Career & Finance

Saving Up For Rainy Days

Several years ago, when I was still living with my aunt who was very sickly at that time, her frequent trips to the hospital put a tremendous toll in our finances,– most especially when she died seven years ago. At that time, her children took care of everything even though they were also struggling with their finances. That’s when I realized that I should have a job and go full time and save up little by little.

What I did (and still usually do) was put money in my savings account, say like 3-4k every payday. I thought of it as a retirement fund and with that, I was forced to save every payday. When I was able to save enough money already, I purchase a variable unit linked-insurance or VUL with a health insurance component from Sunlife. A VUL is also a life insurance, however its main difference from the traditional life insurance is that it has a cash value on the onset of the policy activation and it is participating according to the market performance. This means that if the market is good, the cash value goes up; if the market is down, the cash value goes down. It has a sub account, sort of a mini mutual fund within the insurance. So it serves not only as an insurance, but also an investment. And its riders have the health insurance component in it wherein certain serious illnesses are covered depending on the provisions of the policy.

I believe that it is really good to save up for financial and personal emergencies so that when unfortunate events come, I can have something to spend on. It really pays to be ready because we’ll never know when personal emergencies can happen.

About the Contributor

Cecil Umali is a personal finance enthusiast who loves attending personal finance seminars and reading personal finance articles. I also work in a BPO/Call Center as Senior Process Associate in Pasig City.

This contributor is a customer of The Coffee Bean & Tea Leaf®.

See all of Cecil Umali's posts →

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