Emergency Fund

[sachism]

San ka naginvest ng MF?

[izzybaby]

im happy that i am little by little paying off my debts (installment na lang natira til mid-2012) and i am starting to build my EF. slow but moving...

[tsokolat]

just opened an account for my emergency fund, planning to build my fund little by little since dami pa din expenses. i know in time marereach ko din yung goal ko

[gelaest]

I am just starting to build my emergency fund.

It will be kind of hard since I am paying off some debts rin, buti na lang fixed per month yung debts ko. I called all my credit card issuers and asked to convert my purchases to installment.

So my monthly budget will go to debts and emergency fund as well. Though it is sad lang, for now baka mas malaki pa ang mapunta sa utang than sa emergency fund. But it's better na rin compared to nothing.

[showermist]

^ I know this is uncalled but I want to give you a tip:  Pay all your debt as fast as you can before saving in an emergency fund.  Kasi mas malaki yung interest ng debt compare sa emergency fund account mo.  Mas makakatipid ka.

Try to run the numbers and you'll know what know what I mean.

Kung meron ka mang konti sa savings account mo, use it muna as your emergency fund while paying off your debt.

[gelaest]

^ Thanks for the tip.

Fixed na rin naman yung monthly payment for the debt and lower na interest rate compared sa 3.5% monthly. I arranged na kasi with all my card issuers.

[freelancer_babe]

^ unless the debt is a low interest one that spans for 10 to 20 years amortization, such as a housing loan.

but true, pay those high interest debts right away. maiiksi lang ang terms ng mga yun and these eat up a huge amount of emergency fund.

[Dacian]

will open an account for my emergency fund soon.

[scents01]

yes me too, will start on wed (: excited!first time to have an emergency fund!

[izabelle]

^ I know this is uncalled but I want to give you a tip:  Pay all your debt as fast as you can before saving in an emergency fund.  Kasi mas malaki yung interest ng debt compare sa emergency fund account mo.  Mas makakatipid ka.

Try to run the numbers and you'll know what know what I mean.

Kung meron ka mang konti sa savings account mo, use it muna as your emergency fund while paying off your debt.

i agree with this.. mas masarap din mag ipon kapag walang utang.. kaya for me number 1 step sa saving ang pay all debts muna. (unless millions yun like house amortization)

[freelancer_babe]

Hindi ko pa nakakalahati ang emergency fund ko doon sa target ko. Pero ang sarap tignan at malaki ang laman kahit malayo pa.

Mas maganda pala ang ganitong feeling kaysa ganun ang amount ng utang. Lalo na kung New Year na New Year at ganun pa ang makikita.

Anyway, mga sis! Happy New Year all!

[swt_fem]

Bago palang ako sa savings..

question lang, ano ba mas magandang unahin, savings or emergency fund? I saw this thread and I just thought of it.

[freelancer_babe]

^ hi sis!

You should have one!

Actually building an emergency fund is saving in itself. It is a must to have an emergency fund. Di ka na mangungutang sa ibang tao/lender na may interest para lang may magamit kung nangangailangan.

Emergency fund is one of the reason why we need to save. Pag buo na ito you can start saving for other things.

Now if you have a CC for the purpose of using it in emergencies, you have to stop using that. Mahal masyado ang cash advance (yup may fee na agad after withdrawal) at iba pa ata ang interest na babayaran mo if the balance is not settled right away.

Emergency fund should be quite big - generally in the range of 5 to 6 figures, kaya di na naman kaya ng CC i-cover it because it is just a small percentage of the CC limit unless you were given quite a huge CC limit.

It is best to put your emergency fund in very safe and liquid instruments. Para sa akin the best ang isang savings account (passbook or ATM, but some people would rather use a passbook para hassle pumunta sa bank), time deposit, or SDA (if you have accumulated already a big amount).

But before an emergency fund, pay your high interest debts first. I'm referring to settling down your CC's outstanding balance that charges interest payments na, and personal loans na mataas ang interest. Lugi ka kasi sa mga ito kasi mauubos lang sa interest ang pera mo.

[swt_fem]

Wala pa akong CC hehe. Gusto ko nga sana para pag may gusto ako bilhin na mga gadgets or appliances na pwede 0% installment and also pang emergency pero parang nakakatakot parin kasi mahirap magpigil.

Hirap na hirap kami mag save, sa tuwing nakakapagstart kami makapagtabi, bigla nalang magkakaron ng unexpected gastos like magkakasakit si baby, may kelangan bayaran, may kelangan ipagawa, etc.

Ang loan ko lang is yung sa SSS na naka auto-deduct sa payroll (na nagastos narin namin kasi nahospitalize yung son ko)

[freelancer_babe]

^ ah, maliit lang ang interest ng SSS, mas maliit pa ito sa PAGIBIG. pwede mo na siguro umpisahan ang emergency fund.

ako rin sis maraming unexpected expenses na malalaki rin, pero namamanage ko pang mag-save. itong emergency fund tatapusin kong i-save ngayong year na ito. ginagawa ko kasi yung technique na nagba-budget ako sa savings agad, mga 20% ng gross na nakukuha ko sa akin. tapos yung natira sa budget yun ang hahati-hatiin ko sa expenses. kung kulang pa rin yun, kailangang gumawa ako ng paraan na pagkasyahin yun. di ko pwede nang galawin yung EF na nasa savings ko.

