Emergency Fund

[Annie M.]

1/4 na lang ang natira kaya kailangan mag ipon uli.

okay lang yan, sis. that's what an emergency fund is for. imagine kung wala ka nyan, magkaka-utang ka pa. i'm sure you can rebuild it again very easily.

@Annie
If you don't have any withdrawals for the current month you get one month's worth of 1%p.a. interest
If you do have even one withdrawal then you get one month's worth of 0.5%p.a. interest

thank you sis!

[sachism]

It depends on your risk appetite/level of comfortability lalo sis kung wala ka namang dependents. Ideally 6 mos talaga lalo for us who have kids. But Some have 2 month worth of EF in the bank/comservative UITF only and the rest in the more aggressive investment vehicle. Whatever gives you a peaceful sleep at night.

[happynlove]

We have the same problem sis j.adore. original plan is time deposit lang, ngayon nanghihinayang nako. Might put 60% in coop then 40% sa maxi saver para maka-1% pa rin. Kung magkaemergency man I'm sure (& hopefully) I won't really need the 100%.

[j.adore]

Thanks all!

Yes, conservative UITF yung isip ko to make sure it won't go negative.

We don't have dependents but I think 6 months should be good.

[caterpillar-girl]

I put our EF in BPI Save Up, and I availed of the free Philam life insurance. Basic insurance is 5x the average daily balance up to 2 million. Savings account lang talaga, but at least may insurance, so not totally natutulog lang. I considered putting them in UITFs pero I prefer all my UITFs na hiwalay sa savings/emergency fund.

[fionaapple]

^emergency fund namin nilagay namin sa BPI Maxi Saver.

[riandrew]

planning to put mine in BDO INSTITUTIONAL CASH RESERVE FUND. i checked the table and states there, walang Min. Initial Participation, walang Trust Fee Structure.

anyone who have put their EF in this kind of money market fund?

http://www.uitf.com.ph/daily_navpu_details.php?fund_id=135&bank_id=6#gsc.tab=0

[yumi03]

Hello sisses, I would like to ask your opinion about my plan for my Emergency Fund. I've already started and have saved nearly 3 months worth of my expenses in a savings account here where I currently live. I am also planning to open a Philippine bank account so I would have usable cash whenever I'm in the Philippines (during vacation or if an unexpected repatriation happens).

I am planning to open an account in BPI (Save UP with Insurance) since I don't have insurance yet and don't know when I can get one since I don't have any immediate plans to go home yet.

Is this a good idea or is there a better place to put my Emergency Fund in?

[ikaela]

^^Looks okay. But I don't know how easy it is to withdraw your money from that fund. I redeemed my BDO UITF in October of last year, and not only did I have to be physically present, I also had to specifically go to the branch where I opened the UITF and had to bring complete confirmation receipts with me. This isn't ideal especially in emergency situations where you might need money in the middle of the night/middle of nowhere. Compare that with BPI where you can do all transactions online and have the money withdrawable through an ATM the next banking day.

^That is a good plan. I myself have a third of my emergency fund in BPI Save-Up. Depending on how emergency-prone your lifestyle is, you can place your EF pretty much anywhere comfortable and convenient to you like:
- A safe/vault/cash box in your house (crucial, especially for those who live in typhoon/flood-prone areas where one storm can shut down all the ATMs, banks, stores, and etc. in the entire area)
- Bank savings account
- Short-term funds with no holding periods and next-day credit

If it's a sizable amount, you can break your EF further down to:
- 30/60/90-day time deposits
- Conservative and low-risk UITFs (money market and fixed income funds)

[riandrew]

thanks for your feedback. will consider a money market fund in BPI.

[jonisha]

mga sis tanong ko lang kung safe po ba na iinvest ang emergency fund sa bpi short term fund or money market fund. kasi yung 500k ko sa bpi maxi saver parang nasa 250 pesos lang yung interest nya kada buwan sobrang liit balak ko ilipat na lang sa bpi short term mukhang medyo mataas compare sa bpi maxi saver. Any suggestion mga sis. Thanks

[icedtallcoffee]

^ Parang safe naman, and madali i-transfer sa settlement account.

[happynlove]

EF mo lang yung 500k sis? Parang masyadong malaki. Besides, pag may dumating na emergency I don't think (& hopefully) magagamit mo lahat yan at once. Have you considered investing a portion in mutual fund? Maybe a portion sa medium risk then yung iba sa peso balanced then konti lang itira mo sa savings.

[jonisha]

^

nasubukan ko na sis dun sa uitf equity, pero pinull-out ko rin, mas gusto ko yung kahit medyo maliit yung interest pero stable sya.
Actually sis meron na po ako bpi short term fund, 2 months pa lang po sya. sinubukan ko lang mag open nasa 40k po sya then nung nakita ko na mas malaki yung interest nya compare sa maxi then parang gusto ko na syang ilipat na lang lahat yung sa maxi saver ko papuntang short term fund. Ano po ba mas ok mag cost averaging ako or isang deposit na 500k na lang sa bpi short term fund. Paano ko ba ito dadagdagan pede ba online. Dapat i-withdraw ko muna yung sa maxi ko then lipat sa bpi short term fund? May charges ba kapag nagdadag ka sa bpi short term fund at meron bang charges kapag pina close mo na yung maxi-saver mo?

Meron naman ako savings pa sa atm siguro yun na lang magiging emergency fund ko. Itong bpi short term fund siguro pedeng investment ko na lang kesa sa bank ko ilagay ang liit ng interest. Ano po masa-suggest nyo mga sis.

[fionaapple]

^backreading helps.

[jonisha]

hi mga sis tanong ko lang kung mga nasa magkano ang nilalagay nyong pera sa bpi short term fund 500,000 above or less than 500,000. Is it safe to put 500,000 in this investment fund?

[Evolet027]

Subscribing ...

Nag sisimula na ko sa Level 1. But I also have my insurance policy na which quarterly binabayaran ko.  Ang iniipon ko ngayon is pang kapital sa business, aside from that my separate ipon pa ko from 12-month challenge. OK na ba yun sis?

Yung Level 1 fund ko, nasa BPI savings
Yung 12-month challenge ko nasa BDO savings
Then Insurance policy worth 10K quarterly

Yung kapital sa business balak ko bawasin sa BPI savings

[jonisha]

hi mga sis tanong ko lang kung mga nasa magkano ang nilalagay nyong pera sa bpi short term fund 500,000 above or less than 500,000. Is it safe to put 500,000 on bpi short term fund?

[mebpa]

^ sis, this is emergency fund thread. do you already have an EF? sa short term fund mo ba ilalagay yun EF mo?

problem ko lang sa EF ko, minsan nagbabawas ako ng kahit 10K pambili stocks (pasaway lang). but binabalik ko den naman within the month.

[jonisha]

@mebpa

maituturing ba na emergency fund kapag nakalagay sya sa advance savings account? Yung sa ATM ko pede rin ba yun na lang yung emergency fund ko?

Then if I have extra 500K, safe ba na ilagay ko sya sa bpi short term fund?