Protection
Put yourself at ease by protecting those you love
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{{label}}10 July 2019
A Filipino seeking work overseas can sometimes be overcome with the most glorious possibilities--the prospect of living independently, earning a sizeable income, and exploring new sights. While all that can really be exciting for you, there's also a need to learn how to manage your income and plan your finances. And when you don’t plan or anticipate your needs, you run the risk of making financial mistakes which can ruin your overall well-being. What can these mistakes be, and how can you avoid falling into the trap of financial ruin?
Mistake # 2: Living large while incurring or not settling your debt. You may have had to borrow money to finance your job application abroad. Be mindful of the effects of not paying your debts as soon as possible. As soon as you earn your income, don't be tempted to keep up with the Joneses--buying the latest gadgets and splurging on new shoes and clothes.
How to avoid the trap: Live simply and honor your commitments. If you had to borrow money, allot a portion of your income to debt payments so you can settle them in the soonest possible time. There is no need to impress anyone or flaunt your new wealth. The benefits go a long way in investing your income wisely and ensuring your family is taken care of in the future.
Mistake # 3: Not planning for health-related emergencies. As families struggle to balance their bills, setting up a budget for health emergencies sometimes gets passed over for other immediate expenses. But part of keeping your family’s health and safety is being financially ready for any illness or accident that might happen. It is important to have some form of protection for you and your family so that these kinds of emergencies will not break your budget.
How to avoid the trap: Include your life and health emergency plans in your monthly budget. How will you fund health emergencies in the future? An ideal way for you to prepare for these unforeseen expenses is through BPI AIA's Dollar Protect Plus, which allows you to grow your US dollar portfolio while at the same time protecting your income through its life insurance component. Optional riders include accident and health coverage plus medical reimbursement, which prepare you for health-related expenses.
Mistake # 4: Not preparing for retirement. One thing that any working individual—an OFW in particular—needs to remember is that you cannot work forever. Time will come when you must stop and rest and enjoy the fruits of your hard work. When that time comes, OFWs like you must have enough funds and a form of insurance or protection to help you live comfortably in retirement.
How to avoid the trap: Set up your retirement fund--and start early. Grow your fund beyond the usual savings account by investing it in different financial channels such as mutual funds or stocks.
Mistake # 5: Not making financial literacy a priority. Financial literacy means being able to understand how your money works and having the skill and knowledge to make informed decisions concerning your finances. It is a must to know that there are several opportunities to grow your money, one of which is investing using the currency that you earn.
How to avoid the trap: With your income as an OFW, you are a step closer to achieving financial freedom for you and your family. Maximize your opportunities with Dollar Protect Plus, an affordable plan that allows you to fulfill your goal of providing for your family, providing life and health protection, and growing your foreign currency income through investment.
Not sure how to start? For more information, visit the nearest BPI branch and talk to a Bancassurance Sales Executive.
Invest in both your health and wealth with BPI AIA Wellness Series