Sunday, July 31, 2016

My Emergency Funds

Building an emergency fund is one of the fundamental steps in achieving financial freedom. It's the first lesson I've learned and the first step I did before I finally dip my toes in the world of investing.
But now that our company is in deep financial crisis and the status of the lot where our house is built is still uncertain, I realized that my emergency fund is not enough. That's the reason why I stopped making an additional investment to my mutual funds and decided to rearranged my emergency funds.

As of today, I have three major emergency funds deposited in a special savings account in Wealthbank - Housing/Inv. Fund, Health E-Fund, Family E-fund. My Personal E-fund & my two ATM cards were my transient/buffer funds.
My Health E-fund - is intended for health emergencies in our family. I actually have 22k in it but I decided to trim it down to 20k for now. I renew this special savings account every two months & it has an interest of 1.75% per annum.

My Family E-fund - is intended for any family related emergencies. It was primarily my personal fund but I decided to set it as Family E-fund. I have 30k in that fund & decided to trim it down to 20k for now.  I renew this special savings account every two months & it has an interest of 1.75% per annum.

My Housing/Inv fund - This is my new goal - I am trying to raise a certain amount here.
This actually came from my capital contribution account but it was really intended for our house but since I've been hearing negative news about the status of our lot, I need to set aside an amount that I can use in sangla tira (I'll create a separate post for this.) I also call it an investment fund because I am still optimistic about the status of our lot. If positive result happens in the future, I'll be using this fund to secure the property which I think for me is an investment too. This special savings account has 2.25% interest per annum & I renew it every three months.

My personal E-fund - this is just an ordinary savings account with an interest of 0.25% per annum and I treat it as my transient fund where some amount from my special savings account & their interest were deposited before I finally transfer it to my Housing/Inv fund. This is also where I make my regular deposits no matter how small the amount is, heheh.
(Sorry, the photos above are doesn't look good.  "Sira po kasi ang android cellphone ko", I used my low end one, heheh)

MyCash Atm in Wealthbank - was originally my renovation fund but I've already used most of my savings here for my mother's check up & the repair of our roof. I will rebuild this fund as soon as I recover financially.
My BPI Family ATM savings account - is my transient/buffer fund. I've used most of my funds here because of the delayed salary I am experiencing right now but I plan to rebuild my savings here as soon I recover financially.

There it goes - I have revealed my emergency funds. Still not a solid one but at least some of these funds helped me surpassed the financial difficulties I am experiencing right now and hopefully be prepared in the future too. In Gods' Grace I know I'll be able to recover. Basta for now, my priority goal is to finish my studies first.

Just sharing my thoughts and experiences again!
An interest of 1.75% to 2.25% in not wise but I think its appropriate for emergency funds.
How about you? What are your emergency funds?
God Bless!
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