Emergency Fund

[sachism]

this is a very helpful thread.. gusto ko matuto how to properly segregate/manage your funds

[leelou]

we're just starting with our EF. i've opened a BPI-Direct Save-up account for this

[izzybaby]

this is so possible if there are at least 2 people working in your family. i've been super frustrated trying to start with level 1 but things just get worse. remind you i'm single and youngest in the family. but i'm just so "lucky" inheriting the misfortune of my parents and siblings.

[showermist]

what's possible sis?

it is possible. i am my family's breadwinner. the sole breadwinner for the longest time. pinag aral ko tatlong kapatid at bayaw ko. allowance ng mga magulang ko. gastusin sa bahay. and i was able to find ways to stash a bit.  i learned how to invest.

the first time, 1 month lang yung EF ko. ginawa kong 3mos, 6mos. tapos ngayon, i am funding it para gawing two years. it's  a process. kung nakaya ko, kaya mo rin.

i've been to a a situation na hindi ko alam kung saan namin kukunin yung isasaing namin ng hapunan. it's  very depressing pero hindi ako pumayag na manatili sa sitwasyong iyon. i strive. and it is paying off

[izzybaby]

^ thanks for the inspiring words sis. i know naman i can do it, these are just the days na nawawalan ako ng loob.

[joban99]

this is so possible if there are at least 2 people working in your family. i've been super frustrated trying to start with level 1 but things just get worse. remind you i'm single and youngest in the family. but i'm just so "lucky" inheriting the misfortune of my parents and siblings.

Hi Izzybaby, I agree with showermist, kaya mo yan. Im also glad to see you believe you can do it. One small tip though, as you seem to be the one providing for your parents and siblings, just make sure that you know how to manage them and not let them abuse you. Im not saying stop giving completely or reduce your giving to them by 50%, just explain to them the situation na naguumpisa ka lang sa buhay and you can still give, but you need to teach them how to fish for themselves and not make them too dependant on you. You need to tell them that you have to prioritize yourselft and your investments first. Theyll understand, and if they dont, well theyll just have to live with the fact that youll only give them a certain amount until you are stable. Tell them once your investments grow, then the amount you will give them will grow as well. But in the meantime, they need to find other ways to get money pag feeling nila kulang ang bigay mo. This way, theyll learn to be more independant and hindi aasa sayo para sa lahat.

[sarahsensible]

Mga sis sorry for being igno, but how do you define living expenses? does that include bills?groceries? tama ba?

I have to start this soon and ang hirap. Paano ba yun, our extra money napupunta sa insurance which covers us for accidental, hospitalization (aside from HMO kasi sa company naman yun), and *knock on the wood* pag may nangyari sa amin ni hubby may pera ang mga kids namin. Hindi ko alam if i can consider that as part of EF.

[ikaela]

^Tama, those are living expenses. Everything you spend on to live day-to-day, including electricity, water, internet/cable, food, transportation, laundry, entertainment, dog food if you have a dog, etc.

Insurance is different from an emergency fund; insurance is for when the ULTIMATE emergency happens (accident, death, disability). An insurance company won't cover you for things like a busted water pipe, a leaky roof, a sudden but not serious illness or even when you lose your job -- these are the kind of things that an emergency fund is for.

[betty]

question/suggestion: how  can you set aside an emergency fund if you have kids that go to school, a mortgage and living expenses to think about?

[sarahsensible]

^ same question sis. Difference lang, my twins are about to go to school pa lang kaya lang since 1 yr lang gap nila sa bunso mukhang sabay pa.

Pero parang may mali talaga sa pag handle ko ng finances, wala akong na set aside na EF pero when hubby wants to eat or out or gusto ko mag pa salon may pang salon ako. Or isama ko na lang yung sa "stress fund" kasi hindi naman din madalas 

sis ikaela oo nga nuh, napaisip tuloy ako. Since sa lola ko kami nakikitira kasi magisa na lang sya, she shoulders those lil emergency stuff dito sa house.

EF will also cover kapag may nangutang sa relatives?

[showermist]

question/suggestion: how  can you set aside an emergency fund if you have kids that go to school, a mortgage and living expenses to think about?

Treat your EF as a bill that needs to be paid monthly.  That's a start.

[kaiz]

^^ sis you have a stress fund? hehe. cute.

[sarahsensible]

^wala naman sis, nabasa ko lang din yan here sa thread hehe

[leelou]

@betty: sis, kaya yan. kami nag kaka-start lang with just 2K a month. wala naman sinabi target period when you should be able to complete it. yun ibang nga i read almost 5 years bago na-complete. basta importante, you will not touch the fund, only for emergency

[sarahsensible]

^ mukhang will start din sa 2k a month. I really don't know how pero kailangan magtiis.

[sachism]

mas maigi talga sis ang paunti unti kesa wala..

[kaiz]

Build your emergency fund as soon as possible. s*** happens. People get sick, things break, and fate is fickle. An emergency fund is like self-insurance: It’s a way to ameliorate the bad stuff that happens around you. Build your emergency savings as soon as possible, and when you can, build it bigger.
--- from getrichslowly.org

[betty]

i forgot to mention, and youre also paying for life insurance.

waaaah parang matagal tagal na ipunan to

[sachism]

will be OK to put your emergency fund sa time deposit? if yes, anong terms lang para easily pwede mawithdraw?

[design21]

question and i need your opinions lang about this situation:

It's just me and my husband no kids yet. We have our own savings but it's not enough pa. Both of our parents placed our inheritance na on our names. So on our bank accounts, nakaname na sa amin kami ni hubby magka and/or. We never touched it since we got married. since we have our own source of income naman, we have our house too nakapangalan sa amin magasawa, wala naman kami utang. He is working and I on the other hand manages our own business as in kami nagstart. What we inherited if something happens (i hope wala) can save us for atleast 5-10years for everything.

Question is: do i still need an emergency fund aside from our savings? Kasi we have several accounts on our own na purely from our income. wala nga lang sila pangalan, we distribute it monthly. Pagnagkakasakit or may namatay sa family, we don't have a specific account.