3 Smart Investment Options for OFWs to Grow their Income

Overseas Filipino Workers (OFWs) have been hailed as the country’s modern-day heroes because of their hard work and sacrifice. They leave their loved ones and the comfort of their homes behind to venture into unknown territory, hoping to achieve financial prosperity.

Many OFWs succeed in their goals by managing and saving their hard-earned money well. But simply saving isn’t enough. In order to make the most of your earnings and live a comfortable life once you finally decide to go home, you must consider investing.

Investment Options for OFWs

Below are smart investment options OFWs should consider.




Franchise a business



Many people dream of opening up their own business to achieve financial security. Unfortunately, not everyone succeeds and only end up in a deeper financial distress. If you want to start your own business but don’t have the experience, you can try franchising. Franchising is often considered a safer alternative because you are buying a tested-and-proven business model, with all the right products or service and system already in place. The marketing has been done and all you need to do is follow the operational model of the franchisor. Of course, you need to attend training and seminars to familiarize yourself with the business model and the product or service.


Real estate



Real estate is a popular investment option for OFWs. One reason is that compared to other investment vehicles like mutual funds, real estate is tangible. You know its current state and are in control of it. There are plenty of ways to earn from investing in real estate. For instance, you can buy a condo or a house and rent it out. This earns you an additional income for you and your family. Or you can also venture in a home renovation project and buy down run-down properties if you have a bigger capital. You can transform and renovate it, and then put them into the market at a much higher rate.


Liquid and professionally managed investments



If you want to invest but don’t have the time to monitor and keep track of your investments on your own, you can try going for liquid and professionally managed investments. The great thing about these types of investments is that they don’t require you to be physically present in order to check their performance. You can monitor everything online. Below are some examples of liquid investments:


Mutual funds



This is a type of investment vehicle in which your money is pooled with the money of different shareholders and invested in different types of assets. This is considered the simplest type of investment because the fund is handled by a professional fund manager and let’s participate for as low as Php 5000.


Stock market



Investing in stocks means you have a share in the ownership of a company, which entitles you to a part of the company’s earnings and assets. Compared to mutual funds, stock investments are the riskiest but will also yield the highest gains. This is why you need to do your research before investing in stocks.


Bonds



Buying bonds means you are lending money to an entity, typically the government or a company. This basically allows you to be the bank. Investment bonds are typically low risk but also have lower returns.

Before you begin investing, make sure to eliminate your debts first. Whether it’s your credit card debt or an OFW beneficiary loan taken by your family, paying debt first is advised. Once you’ve done this and are ready to invest your money, you need to answer two questions: how much are you willing to invest and where you want to invest your money. It’s vital that you study and understand your options carefully, and learn the potential risks that come with them.
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