Sunday, November 14, 2010

The 3 months cash reserve for Emergency

Before we begin to invest, many financial advisers plead, ask and urge us to have a 3 months cash reserve fund for emergency. It is a very wise advise because if we have none we will be force to use our credit card or even worse withdraw our retirement savings to pay for hospital bills, funeral or home repairs.

It is therefore a priority for a Filipino Investor to build a 3 months cash of living expenses as an emergency fund that you can withdraw anytime. This can be in a savings account, time deposit or money market fund.

The amount to be saved differs for everybody but the rule of thumb is how much you need to survive in a month and then multiply it by three.

Be careful though in determining the amount by distinguishing what are your wants and what are your needs. You will be amazed how easy it is easy to build a 3 months cash reserve.

My best wishes, always.

next topic: Pag-IBIG Fund as Retirement Savings


  1. Anonymous4:20 AM

    Anna C. Vergara BSBA-4FM

  2. Anonymous5:27 AM

    Angela Gargantos BSBA-2B