Emergency Fund 101
To achieved financial freedom, money gurus will ask you to pay your debt first, save, secure yourself and have various kind of investments.
I read a lot of financial books and they are all saying the same thing. Every time you receive your paycheck they will advise to set aside at least 20% of it for your savings.
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EMERGENCY FUND
The emergency fund is something you can use for well, emergencies. Is travelling emergency? of course not… The things we could consider as emergency is losing a job, hospitalization, death or calamity.
It is advisable to save up to 3 months of your expenses (for singles) for their emergency fund and at least 6 months to 1 year for married individual with kids.
How are you going to know how much to save? Well, you should start with checking your monthly expenses. Tally it to check how much money your need to pay the bills, food, transportation etc every month.
For example you computed 20,000 monthly expenses then just multiply it to 3 for single and multiply it to 6 for those with kids.
The emergency fund should be put in places where you can easily get it in times of need. You can put some on the bank with ATM so that you can withdraw it anytime, or place it somewhere around the house so that even during strong typhoons and floods you have something to use.
I know it’s hard, you need to cut out some unnecessary expenses to reach this goal. You can opt to just cook at the house instead of dining out. Control yourself in buying new clothes or shoes until your reach your goal. Increase your income by doing extra things like those I have mentioned in this POST.
It’s never too late to start having emergency fund. In today’s time, we should Be Prepared. Salamat po, Mommy Levy.
thank you po sa mga tips
laking tulong β€
#SpreadtheLEV
Great read! Thank you for the tips. #SpreadTheLEV
Few years back, I have heard about this savings tip when our pastor was preaching about finances. Since then, I have copied the principles of savings. I have an envelopes for emergency funds, monthly expenses like bills, food, tuition fee, etc., then for travel, etc. I can really say that its all worth it because I’ve got control of my finances and now debt free!
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Just this year, we have started to save for our emergency fund. It is really hard but we know we must. We are focused in doing so and we have started to do the 10% of our monthly income. It is indeed a happy feeling knowing that we were able to do it. Next year, our target is 20% and we will really do to save for at least 6 months worth of our salary for our emergency fund. Thanks for this blog Mommy Levy this is very informative and helpful.
#spreadtheLEV
very helpful tips
I’m still trying to build our emergency fund. Parang ang hirap when you’re paying for mortgage kasi kasama sya sa iipunin mo.
Hi mommy salamat sa tips, ginagawa ko na talaga eto. Kamu ni hubby hindi talaga mahilig kumain sa labas o kaya magshopping, kaya nakakapagsave talaga ako. Now na may anak na kami mas lalo kaming naging mahigpit sa budget pero may time pa rin naman na makapagsaya paminsan. -Dangelyn Natividad-Taotao
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I always find having an emergency fund important. I like it that you show us how to compute for an emergency fund. this is a helpful post especially for those starting palang to save and ayusin ung finances nila.
True. We need to save for emergency cases. Nakakahiya if at our age na single with work or married with kids ay hihingi pa tayo ng pera sa magulang natin. Well, if kulang ang emergency fund, pwede siguro..at least konti nalang ang hihiramin sa magulang o kaibigan.
I want to share you what I do. I first set aside our emergency fund , then what is left is what I budget. That way, I minimize/prevent buying or spending on unnecessary items. π
Super helpful tips for us mommies gustong gusto ko tlaga magkaroon ng funds para may madudukot in case of emergency #spreadtheLEV
Hi Mommy, Thank you for your tips. It is really important to have an emergency fund and they say it should be worth at least 6x of your salary. Personally, what I do is I track all our finances (all accounts, investments) in an excel every month so that I have an idea if we are still financially sound. We make sure too that we meet the financial goals we set every year. Mahirap and it needs to be done π
#spreadtheLEV
Hi Mommy, Thank you for your tips. It is really important to have an emergency fund and they say it should be worth at least 6x of your salary. Personally, what I do is I track all our finances (all accounts, investments) in an excel every month so that I have an idea if we are still financially sound. We make sure too that we meet the financial goals we set every year. Mahirap and it needs to be done π
Great tips, mommy! I wish more Filipinos will be able to read posts like this.
Thank you soo much Mommy Levy for the tips!! Dami talagang matututunan sa mga blogs mo. Masarap sa pakiramdam at ang saya pag may ipon at nakalaan ss emergency fund. Pero kakayanin. Thanks again mommy. #spreadtheLEV
We really yave this so-called emergency funds. We started it mga 3 years ago na. It really helped. Iisipin mo lang na invisible sya until kailanganin mo na hehehe…
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Dapat talaga laging may emergency fund, lalo na if you have kids and sakitin ang mga anak. It’s great if hindi kelangan galawin ang emergency fund (in my case walang nagkakasakit sa amin pag ganun), pero iba na yung ready ka for certain circumstances. π
Thanks for this momshie! Plano ko talaga mag Ganito kasi madalas magkaroon ng emergency sa bahay na need ng money kaya sakto talaga itong mga tips mo. #spreadtheLEV
I just love joining giveaways and I’m glad how my mommy friends used to tag me on some ‘mommy bloggers’ giveaways’ it gave me the chance to win some great products and the most important part is that it gave me the chance to discover new great things and new great bloggers to follow just like you Mommy Levy, of course just make reading a habit for better understanding. π Once my LIP become an OFW, this one is really my goal especially ako na talaga ang mag manage ng expenses unlike ngayon na magkasama kami minsan di talaga kami nagkakasundo at mahirap talaga kasi we have two kids siya lang nag wowork and minimum wage earner. Mas gusto ko pa matuto sa pag iimpok ng pera, dahil alam ko hindi madali magtrabaho sa ibang bansa para it’s not only him providing for our future but also me by spending right and saving right. Thanks to this Mommy Levy #spreadtheLev
For me importante mag save for emergency fund,nag si save ako everyday kahit magkano..like last september,na hospital baby ko na 1yr. old..may nagamit ako for expenses sa gamot sa hospital. Thankful ako kasi may naitabi ako,hindi ko kailangan mangutang.
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Super thanks sa tips Mommy!! Ang sarap sa feeling pag may naiipon ka. Medyo mahirap pa sa ngayon pero kakayanin. Laking tulong nito mommy..
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Totoo nga mommy.. Naiisip din namen magasawa yan kaya lang minsan o mas madalas panapat lang ang kinikita namen magasawa sa mga gastusin..hayy sana balang araw makapagumpisa kame mag save for emergency fund.di naten masasabi ang buhay.. #spreadtheLEV
It is important to have a filled pocket to draw from incase of emergencies. I was in a situation ones, when one of my sons got really sick and was confined for 3 months, it waa hard times, we have saved a bit prior to his hospitalization but but enough to pay off his bills. It was really through grace (and the little savings we had) that we’ve overcomed it all.
i have always believed in emergency fund. Para di ko kinaka-stress ang buhay, i really need to have one, together with health insurance/health card. Sobrang stress ang mga emergencies
I agree to cook instead of buying food outside. Mas nakakatipid, healthy, at safe to eat pa :). dapat may emergency fund talaga.
This is one of my goals! It’s just been very difficult to do because there doesn’t seem to be anything leftover… But you’re right. If I really want to have an emergency fund I need to cut out extras.
Thanks for the tips ! β€οΈ
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