As an OFW, I thought earning in a stronger currency meant I’d be able to save easily. Working in another country would be a simple solution to getting out of debt and into financial success. But without a clear budget, money slipped through my fingers—small daily expenses added up, and by the end of each month, my wallet felt lighter than it should.
Sound familiar?
If you’re working abroad and want to make sure your hard-earned salary actually builds a better future, it starts with learning how to budget smartly. Here’s what helped me, and what might help you too.
1. Understand the Cost of Living in Taiwan
Before anything else, you need to know how much things actually cost here. Your expenses will depend on where you’re based:
| Category | Estimated Cost (Monthly) |
| Rent (shared dorm) | NT$250 – NT$1,600 |
| Utilities | NT$90 (some employers cover this) |
| Meals/Groceries | NT$100 – NT$30 per meal |
| Transportation | NT$15 – NT$30 (per scooter trip or train ride) |
Tip: Cities like Taichung and Kaohsiung offer cheaper living options compared to Taipei.
2. Create a Monthly Budget That Works
Here’s how I structure mine:
Step-by-step:
- List your income: Salary, overtime, side gigs.
- Break it down:
- 50% for essentials (rent, food, fare)
- 30% for wants (shopping, travel)
- 20% for savings and investments
Note: This is called the 50-30-20 rule, and it’s a simple way to start budgeting without feeling overwhelmed.
3. Track Every Peso (Or NT$) You Spend
When I started tracking my daily spending using a notebook and, later on, a budgeting app, I found the leaks—daily milk tea runs, spontaneous night market trips, and double remittance fees.
Tools I recommend:
- Mobile apps: Mint, Goodbudget, or Spendee
- Manual method: Write it down in a notebook or use a Google Sheet
Note: Tracking helps you become more mindful of what you’re spending on—and why.
4. Be Smart With Remittances
Supporting family back home is non-negotiable for many of us. But it shouldn’t come at the cost of your own stability.
Here’s how I do it:
- Set a monthly limit for remittances
- Use low-fee platforms like Wise or Remitly
- Talk to your family about budgeting and savings on their end too
Tip: You can help better if you’re not financially drained yourself.
5. Build an Emergency Fund (Seriously)
One month, I got sick and couldn’t work overtime. My income dropped, but my expenses didn’t. That’s when I realized the value of an emergency fund.
My simple formula:
- Save 3–6 months’ worth of basic expenses
- Store it in a separate account (no touching!)
- Add to it monthly—even NT$500 is enough
6. Cut Back Without Feeling Deprived
You don’t have to live like a monk, but you can trim some fat without suffering:
- Cook meals instead of ordering out
- Use a prepaid phone plan
- Opt for secondhand or discounted items
- Commute instead of using taxis
Tip: Small choices today build financial security tomorrow.
7. Invest in Yourself and Your Future
Money isn’t just for surviving—it’s for thriving. I put part of my savings into:
- Time deposits in a local bank
- Online courses to upskill (TESDA, Coursera, Udemy)
- Insurance to protect against illness or accidents
Tip: The earlier you start, the bigger your future grows. The good news is that the Philippine government is just as invested in helping our kababayans build that future. Programs from agencies like TESDA, OWWA, and DMW offer financial literacy training, livelihood grants, reintegration support, and even scholarship opportunities for your dependents. These aren’t just safety nets—they’re stepping stones to long-term stability, whether you choose to stay abroad or eventually come home to start fresh.
8. Prepare for the Unexpected
Unexpected costs happen: medical emergencies, flight rebookings, even job loss.
What I’ve learned:
- Always keep a miscellaneous fund (5–10% of income)
- Consider getting health insurance
- Have a credit card as a backup—but use it wisely
And most importantly, stay adaptable. Adjust your budget as life changes.
Frequently Asked Questions (FAQs)
Q: What’s the best budgeting rule for OFWs?
A: The 50-30-20 rule is simple and effective. You can adjust it based on your needs, especially if you’re aiming to save more aggressively.
Q: How much should I send to my family?
A: It depends on your income and expenses. Set a fixed amount each month and prioritize your own financial safety too.
Q: Can I open a savings account in Taiwan?
A: Yes, many banks allow foreigners to open accounts as long as you have an ARC, passport, and local address.
Q: What apps can help with budgeting?
A: Try Mint, Spendee, or even a Google Sheets template. Consistency matters more than the tool itself.
Conclusion
Budgeting isn’t about restrictions—it’s about making your money work for your goals. Whether you’re planning to build a house, start a business, or simply send your kids to school, smart budgeting turns your salary into long-term success.
If I could go back in time, I’d tell myself this: “Don’t just work hard—budget smart.” Because every peso you save now is a step closer to the future you dream of.