good deal of information we can now obtain through the internet. Firstly, we no longer need to go to the library to research on something. Secondly, we don’t need to buy newspaper to read current events or how our stocks are performing? Lastly, we can easily obtain all this information through our smartphones in the comfort of our home. That is to say, why, many in our generation considered our era, as the best time to live.

With a mobile phone in your possession, you can have breakfast in Manila and browsing the current market value of your investments. Just in the same way, you will be having lunch in Singapore and able to buy more shares of your company. Finally, later that evening while on a business trip to Thailand, got notification those dividends are declared on one of your company holdings. Undoubtedly, everything is possible because of the technology in your hand.

Identically, if you work in Saudi Arabia as an engineer or bartender on a cruise ship, you will be able to monitor your investments anywhere. Additionally, you can buy and add shares to your stocks anytime even if you’re not at home. As you can see, there is no need to go to the bank and no need to see your fund or financial adviser.  Above all, there is NO MIDDLEMAN. You can perform all of your transactions at the comfort of your home, with your smartphone wherever you are in the world.

A new generation has now shifted its emphasis on how to enjoy life  

It is through traveling, exploring other parts of the world, learning other cultures, meeting new friends along the way, and making great memories. This is one of the advantages of a dividend investor as compared to an investor who runs a physical business. The freedom to be away anytime. According to research spending money on experiences rather than physical objects, makes us happier. 

For all those reasons, I am a great fan of dividend income investing because with technology I can manage and monitor my investments 24/7 anywhere in the world. 

My Final Thoughts

With the advancement of technology, many considered our era as the greatest time in history to live. As an OFW you can start building other sources of income, while actively working overseas, whether starting up a business, rental properties, paid hobby, and or investing in dividend stocks.

Whatever route you decide, start now.  Don’t waste your time!

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11 months ago

Internet is a huge part of my routine. I read on my gadgets. I buy ETFs (Questrade) and send remittance (Remitly) on my phone. I rarely use cash because responsibly using a credit card means getting a cash back every month. Hopefully, OFWs would take advantage of technology to invest, save, and earn extra income. It’s the willingness to learn and not age will determine one’s success.

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