How to Build an Emergency Fund for Your New House

Posted by Kyra Rodriguez on November 27th, 2019

Have you decided on which location to live in? Whether you are going to Metro Manila or Nueva Ecija, Pagibig’s housing loan will support you in building an emergency fund for your home. While putting your emergency fund in a high-yield savings account where you can easily withdraw and transfer funds, PagIbig’s multi-purpose house loan remains the most preferred option.

Set a Monthly Savings Goal

When saving for rainy day funds, set a low target that can be reached in a short amount of time. With this, you will be able to stick by the goal and avoid starving yourself financially. In time, you will learn how to save more than what you have set.

Breakdown Potential Savings

Your potential savings will come from a portion of your monthly expenses. Cutting down monthly expenses is arguably the biggest challenge for personal financing. Particularly, figuring out ways to spend less money will sometimes force you to choose between two necessities.

Look for Money Leaks in the Budget

As the saying goes, “every penny counts.” Do you order plenty of food in the restaurant yet end up being unable to consume everything? You might not feel it, but those are leaks in the budget. Do you leave lights on even though nobody is using it? This is another leak that you never notice because it is not second nature to you checking the breakdown of the electricity bill.

Collect Spare Change

The idea might be a cliché or perhaps something that may have done before but did not work, but collecting spare change can accumulate huge amounts of cash in time. Have your entire family empty their pockets and wallets for change at the end of the day. You can save it traditionally by putting it in a jar or a junior savings account that does not require any maintaining balance. This technique of saving up money is just a supplementary effort. Avoid depending or expecting too much from it.

Key Takeaway

According to general knowledge, emergencies and savings funds are all the same. They are both used for health, financial and property safety. The key difference between the two funds is that emergency money can be maintained for security purposes while savings are to obtain financial freedom.

Breakdown Potential Savings
Breakdown Potential Savings
As the saying goes, “every penny counts.” Do you order plenty of food in the restaurant yet end up being unable to consume everything? You might not feel it, but those are leaks in the budget. Do you leave lights on even though nobody is using it? This is another leak that you never notice because it is not second nature to you checking the breakdown of the electricity bill.

Like it? Share it!


Kyra Rodriguez

About the Author

Kyra Rodriguez
Joined: September 23rd, 2019
Articles Posted: 11

More by this author