Ipon Challenge: How An OFW Saved P1 M In 3 Years With P20,000 Salary

An overseas Filipino worker (OFW) based in Saudi Arabia went viral on social media recently after he was able to save around P1 million in just three years and a half on a monthly salary of P20,000 by quitting his smoking habit, employing discipline and creating multiple streams of income.

Neil Ryan Lorenzo was celebrated by his friends and netizens on Facebook when he shared photos and a video showing the bundles of money he had saved on Nov. 13, 2019. As of yesterday, his post had been shared 49,000 times with 51,000 reactions and 17,000 comments.

“Naipon ko pala 75,400 Saudi (riyals) + 2,700 pesos, total po sa pera natin, P1 million mahigit po. Sobrang happy talaga ako (hindi) ko akalain sobrang laki pala ng ipon ko,” he said in his post.

The post provides a happy ending to Lorenzo’s challenge to himself to save money.

But the road to his first million was not as smooth as it seems. Life before becoming an OFW was rough for the 37-year-old Lorenzo.

He finished only high school because he says studying wasn’t his strong suit and learning English was a nightmare for him.

“Tamad po talaga ako mag-aral or dahil takot po ako mapahiya sa school dahil sa totoo lang, kahit anong pag-aaral gawin ko di kaya ng utak ko mag-aral lalo na sa English,” he said.

During his teenage years in Pateros, Lorenzo confessed that he skipped classes, engaged in fistfights and even thievery. At age 16, he started smoking.

When he finally graduated from Pateros National High School at age 21, Lorenzo decided to stop studying. He had his first girlfriend when he was 23 years old. This was also when Lorenzo became addicted to online games. He confessed that he resorted to stealing from his parents and lying to get gambling money.

“Ninanakawan ko na po magulang ko makalaro lang. Tapos nagsisinungaling na ako para lang makadiskarte ng pera panglaro ko,” Lorenzo admitted. 

He began spiraling into depression because of his unhealthy lifestyle and after he got his girlfriend pregnant at age 23. Without enough money or a job to support the needs of his own family, Lorenzo considered ending his life to get away from his problems.

“Kung ano-ano na po pumasok sa isip ko, parang gusto ko na po mang-hold-up or gumawa ng ’di maganda. Sobra akong depressed sa sarili ko,” he recalled.

Lorenzo was at the lowest point of his life when he received a call from his OFW brother offering him an employment opportunity abroad. Despite the measly salary, Lorenzo accepted the job.

“Tinanggap ko na dahil dito sa ’Pinas sobrang hirap maghanap ng work sa kadahilanang mahina ako sa English at baldado kamay ko. Kaya lagi akong bagsak sa interview at test. Tapos mahina pa loob ko,” Lorenzo told The Philippine STAR.

In 2007, he flew to Saudi Arabia and worked at a poultry house where he earned an average of 750 Saudi riyals or around P8,000 a month.

After five years, Lorenzo found a new job as a forklift operator where his salary increased to 1,700 Saudi riyals or around P20,000.

Because of his small pay, Lorenzo started looking for other ways to earn money. He tried selling prepaid load, gold and gadgets on installment basis to his co-workers.

He is also renting out a billiard table to local Saudi residents, where he earns at least P2,000 per day.

But because he was determined to save money, he computed the cash he was spending on cigarettes and realized that he could save up to P200,000 in three years if only he would stop smoking.

“Ang isang kaha 21 Saudi (riyals), sa pera natin P280. Kaya sa loob ng three years makaka-ipon ako ng P200,000 kaya inalis ko ang yosi ko at nag-gym na lang ako,” he said. Yosi is short for sigarilyo or Filipino for cigarette with the syllables reversed.

Over the past three and a half years, Lorenzo placed all his savings, including the money from his other businesses and the cash he would have spent on gaming and on buying packs of cigarettes inside two small tin cans.

According to him, he was able to save up to P50,000 a month with all his income combined. He was also able to send financial support to his sons in the Philippines. Lorenzo is separated from the mother of his first child.

To his surprise, by the time he opened the tin cans in November, he had already saved 75,400 Saudi riyals or around P1.03 million. The video of him opening his tin cans has been viewed 463,333 times.

 With the money he has saved, Lorenzo was able to buy his own house in Caloocan and renovate a room in his mother’s house in Cavite, which he had also bought with the help of his siblings who are likewise working abroad.

If Lorenzo merely depended on his monthly salary, it would be impossible for him to save a large amount of money. But because of his determination, discipline and resourcefulness, he was able to realize his dreams for his family and inspire people online.

“Ang mapapayo ko lang sa mga kagaya ko na gustong mag-ipon, huwag muna silang bumili ng mga bagay na hindi naman kailangan, kung gusto talaga nila maka-ipon, ’yung mga bagay na pinaggagastusan nila na wala namang katuturan, huwag muna nilang bilhin,” Lorenzo said.

“Katulad ng bisyo, pagkain-kain sa labas... dapat iwasan na. Kaya nga may alkansya, kung ano ’yung inihulog mo huwag na nila kukunin ’yun. Saka kapag inumpisahan nila mag-ipon, pangatawan na nila ’yun,” he added.