06/11/2025
"EF or Emergency Fund"
In my 1-on-1 financial planning meeting with my clients and friends, many of them are not aware about EF.
Kaya I agree sa survey na 'to.
As a financial consultant and insurance expert, I always teach them na "Emergency Fund" muna bago kumuha ng insurance.
NO EF, NO insurance. (pero may exemption)
"Kier, paano kapag walang EF pero gustong kumuha ng insurance?"
Ito ang mga tanong ko sa mga clients/prospects:
1. May habit of saving ba?
2. If yes, how much? If no, practice muna mag ipon regularly.
3. If the client/prospect can save let's say P5K per month, pinapahati ko ito into - for example 2K for personal savings, 1K for EF, and 2K for insurance.
So from that, 3 na agad ang na check namin sa checklists ni client/prospect.
If we talk about how much EF do we need?
- At least 3 months worth of our expenses.
Bakit?
- Para if mawalan ka ng trabaho or something happens to you that will stop you to generate income - mabubuhay ka ng 3 months na hindi mo pinoproblema ang expenses mo kasi may 3 months worth of emergency fund ka. :)
Tapos if may income ka na ulit, replenish mo lang ulit ang emergency fund mo and it's a cycle whenever mabawasan ang EF mo. :)
"Kier, bakit yung iba sabi 3X of monthly income?"
- Yes. May iba 3 months ng income kasi mas madali itong i-compute dahil mas alam natin income natin than our expenses. Hindi kasi lahat nag ttrack ng expenses. 😅
For more EF tips, message me to have 1-on-1 discussion with me. :)
Share this to your friend if may kilala kang hindi pa alam ang Emergency Fund. :)
Only two out of 10 Filipinos have emergency funds good for over three months, according to a study. https://tinyurl.com/mryrxheu
