Complete Guide to Saving Money for Migrant Workers: Smart Strategies to Maximize Salary

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Becoming a migrant worker overseas is a major step with a noble goal: saving for your family’s future. However, despite competitive salaries, many struggle to reach their financial targets due to a high cost of living, lifestyle temptations, and, most detrimentally, expensive money transfer fees.

Do you know that without proper planning, your savings potential could disappear? A large salary can vanish if you don’t control your daily and monthly expenses. Don’t let your hard work result in minimal savings. Financial discipline is the key you must hold firm to.

This article is your complete guide. We will provide saving money for migrant workers through realistic and practical budget management strategies, and recommend smart ways to maximize your salary, from daily savings to maximum money transfers.

List of Content

Understanding Salary Allocation and Budgeting

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The main key to saving is making your savings a priority. You must treat the money to be saved as a “mandatory bill” that must be paid first.

Adjusted 50/30/20 Budget Strategy

The 50/30/20 budget model is often used, but for migrant workers who want to save aggressively, this model needs adjustment. Since the majority of living expenses (like accommodation and food) are covered by the employer (especially for Domestic Workers/FDW), you can change the allocation focus:

70% for Savings/Investment: This is the aggressive percentage you should send to Indonesia or save.
20% for Personal Needs: Allocation for communication, toiletries, and optional transportation.
10% for Wants/Social: Allocation for entertainment or snacks on days off.

Prioritizing Savings (Pay Yourself First)

This is the most important principle. Immediately after your salary arrives, transfer your savings percentage (e.g., 70%) to a separate account. Treat this as a mandatory expense that is already completed. Only leave the rest (30%) for monthly living expenses.

Create a Remittance Emergency Fund (Buffer Fund)

To anticipate unexpected exchange rate fluctuations or urgent needs at home, set aside a small portion of the allocated transfer fund (e.g., 10%) into a reserve account. This fund will guarantee that your remittance amount remains stable even if the exchange rate drops.

Daily Living Cost Saving Strategies (Operational)

Daily expenses, no matter how small, can become a big burden if done routinely. Here are money saving tips for migrant workers in daily life.

Save on Food and Drinks

Prioritize cooking for yourself (packing lunch) if your employer allows it. Bringing your own packed lunch to work or on your rest day can save dozens of dollars a week. Look for the cheapest markets or grocery stores (e.g., in Singapore’s heartlands) to buy your personal food supplies.

Optimize Transportation and Communication Costs

Control your two main operational costs. Use public transportation (MRT/Bus) with integrated cards (like EZ-Link in Singapore) and always avoid taxis. Choose the cheapest prepaid data plan that offers a large data quota at a fixed price. Utilize public WiFi when outside to reduce data usage.

Personal Shopping and Lifestyle Control

Shop for toiletries and personal items at discount stores (value shops) or buy in bulk for routine needs. Avoid overspending on your rest day. Choose cheap or free activities (e.g., visiting parks or libraries).

Maximizing Money Transfer (Remittance)

After successfully saving, the next step is to send it to Indonesia with the minimum possible fee and exchange rate markup. This is where the platform decision becomes strategic.

Avoiding Hidden Fees (Exchange Rate Markup)

Always choose a legal remittance fintech that offers a rate close to the mid-market rate. Conventional banks often impose very detrimental hidden exchange rate markups.

Fee Optimization with Transfer All at Once

Fintech platforms (like Transfez) often use a low flat fee. To save money, you must:

Always send money in a large amount at once (once a month), rather than splitting it into multiple transfers. This reduces the frequency of the fee you pay.
Transfez Fee: The flat fee for sending from Singapore to Indonesia is very low, only 5 SGD or Rp 64,000.

Leveraging Rewards and Transfer Automation

Use the scheduled transfer feature (recurring payment) on the fintech app. This guarantees timely and consistent delivery. Furthermore, utilize point rewards and promotional programs (e.g., free fee at the start or referral discounts) offered by the platform.

Maintaining Long-Term Discipline and Financial Goals

Discipline is the engine that keeps your saving strategy running.

Set Specific Financial Goals

Clear goals are your strongest motivation. Set specific figures: Example: “I must save Rp50 million in two years for business capital.” Conduct a routine weekly or monthly budget review to track your progress.

Automate Savings and Routine Transfers

Use the Standing Order feature (if the bank allows) or Scheduled Transfer on the fintech app to automatically move your savings fund from your main account to your savings/remittance account. This eliminates the temptation to use the money.

Seek Additional Income (If Allowed)

If the regulations of the country where you work allow (e.g., in Singapore, this must be strictly regulated by MOM), consider legal part-time work on your day off. Always check your employment contract and local government regulations before seeking additional work.

This guide confirms that the key to success for how to save money for TKI in Singapore or other migrant workers is a combination of strict personal budget discipline and money transfer optimization.

Discipline: Set aside savings (70% of salary) as the first “mandatory bill.”
Efficiency: Use a fintech with a low flat fee and utilize the rewards feature for maximum money transfer.
Consistency: Automate transfers to guarantee your parents’ financial stability.

Immediately take full control of your salary. Set your monthly budget, and use an efficient transfer platform to realize your financial goals and a brighter future for your family.

Download the Transfez app for easy and affordable money transfers from Singapore to Indonesia!

Don’t just send money, send your love home. Transfez is the money transfer app made by fellow Indonesians, so we totally get your needs here in Singapore. It’s secure, the rates are competitive, and most importantly: you can be calm knowing your family gets instant confirmation. Ready to send your love, no fuss? Download Transfez on your phone now (available on Android & iOS)! #SantaiTapiSampai