Why Have a Savings Account?

With most people having a steady job, you may sometimes wonder if you need to have a savings account. To understand this, let’s look at a couple of points.

The most probable scenario of you working abroad is this: you work for one full month, you get your salary at the end of the month, and you start the expenses: sending some money home to loved ones, and saving some for your own needs. Usually, by the time the month ends either you or someone from your family may end up in need for more money. However, having a savings account may make things a bit easier on your side.

What is a savings account?

A savings account is one you use specifically to set aside a given amount of money every month. This money is your emergency go-to fund, your pledge for realising some dreams.

What are the advantages of a savings account?

This account is very secure. All your investments are safe. Besides, there is the advantage of interest rates. Most savings accounts have the option of being enlarged, offering interest rates at the same time. Besides, life is quite complicated and you never know when you may need some emergency funds.

How do I set aside money for a savings account?

Make it a rule of thumb to set aside at least 10% of your monthly income for your savings. Actually, it is better to save up to 20%, with 10% as your emergency fund and the other 10% as money for plans and dreams.

Are you planning to have a savings account? We at WorldCom Finance can be of help. Make sure to use the best options and get the best rates for your investments.

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The Light of Opportunities: How Can OFWs Avoid the Deadly Route to Debt?

Despite the fact that OFWs earn a higher income than most of the locals who stay in the Philippines, many of them still fail to manage their finances well, or manage them in any way at all. As a result they may go home without any income and even having mounted piles of debt.

Why does it happen like this? The first and most common reason is that there is a "culture" of borrowing among Filipinos. Actually, 8 in 10 Filipinos have borrowed money for expenses like food, utilities or education.

OFWs are no exception, but in order to not have to extend their stay abroad, they need to be cautious and manage their income in a way that doesn't take them to loads of debt. So, we at #WorldCom Finance offer you too look at the times when borrowing money is okay

When is borrowing okay?

1. Borrowing for real needs
No, a new iPhone isn't one of them. Only borrow money when you have no way of not doing so: e.g. paying for your kids' education. Never borrow money for leisurely activities or outings. You may fail to notice how these debts add up.

2. Borrowing for business
If your borrowing is going to result in you earning more money, you may go for it. However, make sure that you never borrow from sources with interest rates higher than 20%.

3. Borrowing from legit sources
Whenever you borrow money, it's mandatory that you do so from legitimate financial institutions. Never borrow from unknown sources.

What to do with existing debt? 

If you don't wanna end up in a bad situation, start paying off your debt as soon as soon as possible. Remember that getting rid of it is your number one priority, therefore, your needs and wants can wait a little. Strictly manage your money (You can do so using worldcomfinance.com products) and don't allow extra expenses to your family.

Once you've got rid of debt, start saving up to 20% from your paychecks, this way, you will be in the position of a lender, not the borrower pretty soon!

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WorldCom Finance against OFW poverty

Being an overseas Filipino abroad isn’t an easy task. People leave behind their families, friends, acquaintances, and entire careers to move to another country on their own and make a better living for their loved ones.

It’s here that the path to a better future lies, but it is often associated with hard work, low pay, and seeing professors in the Philippines work as nannies in this new location.

It’s only logical that this kind of sacrifice should result in exceptional income that would ensure a wonderful future in their homeland upon their return. However, if this is the reality, why do millions of Filipinos get stuck working abroad for years on end without any hope for improvement. And why do they stay in poverty even given their long hours of work?

In 2010, Fr. Edwin Corros revealed that 60 percent of the OFW families remain poor. Among dozens of reasons some like paying off debt or being paid less than promised are rather weighty. However, no reason is as bold as consumptionism.

What do we mean by this?

As an OFW sends money back home for schooling, education, bills and savings, the family starts off getting into the “spending mode”. They can treat their friends and neighbors with drinks, go out every other day and live a luxurious life filled with gadgets, entertainment and fun… for the first half of the month. And then they contact the OFW asking for more money that this employee, who also has traits of consumptionism just can’t afford to send. And off to debt they go.

The strangest thing is that next month when the money comes in, nothing changes. The spending behavior remains the same, and it only adds to the debt already lying heavy on the OFW’s shoulders. This results in disasters: OFWs start looking for second jobs illegally, they get exhausted and are tricked into working in extremely bad conditions. An OFW who has spent a decade working abroad can finally return home empty-handed with nothing saved for education, home, or a better future.

We at WorldCom Finance realized how aggravating this scheme is, and created a money remittance service that cares. Our money management schemes, saving accounts and direct payment systems will allow OFWs not to get into debt and to set aside money for their dreams. Visit www.worldcomfinance.com for more detail.

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