OFW Stories in Singapore (Part 1)
Have you tried spending P200,000 in a day?
This was the first question my friend asked me during one of our lunch in a local hawker centre in Singapore. (OFW Stories in Singapore (Part 1))
My friend went on and shared with me the story of his officemate, let’s just call him Peter, a regular wager OFW in Singapore.
Peter went to a vacation in Manila and spent P200,000 for the birthday of his son in a prime location where rich people do gatherings.
He spent all his money and savings on that vacation and asks friends to loan him money when he then returned to Singapore.
P200,000 expense for the birthday of his son alone, it excludes the pasalubongs for his kapit–bahays at pati mga ka-barangay kasama pa.
I know a lot of “Peter” not only in Singapore. They are the type of OFW who spends money just to impress people, spending on things which they cannot afford.
Working on a foreign land is not easy. The culture and homesickness is really hard but as per Peter:
“syempre 1st birthday ng anak ko dapat magarbo ang party. Ano na lang sasabihin ng mga ka-barangay at mga friends ko, wala akong pera?”
“Dpat may pasalubong din lahat pati kapit-bahay at ka-barangay. Ano nlang iisipin nila? Nakakahiya masabihan pa akong kuripot.”
So to impress people he reasoned out that he has to have extravagant birthday party for his son. He also bought new clothes, new gadgets just to impress people. Dapat imported lahat ng gamit and updated mga gadgets.
Pasikat ika nga. Then upon returning to Singapore, He now has to borrow money for food, transpo and for rent.
My friend told me that he tried many times to invite him to attend financial seminars, but Peter has all the reasons not attend seminar.
He asks the following questions:
Peter: May bayad ba yang seminar na yan?
My friend: $35 lang
Peter: ang mahal nmn nyan, wla akong pera.May libre bang pagkain jan sa seminar na yan?
My friend: wlang free food, pero for sure you’ll learn about stuffs that will help you regarding financial literacy.
Peter: may lakad ako nyang date na yan, next time nlang
According to Will Smith
If Peter knows only how to Invest, he could have grown his money by at least a minimum of 12% when he put his money on an Investment vehicle.
|Year 1:||12% of 200,000 = 24000+ 200,000 = 224,000|
|Year 2:||12% of 224,000 = 26,880 + 224,000 = 250,880|
|Year 3:||12% of 250,880 = 30,105.6 + 250,880 = 280,985.6|
|Year 4:||12% of 280,985.6 = 33718.272 + 280,985.6 = 314,703.87|
|Year 5:||12% of 314,703.87 = 37,764.46 + 314,703.87 = P 352,468|
His P200,000 becomes P352, 468
That is the power of Investing and Compound Interest.
This is a real story of an OFW here in SG, Peter is not the real name of the person. I shared this story not to humiliate; my only objective is to share to people so we can get the lesson of the story.
1. Practice Frugality
(Remember your main reason on why you decided to leave your family and work abroad, diba para mag-ipon?)
2. Only spend what you can afford
(It’s okay to spend for your family but As for Peter’s case, he spent all his money, pagbalik ng Singapore, nangutang sya sa mga friends nya to pay off the rent, food and transpo)
3.Learn how to Save and Invest
(So you can grow your money and make money work for you instead of you working for money.
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