Building My Emergency Fund

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Avatar for Eirolfeam2
1 year ago

In an article that I have written before titled "Requirements to Retire Early!", the first and one of the requirements that were indicated was To Have an Emergency Savings/Fund.

I have been very vocal about my goal of achieving FIRE or Financial Independence and Retire Early. This is my ultimate financial goal in life that is why I have been working hard and smart, grinding and hustling all day and all night, and trying to maximize every opportunity that I could get in order for me to earn additional income.

If you have observed, you probably already know that I don't have any plans to be spending my whole life working in a 9-to-5 job just to provide for my needs and necessary wants in life. I'm the type of person who doesn't want to be a slave to anyone or be commanded by anyone. I want to be financially independent for me to be able to pursue the things that make me happy, and for me to have time freedom where I can spend my time and day however I want it to be.

And in my quest to achieve FIRE (Financial Independence and Retire Early), the first thing that I need to do is to build my Emergency Fund.

To those who don't know, Emergency Fund is a separate fund or savings that is worth 3-6 months and can even be up to 12 months' worth of your monthly expenses, which includes your expenses for food, water and electricity, and other bills and expenditures that you have.

The purpose of building your Emergency Fund is for you to have something to use in case you lose your job or you got fired from your work for whatever reason, or you need money because of an emergency, or when there are unexpected events such as what we experienced right now, which is the global pandemic where most people lost their jobs and stuck at home.

So how much do I need to save in order for me To Build my Emergency Fund?

My Monthly Expenses:

Food- 5,000 pesos (This is assuming that my budget for food is only around 1,250 pesos per week.)

Water and Electric Bill- 1,500 pesos

Load Allowance- 500 pesos

Other Expenses- 3,000 pesos

Total Expenses- 10,000 pesos

Since I'm still living with my parents with little responsibilities in life, these are the only expenses I have for now. I don't have to pay any apartment rent since I have my own place to stay at the moment, but it'll probably be included in the computation once I move out to a different city or province already.

So if I were to save 10 months' worth of my computed monthly expenses, I will need to save a total of 100,000 pesos.

Actually, I have already built my Emergency Fund for quite a while now even before the pandemic came. However, because of my other financial goals in life, I have decided to split my Emergency Fund into two.

And now, I only have 50,000 pesos parked in my savings account that serves as my Emergency Fund. So with this fund I already have, I still need to save 50,000 pesos more to build my Emergency Fund.

My goal is to complete building it up before my 23rd birthday this December. And since it's July already, that means I still have around 5 months to work and save up to get this amount on time. That also means that I should save at least 10,000 pesos per month if I want to achieve my goal in my desired time.

So how am I going to save this amount if I don't even have a job yet, you might ask? And that's where my online side hustles come in. Most of the money I will save will probably come from my trading profits so I should strive to make more successful trades in a day. I will also keep on writing articles and making short posts to earn some BCH that will be converted for this purpose.

Saving 10,000 pesos in a month may sound too impossible but I am determined with my goal so I will make it possible somehow. Perhaps, more grind, hustle, patience, effort, and perseverance are what I need to accomplish this goal.

Cheers to Building My Emergency Fund!

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Avatar for Eirolfeam2
1 year ago

Comments

There is a saying that he that fail to plan, plan to fail. Saving emergency fund is a vibrant idea for no one knows tomorrow. But at the same time you won't kill yourself simply because you don't have enough to save for the months. Life is full of uncertainties. Save the little you can at a time.

$ 0.01
1 year ago

That's true. While the future is uncertain, it's still better to plan it. So save some money now if you don't want to regret later on.

$ 0.00
1 year ago

True, emergency or in accounting we call it contingency fund is really a good thing to spare every time you have a money, you gotta keep such fund and it will truly save you in a difficult and convenient situation.

$ 0.01
1 year ago

That's right!

$ 0.00
1 year ago

Cheers! I do have that also where I put in my bank. I even didn't enroll it online but just have a passbook, so I wouldn't be tempted to withdraw it anytime since I know that I'm impulsive when it comes to spending.

$ 0.01
1 year ago

Aww. You should learn to control yourself when it comes to spending then so you won't get to withdraw your EF. Haha!

$ 0.00
1 year ago

Kaya naka Passbook na lang para di ko makuha agad. Panigurado na lang, ang hirap kasi magpigil.😅

$ 0.00
1 year ago

Building an emergency fund is one of the things that one should do before going further into investment.

$ 0.01
1 year ago

That's true and people should know that.

$ 0.00
1 year ago

Kering keri yan Florie basta determined ka sa goal mo. Goodluck and cheers to more hustles!

$ 0.01
1 year ago

Sana nga po kayanin. 😂

$ 0.00
1 year ago

I was amazed by this one and I'm inspired to do it also po even if I have only few income for now. This kind of method is very life saving kung may biglaan diba po. This one can be considered as a life hack that many people didn't know kaya minsan kinakapos .

$ 0.01
1 year ago

People lack financial literacy that's why they don't know about Emergency Funds. It's a must-have if you want to be in a better state with your finances.

$ 0.00
1 year ago

At a very young age, you do have that kind of plan that's good, I hope that you can make it.

$ 0.01
1 year ago

I hope so too. 😹

$ 0.00
1 year ago

I read that article too. If you are determined then it is not impossible. It is better to have some platform from where you can get money by automobile.

$ 0.01
1 year ago

That's true. Nothing is impossible if you are determined to achieve it.

$ 0.00
1 year ago

Good luck to your EF ate! May I ask kung saang bank mo ini-store yung sayo?

$ 0.01
1 year ago

Thank you. I chose BPI for my EF.

$ 0.00
1 year ago

Savings fund is really important sis since we don't know what will happen next.

$ 0.01
1 year ago

For me, magkaiba ung savings sa Emergency Fund but both are really important. Haha!

$ 0.00
1 year ago