7 financial mistakes that will prevent you long-term financial stability

The OFWs steady cash flow every month in form of remittances provide more than the basic needs of their families in the Philippines. The sudden improvement of financial standing changes their lifestyle and living conditions. They can now afford to buy material things and keep up with the latest trends.

payday loan mistake

The downside is the tendency to live extravagantly and overspend which lead to debts. Borrowing is not bad if the objective is to create additional source of income like business or investments. Affordable personal loans in Philippines is one of the most popular types of quicker cash loans.

Stay away from financial mistakes that will prevent you long-term financial stability such as:

  • Spending future income

Many are guilty of this- “May darating naman na remittance sa katapusan, so I might as well buy this stuff by borrowing cash from someone.” This mindset and habit can get you into financial trouble pretty soon if you do not stop at once. It’s a big no-no!


  • Changing your lifestyle

Giving the life that you always wanted for your family is the best gift you could ever give to them. However, there is a temptation to live extravagantly and spend more than your earnings. The lure of credit card spending is also tempting.


  • Not setting aside money for emergency fund or savings 

Many OFWs send huge portion of their salary to families in the Philippines and leave just small allowance for personal expenses. They often sacrifice a little luxury for the sake of the family. They plan to save but often times they forget because of the demands of their families.


  • Always saying “Yes”

Granting all the whims of family and even relatives is not good. It is okay to help your relatives but sending money to finance a birthday party of your brother’s son is not wise especially if you will be borrowing from co-workers.


  • Being a “show-off” or “pasikat”

Avoid bragging your new-found lifestyle and acquisition. If you make it a habit, sustaining your “rich” image will make you financially- stressed.


  • Acquiring property or asset without plan

Without sure payment plan, this can affect your current budget. Goals such as buying a new car, house or commercial lot need sound planning. These goals will also motivate you to save, get additional source of earnings, work harder, sacrifice whims or secure loan. As Filipino working in Singapore, a loan from a Singaporean licensed money lender is one of the best options for pay day loans in SG. In fact, you can based it on the licensed money lender Singapore review to double confirm.


  • Falling for bad investments

Because OFWs earn more and can afford to pay, they become easy prey for scammers. Always check the investment offer especially if it promises double-money guarantee in a short period of time.

Take care of your money. What will happen when your contract expires and you do not have enough money during the waiting period? If you do not have savings or emergency fund, life will be difficult for your family. Be wise. Your future is in your hands.

4 waays to earn money – pinoy ways

Most “Pinoys” are really enterprising and creative people who can turn their passion into business. If you are one of these resourceful individuals, you can earn passive income while maintaining a regular job. More earnings will make you financially-secure and enable you to buy what you want without cutting your monthly budget. If you need a little “help”, a Pinoy cash loan is the quickest way to get fund.

Ways to earn extra money:


  1. Sell stuffs you don’t need

garage sale

You can start an “Ukay-Ukay” business. Have a garage sale. Shoes, make-up, clothes and other valuable items which are in good condition can be sold in higher price. You can convert your old and unused personal stuffs into cash by selling them.

Use a vacamt area of your house or sell them online to attract buyers. You can utilize the power of Instagram, Facebook, OLX and other online stores.


  1. Look for a side job

If you are good in writing, you can be a freelance writer or editor. If you are good in hosting, collaborate with event planners. If you sing well, earn by being wedding singer. If love teaching, become an online tutor. There are many side jobs that can give you minimal to huge income depending on your performance.

Side job can be fun while earning money because you are able to share your talent and skill. You can do it during weekends only or extra free time.


  1. Buy & Sell

If your friends and colleagues are impressed with your fashion style and other personal stuffs you are using, start shopping for them or sell items to them. Start with modest amount of capital then gradually expand your business. If you need additional capital, try cash loan in Philippines to finance your venture.

Create an online shop and sell unique or popular items. Promote your business through social media. Use and model your own products to attract more clients.


  1. Make a blog

Blogging can generate steady passive income if your blog articles are able to inspire and affect the emotions of virtual readers. So, if you have the gift of writing good stuffs, buy a website and learn the ropes of this trade.

There are many ways to earn extra money. All you need is to know is to find out what you can do best. If necessary, seek financial assistance from a cash loan provider and begin the journey to entrepreneurship.


Pros and Cons for Annual Wage Supplement (AWS)

December is the time of the year when employees are excited to receive the 13th month pay (Annual Wage Supplement) and the variable bonus (Annual Variable Component) which is computed by the Public Service Division of Singapore. However, it is important to note that giving 13th month bonus is not compulsory but a privilege which is incorporated in the employee’s contract or collective agreement.

It is not mandated by Singaporean law.

An employer can also negotiate the amount he will give to his workers if the yearly profit is low. If the owner decides to pay AWS despite the situation, he needs to cut down other expenses or avail a Singapore instant loan.

Annual Wage Supplement (AWS) is not compulsory because of the following reasons.

  1. The high operational cost will become higher during the month of December. Additional fund is necessary to pay the 13th month pay if the annual income is just average.
  2. The company is already paying a higher basic monthly compensation. Paying another month of salary on top of December pay would mean a massive amount of money from the buffer.

The downside of not paying the 13th month pay is detrimental to workers. When companies fail to give this additional pay, employees become resentful and unproductive. To combat these possible scenarios, owners must find ways to save money for AWS.

Small companies sometimes applied for a Singapore business loan to meet the expense. They can be available online and finding licensed money lenders open on Sunday is no big deal.

However, the decision who will receive full amount of 13th month pay remains on the employer’s hand. Active employees with high performance usually get it in full. Employees on probation and recently-resigned are given lesser amount which is calculated based on number of months they work in the company.

Another financial reward that workers expect in December is the Variable Bonus or Annual Variable Component (AVC). This type of compensation varies in forms and amount. Technically, it is given to reward selected workers contribution to company’s success during the year. Those who receive bonus have exemplary performances during the fiscal year.

Forms of variable reward:

  • Year-end bonus
  • Profit sharing
  • Deferred compensation
  • Holiday bonus
  • All-expenses paid travel incentive

Bonus which is given anytime of the year excites and retains employees. The opportunity to earn extra money is a great motivating force on top of monthly compensation and other benefits. Cash incentive in time of Christmas holiday is a wonderful way to appreciate the efforts and dedication of employees all year round. Seeing their happy faces is enough to compensate the cost of giving them bonus, even if it entails business owners to get a Singapore business loan.