Career & Finance

3 Envelopes of Your New Life: Emergency Fund

If you’ve been into personal financing for a while now, I’m sure you have already encountered the term “Emergency Fund.”

Emergency Fund is the money that you put aside and intend to only use for emergency situations. These emergency situations are, but not limited to, the following:

1. An accident or any medical emergency
2. Natural disasters
3. Fire
4. Anything that’s a matter of life and death
5. Losing your job

Dealing with an emergency situation does not only make your stringer as a person but will also let you experience how you should handle financial decisions in life.

Your emergency fund is your first line of defense in case something unplanned happens. If you fail to have an emergency fund, you and your loved ones will suffer all at once.

Frequently Asked Questions

1. How much should I have in my Emergency Fund?

You should have at least 3-6 months worth of your income. This is the basic fund that you need to save. If you are earning 10,000 a month, your emergency fund should be 30,000-60,000 pesos. This is to ensure that you still have enough money to continue your daily needs for the next 3-6 months.

2. Where will I put my Emergency Fund?

There has been a long debate about keeping your Emergency Fund in hand or handing it over it to the bank. I personally keep my emergency fund in my BPI Save Up plus Insurance account. Click here to learn more about BPI Save Up plus Insurance. You can open a basic account for it though the risk of your withdrawing is higher specially if you opt for an ATM-based account.

The good thing about BPI Save Up is that I cannot withdraw my money. All I can do is transfer it to my active account which gives me more time to think again of my action. The bottom line is, you need to put your emergency fund in the safest place you could find.

3. Can I invest even without the Emergency Fund?

It is highly advisable to first secure an emergency fund before any investment, big or small. Emergency Funds are very useful for investments on the stock market as the risk is very high.

4. Emergency Fund or pay for my debts?

Of course there is a big difference when it comes to either paying your debts or going for an emergency fund but personally, I believe it will be better to secure your debts first so they won’t haunt you down in the future. If you have big debts, you may settle those that have gained higher interest first and then slowly pool some money to start your savings.


The above is part of a series created by the author, Izza Glino. The series, 3 Envelopes of Your New Life, talks about 3 ‘envelopes’ which became an important part of her 2014 Financial Journey.

About the Contributor

Izza Glino is the lady behind SavingsPinay (A Financial Journey of a Common Pinay), a blog that gives financial tips and tricks for everyday living. She also owns a beauty blog called and a blog that gives free life courses to improve one’s being, A Journalism graduate from Polytechnic University of the Philippines, Izza believes that age should be a person’s greatest advantage. You are never to young or too old to dream.

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

See all of Izza Glino's posts →

Photo from

Inspired? Give Your Thoughts!

Name and email are required fields. Your email address will not be published.
By posting a comment, you agree to the Terms & Conditions of the site.