More and more Filipinos have found stable income by working online jobs.
Many enjoy greater purchasing power by cutting down on commuting and work-related expenses like clothing and food.
However, some remote workers still have a hard time saving money because of poor financial management.
Worry not! You can still improve your financial situation by steering clear of these common mistakes.
Living Beyond Your Means
When you earn more money, it’s tempting to upgrade to luxuries you don’t really need.
This often leads to incurring high credit card debts or loans, resulting in high interest charges which snowball into great debt.
Resist the temptation by prioritizing your needs over your wants -and sticking to a budget that aligns with your income.
It doesn’t mean you shouldn’t enjoy your money.
If you really want something, you can set aside money over time for high-ticket items.
For example, you can earmark around 5-10% of your income for that gaming console that you always wanted.
This way, you’re less likely to overspend.
Not Having a Budget
Having no budget makes it easy to overspend and lose track of your expenses.
To avoid this, make a budget that aligns your income, expenses, and goals.
You can try this money jar budgeting method, for example. It enables you to budget between your necessities, investments, and wants accordingly.
Treating Your Credit Card as Free Money
When we first get our credit cards, it may feel as if we have unlimited money.
Credit cards do have advantages like rebates and points.
However, they’re also a slippery slope towards impulse purchases or spending beyond your means – leading to high-interest rates on unpaid balances, resulting in financial stress and long-term debt.
Swipe your credit card only for purchases that you can fully pay off each month without incurring interest.
Not Having an Emergency Fund
Many families are just one emergency away from financial hardship.
An emergency fund provides a safety net when unexpected expenses arise.
For instance, if your air conditioner breaks down suddenly, the hot weather in the Philippines can pose health risks.
Your emergency fund can cover the repair costs or pay for a new one.
The rule of thumb is to save around 3 to 6 months’ worth of expenses to ensure you have enough funds to cover unexpected expenses.
You can also check out these tips to build an emergency fund as a remote worker.
Not Having Insurance
Sometimes, major emergencies like accidents, illnesses, or natural disasters can occur, and your emergency fund may not be sufficient to cover the costs.
That’s where your life and health insurance comes in.
Without it, you could experience financial difficulty or even bankruptcy because you’d have to cover expensive medical bills, property damage, or liability claims yourself.
So try to get a policy and HMO to cover potential medical expenses and other unforeseen costs.
Not Investing Your Money
If you’re not investing your money, you are missing out on opportunities to grow it faster over time.
If you have active income from your online jobs and passive income from interest and investments, you can reach your financial goals faster.
For starters, check out these simple investment options for remote workers.
Falling for Get Rich Quick Schemes
In the Philippines, there are so many get rich quick schemes like high-interest investment scams or pyramiding schemes.
Many are enticed because they offer high returns with little to no risk, which is unrealistic and often indicative of a scam.
So be very cautious of investments that promise the world.
There are no shortcuts to wealth building. Remember the principle of “if it sounds too good to be true, it probably is.“
With the tips above, you can avoid common money mistakes while building wealth with your remote job.
However, if you’re still looking for home-based jobs in the Philippines, you can sign up with Remote Staff for the best remote working opportunities for Filipinos.
Remote Staff can connect you with steady, long-term online jobs to help you build wealth with stable income opportunities.
Register today!
