How to become a Debt-Free OFW

"Having a debt is like sky-diving with a parachute on. You wanted to go down faster but you cannot."

You will never know you can do something unless you start doing it.

Earlier this year I have decided to pay off all my debts to become debt-free by the end of the year. Yes, I do have debts. I'm pretty sure most of us do and I believe that OFWs like me also aims to be debt-free as early as possible so that they can focus more on saving and investing.

Here are some baby steps you can take to start your goal of being debt-free.

Don't remit everything

I know this could be difficult as most of us are sole bread winners. I know you can't afford to provide as much as you can to your family back in the Philippines. But, you should learn how to keep something for yourself.

Do not buy on a sale

A sale is not a sale but an advertisement. A sale is a promotion in disguise. It is often used by a shop to generate SALES! Ask yourself these questions before you buy something:

Do you NEED it? Know the difference between NEED and WANTS

Can you AFFORD it? Have you read about 'KUROT' and 'DAKOT'?

Do create a written budget

And post it on your wall, door or beside your bed. Yes I know some of us already have a budget -- virtually. Virtual budget means you have a blurred idea on the expenses for the present month and most likely to overspend since you don't have concrete limits written somewhere.

List your debts and challenge yourself

Already on the fourth step and it's the first time I mention about debts. Once you do are already comfortable with the three steps above, I strongly believe that you are now ready to eliminate your debt.

Create a written list of your debts. It's up to you on how you prioritize each. Some would pay the smallest first while some would clear the one with the biggest interest rate first.

After creating the list, set a deadline on when you wanted to eliminate this debt. For me, I wanted to clear one of my credit card debts by the end of this year. Your deadline should be feasible and realistic.

Save and invest

Who says you cannot save and invest while paying off your debts? I did this by creating a 52-week money challenge.

Now, I am very sure that one can be debt-free if he can follow these simple steps!

Mark Hugh Neri

Looking for financial planning workshop or for life and/or health insurance with investment options? Got questions related to personal finance? Feel free to message me at Money Gizmo (see link below)

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