[mameejhy]

We don't have an emergency fund... Coz we're paying for some investments, ok lang ba yun?

[freelancer_babe]

^ mahirap kung walang emergency fund sis. usually mahirap i-liquidate ang investments at kung nangailangan ka badly ng pera, like hospital bills or suddenly losing job/income, baka mapilitan kang ibenta ng murang-mura ang assets or investments. finding a buyer could well be an issue too.

kaya it's generally recommended na buuin ang emergency fund above all things (except when one has high-interest debts, kailangan ito muna ang bayaran before building the EF) before investing.

[mameejhy]

^ Hospital bills - pareho kaming may medical insurance ni hubby
job loss - babalik kami ng Pinas lol!

Sa ngayon meron kaming 3 investments na binabayaran kaya parang wala ng pera para sa emergency fund... Pero, sige try ko na talaga this year, mag open ng BPI mAxi Saver - may form na ako hindi ko pa lang na ideposit ang pera hehe

[freelancer_babe]

^ don't get me wrong sa hospital bills - do you think yung medical insurance nyo covers everything? Marami na kasi akong narinig na stories na nagbabayad pa rin sila even after having an HMO. Also, are you able to access the funds right away - meaning, ibibigay ba nila agad ang funds sa iyo, or is it a reimbursement type? baka hindi lahat ng doctors at hospitals pwede? (you could check out the HMO or health insurance thread under "savings and investments").

But let me know if your medical insurance covers all - doctors, hospitals, types of sickness, and could cover senior dependents over 60, kasi ito ang hinahanap ko. I want the one that pays hospital bills outright at any hospital and not the reimbursement type.

on job loss - nasa abroad ba kayo ngayon? what if kung wala kayong pambili ng plane ticket? i-utang na lang ninyo? plane ticket prices are not that cheap though.

anything in the house that could break down unexpectedly and would qualify as emergency? (like a refrigerator break down, car breakdown, house repairs due to flooding, etc ... but TV breakdown and house improvements doesn't qualify as emergencies)

you will still need an emergency fund. sounds like you need a small one nga lang, but be sure to have one.

[mameejhy]

^ don't get me wrong sa hospital bills - do you think yung medical insurance nyo covers everything? Marami na kasi akong narinig na stories na nagbabayad pa rin sila even after having an HMO. Also, are you able to access the funds right away - meaning, ibibigay ba nila agad ang funds sa iyo, or is it a reimbursement type? baka hindi lahat ng doctors at hospitals pwede? (you could check out the HMO or health insurance thread under "savings and investments").

But let me know if your medical insurance covers all - doctors, hospitals, types of sickness, and could cover senior dependents over 60, kasi ito ang hinahanap ko. I want the one that pays hospital bills outright at any hospital and not the reimbursement type.

on job loss - nasa abroad ba kayo ngayon? what if kung wala kayong pambili ng plane ticket? i-utang na lang ninyo? plane ticket prices are not that cheap though.

anything in the house that could break down unexpectedly and would qualify as emergency? (like a refrigerator break down, car breakdown, house repairs due to flooding, etc ... but TV breakdown and house improvements doesn't qualify as emergencies)

you will still need an emergency fund. sounds like you need a small one nga lang, but be sure to have one.

^ It's ok - kelangan ko talaga ng opinions/ advice 

hospital bills - yup, free lahat except magpa tubal ligation  Pag pumupunta kami sa hospital, ipakita lang HMO card then i-photocopy nila then yun ok na, wala ng bayad even sa medicines. Saka, magagamit rin sya sa ibang bansa except Asian countries. Oh we work abroad so hmm ayoko umabot dito until 60yrs old kami hehe

Job loss - Pag vacation: Paid annual leave + paid airfare... pag mag resign sa work/ termination: gratuity pay (basic salary x years at company) + paid airfare. 

House - if anything breaks (plumbing etc) - landlord will shoulder it because we pay a very minimal maintenance fee; car breakdown - dito namin kelangan ng emergency fund... nun nasira car namin mabuti na lang kaka-sahod ko lang... yun ipinambayad namin 

you will still need an emergency fund - San mas ok ilagay ang emergency fund:

- BDO regular Savings account? - meron kami nito pero less than 10,000 pesos ang laman;
- BDO Time Deposit? - eto lang offered dito; wala silang BDO Fixed Income fund - wala na daw eto sabi nun agent, tinawagan ko kanina
- BPI regular savings account? - meron kami nito (joint) pero less than 15,000 pesos ang laman; hinuhulugan namin ng atleast 3,000 pesos per month. ok na ba yun?
- BPI Maxi saver? - meron na akong form pero hindi ko pa naibibigay ang pera 
- local bank? - meron nag ooffer ng 4% interest pero dapat 1 year hindi mag withdraw

 

*Your suggestions are very much needed*

Btw, eto pala yun 3 investments namin:

1. Educ plan ni child #1 - last payment sa July 2012
2. Duplex ipaparent simula March 2012 - we're still paying for the construction until Nov 2012
3. Residential lot pero after 2-3yrs pa papatayuan ng house - we're still paying for the lot until Aug 2016

Based on the above, please recommend something as regards Emergency Fund.

Thanks.