Emergency Fund

What is Emergency Fund? Emergency Fund (EF) or Contingent Fund simply means that you have money saved that you can use in case of  unforeseen events in life (can be a matter of life and dead situation).

Ex. lost of job and immediate medical needs (note: wanting to buy a new car or bag is not an emergency situation)

Ideally, EF should be equivalent to 3, 6 or 12 months of your total monthly expense. For a starter, just prepare 3 months. If your monthly expenses is P10,000/month then multiply it by 3 months, gives a yield of P30,000 (Ex. P 10,000 x 3 = P30,000). For 6 months worth, it should be P60,000 and P120,000 for 12 months Emergency Fund.

Since you cannot touch this EF, it is best that you put this to a high yielding account that you can still withdraw anytime that you want it without any penalties. Ex. Bank Time Deposit or Special Saving accounts.

Next Topic: Make More Money or Live Within Your Means.

Why Purchase a Life Insurance?

If you love your family/loved ones, YOU NEED TO BUY A LIFE INSURANCE.

Next Topic: Emergency Fund

How to Save? My Unusual Saving Tips

 The most common advice we received on how to save  is to Pay ourselves first by saving at least 10% of our income. 

            Income - Savings = Expense

My Way : thru Forced Savings, wherein certain amount of money is monthly deducted from my salary or payroll account to apply for all my future needs, as shown below:

Why Forced Savings? Forced Savings gives me no other option, but to live with the money that was left after all the deductions. 

Next Topic: Why buy a Life Insurance?