The Groundwork: Building Your Emergency Fund

Let’s be real. Most people don’t have an emergency fund. We live with a “come what may” mindset. The problem is, when trouble comes, it usually comes with a bill attached.

Here’s the painful truth: one hospital trip, one job layoff, one broken appliance, and suddenly your wallet is in the ICU. Instead of savings, we resort to borrowing. And borrowing? It comes with a loyal best friend, INTEREST. The kind of friend who overstays in your house and never leaves.

Now imagine this. You’ve worked hard for years, you’re supporting your family, then suddenly you lose your job. With no savings, how long before you start borrowing left and right? Stress, worry, and sleepless nights arrive faster than your Meralco bill.

That’s why the emergency fund is step one. Not investments, not business, not even insurance. Without an emergency fund, one crisis can erase years of hard work.

So how do you start? It’s simple:

• Aim for three to six months of your monthly expenses.

• If that feels impossible, break it down. Start with ₱1,000, then ₱5,000, then ₱10,000. Small steps still count.

• Keep it in a separate account, away from your daily spending. If not, it will magically turn into your “sale fund” or “food delivery fund.”

And please, don’t wait until disaster strikes to build it. That’s like buying an umbrella after it’s already raining. Too late.

So let me ask you: if an emergency hits tomorrow, are you ready? If your answer is “not yet,” then today is the best day to start.

Want more practical money tips you can apply right away? Subscribe to my YouTube channel https://www.youtube.com/@chinkpositive. Let’s build your financial safety net together.