3 Smart Ways for OFWs to Grow their Finances in 2019

3 Smart Ways For OFWs To Grow Their Finances in 2019

OFW remittances hit an all-time high of $32.21 billion last 2018 according to Manila Times. With this much disposable income, OFW families begin to consider ways to grow their money and maximize their wealth through investments. If you’re one of these families, then where should you start?

Traditionally, OFWs start businesses from something as simple as their own sari-sari store or carinderia. Others go into big businesses right away; creating their own restaurants, or buying condo units and other real estate properties. These, however, tend to be high-risk investments especially when people have no prior experience in handling them. Some tend to lose their hard-earned money instead of growing them, and in extreme cases, end up in debt.

To alleviate these concerns and find low-risk opportunities to diversify one’s portfolio, here are some suggestions where you can grow your money as an OFW:

Mutual Funds

Mutual funds became popular to the public over the last few years because of a local insurance company’s advertising campaign that packaged life insurance with financial security through mutual funds. Shortly after, its competitors followed suit, and it created a demand for this type of investment in the Philippines.

mutual fund For those who don’t know, mutual funds, according to Investopedia, is a type of financial vehicle making up of a pool of money amassed from multiple investors to invest in a variety of securities and assets. Mutual funds are controlled by professional money managers, who apportion the fund’s assets and strive to produce earnings for the fund’s investors. Simply put, the money you deposit is pooled by a professional manager who grows it.

As an OFW, this is a smart way to grow your money when you expect certain expenses upon the maturity of your portfolio. For example, if you pursue a type of mutual fund that matures in 10 years and you started while your child is 8 years old, the gains from that investment can be used for your child’s college tuition when he/she decides to go to college. Mutual funds tend to have fewer risks, especially if the company you chose is reputable, and if its members include portfolio managers have extensive experience in the field.

Stock Exchange

stock exchange When we talk about investment, having a portfolio in stocks is one of the top-of-mind answers for business-savvy people. This option isn’t as popular with the public due to the learning curve and the risks involved, but it’s worthwhile when you “buy companies with a long-term growth horizon.” Simply put, these are companies that are expected to grow in the long-term, and your money is sure to grow along with it.

To learn more about it, check out 10 Risks That Every Stock Faces. For those who want to learn it the traditional way, they can join Free Stock Market 101 Seminar from the PSE to learn more. Moreover, there are companies such as COL Financial that allows Filipinos based abroad to open an account without going to their office, making it easier for them to start investing right away.

Becoming a Funder

With capital on hand, more savvy OFWs fund businesses of their friends and family. Some opt to open franchises of food stalls or fast food chains in the regions, but being a funder for these still pose barriers to entry and high risks, especially to those who have never run businesses of the same kind.

become a funder For people who are new to the financial growth game, a low-risk, high-reward option is becoming a funder for receivable discounting firms. Receivable discounting, or alternatively known as “factoring” is a process wherein invoices (representing money owed to a creditor) are sold to a buyer for a lesser value. The buyer, known as the “factor,” assumes full responsibility of charging the creditor for the owed amount, and takes home the full value of the receivable.

Although this may sound complicated, it’s easy to get into the game. Financial institutions are starting to catch wind of this financial asset, but the best bet for OFWs is the start-up called Acudeen Technologies Inc. As a start-up focused on helping Filipino SMEs through receivable discounting, Acudeen gives a platform for low-risk, high-reward financial growth for people who are new in the game. All it takes is a few clicks and clearances, and you’re ready to cultivate your hard-earned money while helping fellow Filipinos to succeed!


There are many ways to grow one’s hard-earned money. There are easier and harder routes to take, but what one needs is a sense of determination and the tenacity to take risks. One should remember that money doesn’t last forever, but one can grow it. With the right strategy and attitude, the seeds of wealth you have sown in another country as an OFW can flourish in the years to come.

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