In my previous blog First Step: 8 Ways to Invest in Yourself I guided everyone on their first step in attaining their career goals.

1.  Study and get a degree.
2. Go for seminars!
3. Look for a training that can give you certificates.
4. Learn new skill!
5. Establish professional connection in your industry.
6. Build your profile and let them know your presence.
7. Do things other than your usual work.
8. Challenge yourself on the things that you’re scared of doing.

Soon after, I posted Second Step: 5 simple steps to prepare your emergency fund! for them to know the importance of having their emergency fund ones they achieve the career goals that they’re aiming.

1. Set your emergency fund goal.
2. Make a Budget.
3. Provide an account that will be entirely only for emergency purposes.
4. Record your every cash-in and cash-out.
5. Stick to your plan!

Now this blog is to share you on how I managed to saved P60,000 for my emergency fund. This is only a guide for everyone to have an idea on how they can achieve it even with the limited salary that they have right now.

I’d mentioned repeatedly that in saving, the first priority that one should have is their Emergency Fund. It will not only help you in many ways but it will also save you if any emergency situations that may happen.

We all know that we usually tend to save not because of the things that we need but because of the things that we wanted. It’s a fact that we are more motivated to save for something that we’re dreaming of than to save for other purposes.

Actually I was doing the same thing before and it was only lately I realized the importance of having Emergency Fund. I think that this fund is the initial step for everyone before taking any investment, business and other financial ventures.

It will give you a sense of confidence and security whatever path you’ll choose in your life!

Now to start everything, I’ll show you first my financial goals that I’d stated in my blog My 2021 Goals.

As you can see, for me to make sure that I achieved every financial goals I planned in this year, I made a guidelines that I strictly needs to follow. I also calculated the monthly savings I need to have on each funds and a tracker of it every month in my journal so I can somehow see my own progress.

The P60,000 amount for my emergency fund that I came up with is based on my six months average expenses. I’d been pretty transparent that I lost my job due to the pandemic and was stuck for six months without any salary.

That’s the reason why I decided to have a six month basis for my emergency fund.

In calculating my emergency fund, I simply multiply the total number of expenses per month in the number of months you want to cover.

Once you already established your target amount for your emergency fund, you can now easily start to save .

Now the question is how I was able to save within that three months?

If you’ll think right away, the first thing that will come’s to your mind is I was able save it by means of saving P20,000 for three consecutive months, but that’s not what happen actually.

Let’s go back to my financial goals and we will carefully check the details stated on it.

As you can see, before I started saving for this year, I have an existing balance of P39,000 in my account. That made it easy for me to reach that goal for three months.

Now if it’s not the case, I made a sample computation for whoever wanted to achieve the same goal for their emergency fund.

I also put three options where they can choose from according to the amount that they can save.

Just because I decided to have a P60,000 target amount of Emergency Fund, it doesn’t mean I’ll stick to it. If I can still manage to save more for it, I’ll surely do it. Since I wanted to strengthen my security fund, until now I’m still saving for it even I already reach my target.

As of today February 23, 2021, I had achieved an amount of P100,000 entirely for my Emergency Fund!

Now the purpose of this blog is for everyone to be inspired to do the same. The more you feel secured, the more you’ll feel comfortable.

Like what I’d been repeatedly mentioning in my previous blogs regarding financials, I’ll still point out the importance of having emergency fund.

Now, here are my three simple tips for you to have one as well!

1. Take it as your first priority!
2. Be strong enough to secure it and use it only for EMERGENCY PURPOSES!
3. Learn to SAY NO! Just because you have the means, it doesn’t mean you can lend it any time.

People with the right mindset will think the same way and will not feel any negative thing out of this. This is only the initial phase and the start of your financial freedom.

Others will surely think that I was able to achieved it by means of the salary that I have right now. Actually I may not mentioned my salary but for the existing savings and expenses I have right now, managing my salary is really hard.

Here are some tips how I manage my salary even it’s limited.

1. Practice the INCOME – SAVINGS = EXPENSES formula.
2. Don’t pool around your money in just one account. My economics teacher once mentioned that the maximum amount you can keep your money in a bank is P500,000, since it is the usual maximum amount that are insured by the banks. So if you have more than the stated amount, it’s better to have it in different bank accounts.
3. STICK TO YOUR EXPENSES! For me the maximum amount I can spend every month is P4000. Even I had my salary increase I still stick to this amount. Actually if you’d practicing to live by the budget, you’ll easily get used to it.

Look, regardless of the amount of your salary right now as long as you can save, DO IT!

Like as this saying goes, your income doesn’t define your wealth but your savings will! So don’t be discourage if you think your salary is less. DETERMINATION IS THE KEY!

500 X 12 (1 YEAR) = P6,000

1000 X 12 (1 YEAR) = P12,000

1500 X 12 (1 YEAR) = P18,000

2000 X 12 (1 YEAR)= P24,000

SUMMARY

As we grow up, our responsibility becomes bigger. The more we become mature, the more we think of the important things that we need to consider in our life.

A coffee a day became way better than a night out,

Watching movies at home are considered as date than literally going out,

Checking emails became the first thing we’ll do every start of the day

and

Having a day off made us more excited than any other day.

If you compare your ten year old self to your current self right now, for sure a lot of things had changed. Look back and try to think the time that you spent growing up. Now you realized you can’t go back in time anymore so as you plan your day right now, make it sure that it will be worth it.

“Do something now that will make your future self thank you.”

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