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How families should spend money sent by OFWs in UAE

The five percent value-added tax (VAT) that was recently implemented in the UAE might not be a big deal for high-earning expats in the UAE, but for the Overseas Filipino Workers working here, it means that they would need to hold on to their money a little tighter.

Since prices are getting higher while their salaries stay the same, it is not only the OFWs who should be wise in managing their finances. Their families in the Philippines should be reminded not to spend recklessly as well.

So how should you spend the money being sent to you?

1 Necessities above everything
Needs over wants – it may seem cliché but when families receive remittances, their go-to place is the shopping malls, department stores or restaurants. Pay your monthly bills first, get some groceries, and buy the other necessities you would need. It is not every day that OFWs can send money to you, so first, make sure to save for the rainy days.

2 Save up for education
Education of their children is the very reason why millions of Filipinos toil hard in unknown lands. It also one of the things that their families back home must prioritize: when they receive an x amount of remittance, they must always save a portion of it for the education of the children of they relatives abroad. This way, the OFWs would not have to spend his/her entire life away from them as well.

3 Don’t gamble
Families must never be tempted to burn the hard-earned money of their loved ones overseas. Blood, sweat, and tears were shed to earn every cent of what they sent to you. If your reason to gamble is to earn a quick cash and help them, you’re not doing them a favor. You will only leave them as poor as they were before.

4 Learn to say NO to someone who wants to borrow money
If you have neighbors and friends who often ask you if they can borrow money, take some time to think about it. Remember, it is not your money as well. You only help manage it. So, instead of being obliged by your soft heart, it would be better to ask your family member abroad first before handing out an x amount to someone else.

5 Invest in SSS, PAGIBIG, PhilHealth, etc.
Since they are the ones working hard for their money, their efforts should not go in vain. You should open or help them manage their SSS, PAGIBIG, PhilHealth, or other insurances that will benefit them when they finally retire.

Which of these tips you think can help OFWs? Let us know in the comment section below.

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