Investing back in our Motherland

Being an alien in a foreign land, makes you think fondly of your home country.  With the dawn of globalization, it doesn't even take a while to hear news from the Philippines. However, it seems that everything seems to be the same, the problems, the traffic, the weather. But there are also things that change for the better albeit in small steps.

Living here in the States, I have come to realize that a major difference in these two countries is preparation or planning. Here,  people always talk about insurance, saving for college, retirement planning etc., while in the Philippines only a small portion of the population actually think about those things on a daily basis.   I won't say  that Filipinos back home don't want to have a good life or a better future because everybody wants that. Just look at the long lines at the lotto outlet stations especially when the jackpot price is enough to fund a whole province for a year. Or just ask  anybody for that matter if they would grab the chance to work abroad for a hefty sum of a salary and they would take it in a heart's beat.  People could go on and on and list the reasons to this seemingly never ending cycle. It may be the tradition handed down to us, the live-by-the-moment attitude or it could may as well be the tropical weather. But as Michael Jackson would say, let's start by asking the man in the mirror. As overseas Filipinos, our contribution to the Philippine economy is mainly by form of the remittances being sent month after month, year after year. Last year, the remittances accounted for 9% of the country's domestic output as measured by gross domestic product (GDP) according to the Bangko Sentral ng Pilipinas. Remmittances from overseas Filipinos grew 7.2 percent to a record level of $20.117 billion last year. That is a substantial amount and is second only to exports that by far  help the Philippine economy defy the force of a global slump. But are there still ways we can help out than just send out money to our families? What more can we do to alleviate our country and our fellowmen? During a recent signing of a memorandum of agreement between the central bank and the Commission of Filipinos Overseas, BSP Governor Amando Tetangco urged the beneficiaries of overseas remittances to save and invest more. One way we could help is to echo the plea of the BSP to our families and help them start something that could be a source of income.  The almost universal suggestion  would be to help them with their education so that in turn they could have a better future. Or we could look for small business ideas for them to start with. Even though it is often quoted that 95% of small businesses fail in the first 5 years of operation, still, helping them research and plan for this small venture might get a long way.  And while we're at it let's also gain knowledge in handling our personal finances so that in turn we could also teach it to them.

Investing in the Philippine stock market is also one way of boosting our economy. As the analysts at CitisecOnline.com say, right now the Philippine stock market is halfway through a bull market supported by low interest rates and much-improved domestic economic fundamentals.  In simpler terms, if you want to start investing in the stock market, you might as well start now. However, if you're still new to the stock market, be careful not to "trade"  in it but rather "invest" your money for the long term, buying blue-chip stocks month after month regardless of the price and reap the rewards in the future.

These are just some ways that we can help our country "financially". Of course there would be other excellent suggestions out there. But the most excellent way would be to start early and influence other Overseas Filipinos as well.