Author Topic: Where do you keep your emergency fund? (Read 5787 times)

rhadamantus · « **on:** Nov 28, 2011, 11:18 AM »

i have about six month's worth of living expenses as my emergency fund (i am currently aiming on increasing it to six month's worth of income instead) scattered across time deposits (and a month's worth in my savings account) with several banks.

i would like to know how other people manage theirs. i am continuously looking for better ways to handle this fund.

samsam · « **Reply #1 on:** Nov 28, 2011, 11:23 AM »

i place ours sa bpi maxi-savers account. hindi namin sya nagagalaw so 2.375% p.a. ang rate nya. readily available pa in case of emergency.

switchiz · « **Reply #2 on:** Nov 28, 2011, 11:24 AM »

I keep it in savings deposits. And I have only 1-2 months worth of living expenses.... I figure, I could borrow from my parents if ever I will have money problems... only child lang kasi ako...

Hindi syempre advisable ung ginagawa ko... depende na po sa situation ninyo iyan.

GoodSteward · « **Reply #3 on:** Nov 28, 2011, 12:23 PM »

Me naman sa BDO Money Market Fund and Bond fund nakapark.

Kung ang emergency fund ninyo ay 100,000, then Ok and pinka conservative for me BDO Money market fund. YTD niya is 3.34% NET.

Samsam, please check kung net yun rate? kasi pagkaalam ko less 20 % pa which will give you only 1.9%

Ang disadvantage lang sa BDO Market fund is kung kelangan mo lang as emergency expense at a particular time is 20,000, then no partial termination...out mo dapat lahat....Pero naggain na naman siya....

A good combo plan is ilagay sa bpi maxi-saver pag less than 100,000....pag umabot na ng 100k, ilipat sa BDO Money market fund...and vice versa....

Oh wait, @samsam, you mean pagginalaw nyo hindi na siya ganung rate? So that defies the purpose of emergency fund?

rhadamantus · « **Reply #4 on:** Nov 28, 2011, 12:31 PM »

i have not considered money market fund. thanks for the tip, GS. i am going to look it up and see if its worth transferring some funds into that. it is my choice to put my EF in low-risk financial instruments so i am not expecting a high return but a considerable higher rate than TD at an immaterial incremental risk would be nice!

Quote from: GoodSteward on Nov 28, 2011, 12:23 PM

Me naman sa BDO Money Market Fund and Bond fund nakapark.

Kung ang emergency fund ninyo ay 100,000, then Ok and pinka conservative for me BDO Money market fund. YTD niya is 3.34% NET.

Samsam, please check kung net yun rate? kasi pagkaalam ko less 20 % pa which will give you only 1.9%

Ang disadvantage lang sa BDO Market fund is kung kelangan mo lang as emergency expense at a particular time is 20,000, then no partial termination...out mo dapat lahat....Pero naggain na naman siya....

A good combo plan is ilagay sa bpi maxi-saver pag less than 100,000....pag umabot na ng 100k, ilipat sa BDO Money market fund...and vice versa....

Oh wait, @samsam, you mean pagginalaw nyo hindi na siya ganung rate? So that defies the purpose of emergency fund?

aris1925 · « **Reply #5 on:** Nov 28, 2011, 05:19 PM »

haha iniipit kung saan saan may kaparehas pla ako nakakalimutan na kung minsan...

ako po nilalagay ko sa coop medyo mas malaki konti interest kesa sa bank eh

kiko2007 · « **Reply #6 on:** Nov 28, 2011, 05:46 PM »

ikeep mine sa coop. good for 3-4 months. then i also have 2 months worth sa gold. bought it back in 2009. wasnt planning to make it emergency fund back then but now, yun ang pagkukunan ko in case something happens. i know not advisable kc volatile ang gold but its working out so far. i can readily sell it in case the price drops at a certain amount and then transfer it sa savings d2 w/ 2.5% int.

i did it para protection sa inflation but not fully exposed and emergency fund ko sa wipeout in case of crashes.

rhadamantus · « **Reply #7 on:** Nov 28, 2011, 05:53 PM »

i do feel i could put it somewhere where it can earn more than TD rate but the nature of the fund (e.g. emergency) really limits the options for me- i would think it is advisable to put an EF with capital preservation as your goal here and where it can easily be withdrawn when you need to.

i have a follow up question here, too. it looks like some people actually have more than 6 months worth of EF. i have never looked beyond six months- i would be interested to find out why others feel they need more than 6 months for their EF.

ferrariEverest · « **Reply #8 on:** Nov 28, 2011, 06:14 PM »

@Sir aris & Sir kiko,
magkano interes sa coop nyo? magkano ang investment?salamat!

Jquiogue · « **Reply #9 on:** Nov 28, 2011, 07:00 PM »

I put it in BDO. Pero i've read a book wherein they suggest you put it in Money Market funds. Problem is, I don't have time to explore the types of Money Markets in the Philippines so far.

aris1925 · « **Reply #10 on:** Nov 28, 2011, 07:58 PM »

Quote from: ferrariEverest on Nov 28, 2011, 06:14 PM

@Sir aris & Sir kiko,
magkano interes sa coop nyo? magkano ang investment?salamat!

4% to 6% lang po time deposit depending sa amount and term...pero pag niwithdraw ng ala pa sa maturity date icompute nila as savings account ung interest earned which is 3% sir..

kiko2007 · « **Reply #11 on:** Nov 29, 2011, 11:34 AM »

yung sakin kc depende e. 3% on months na me pggagamitan. minsan nakatambay lng yung funds dun. so far it grew arnd 30% of the total in 3 yrs since i start. note that when i started, hindi lump sum ang hinulog ko.

min investment b4 was 100k.

meron dw ang think rich pinoy na ganitong syle din but malaki ang capital. arnd 1million ata ang minimum. too much 4 me though.

Bp22estafa · « **Reply #12 on:** Nov 29, 2011, 04:45 PM »

some of you brought up investing in a coop. saan ko makikita yang mga yan? which gov't agency oversees their operations & insured rin ba sila in case they folded? how about their interest rates?

palailai · « **Reply #13 on:** Nov 29, 2011, 04:53 PM »

I'm a member of First Community Cooperative (www.ficco.org) and Tagum Cooperative (www.tagumcoop.org)...

kiko2007 · « **Reply #14 on:** Nov 30, 2011, 01:15 AM »

not sure if they are insured. i dont think they are, though. they do have annual reports so you can check their performance and how they move money. requirement ata yung annual report for every coop.
i think CDA yung mayhawak sa mga coop.