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If you’re already earning your own money and are
anticipating your much-awaited 13th
month pay and holiday bonus, pause and think where you will allocate those
hard-earned funds. Let’s be real, having an emergency fund might be the least
of your worries as someone who is just starting out.
But before you put that extra money towards gifts for
your family, a trip with friends, or a gadget you have been eyeing all
year—think about gifting yourself with peace of mind by starting your emergency
fund.
Metrobank’s Earnest, its financial education program,
says an emergency fund is a dedicated pool of money meant only for unexpected,
urgent situations. It's not a buffer you can use to shop during online sales.
It's not a "rainy-day" pot for treats. It's not your travel fund.
It might not be as exciting as booking a flight or
unboxing a new phone, but it's a gift your future self will thank you for
because you would not have to scramble for money for unexpected expenses.
1. Give your holiday budget a
little breathing room
Between exchange gifts, reunions, and “minsan lang
naman” purchases, holiday expenses can add up quickly.
Before the spending starts, decide how much you can
afford for celebrations and how much you can set aside. If you’re expecting a
bonus or 13th-month pay, allocating a portion to your emergency fund can give
you a head start.
No extra year-end income? You can still begin with an
amount that fits your regular budget. Starting small is better than waiting for
the perfect time.
2. Start with what you actually
spend
Your friend’s savings goal doesn’t have to be yours.
Look at your own essentials: food, transportation, rent, bills, and any regular
contributions at home.
Still living with your parents? Your share of
groceries or household expenses counts, too. Once you know your monthly
essentials, choose a first milestone you can work toward. You can gradually
build a bigger buffer as your income and responsibilities grow. You don’t have
to complete your emergency fund before Christmas.
Ideally, single persons with no dependents would have
6 to 12 months worth of their average daily expenses as emergency funds, while
those who are married or with dependents have 12 to 24 months worth of their
average living expenses.
3. Remember: “Sayang ang sale”
isn’t an emergency
A surprise medical expense or sudden loss of income is
very different from a flash sale ending at midnight. Before touching your
emergency fund, ask: Is this unexpected, urgent, and unavoidable?
Concert tickets, holiday outfits, and gadget upgrades
deserve their own budget. If you really want something, save for it separately.
That way, buying it won’t leave you struggling when a more pressing expense
comes along.
4. Make saving a payday habit
Ever checked your balance a few days after payday and
wondered where your money went? Try setting aside your emergency fund
contribution as soon as your salary arrives. Pick an amount that would be
manageable for you to deduct from your funds along with your bills and
other daily expenses, then make it part of your routine.
You can adjust the amount when necessary. The goal is
a habit you can keep going after the holiday excitement and spending settles
down.
5. Give your emergency money its
own space
Keeping everything in one account can make your
balance look like it’s all available to spend.
A separate savings account gives that money a clear
purpose while keeping it accessible when you need it. Metrobank eSavings offers
an accessible and convenient way to open and manage a savings account, giving
your emergency fund a dedicated space that you can grow and not touch when
faced with budols.
And if you eventually need to use that fund? That’s
what it’s there for. Rebuild and replenish it when you can.
Put your future self on your
holiday gift list
Enjoy the gifts and gatherings during the holidays,
but give your future self a place on your list. Before your next holiday
checkout, start setting aside some funds for unexpected needs in the future.
Ready to begin? Start building your emergency fund
with Metrobank eSavings. Download the Metrobank app and prepare 1 valid ID then
you can start your savings journey in minutes.*
*For now, Metrobank eSavings is
available for new depositors only.
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