It is always a good thing to prepare for unforeseen circumstances. Expect the unexpected, they say, and you should definitely do that, especially as we live in a country commonly visited by storms and typhoons, which is only fitting that you should have a few amounts ready for the inevitable. In such case, you may want to set aside more than the usual amount, perhaps because you predict that the upcoming storms are larger than those which already came before. Or you predict that it may cause more damage, cause more people to be injured, and may even result in a diminished supply of food and water. The scary possibilities are endless at this point. You wouldn’t have to worry though, as we prepared 5 ways that would enable you to grow your emergency fund:
1. Determine how much fund you’ll need.
Set a specific goal. How much are you willing to save for a full-pledged emergency fund? Yes, it’s only natural for your goal to be based off income and expenses; however, always remember that a general rule of thumb is to save enough to cover four to seven months’ worth of expenses. You never long how long you’ll need to stretch on during the typhoon or hurricane, and having a lack of funds would make it difficult to survive during those trying times.
2. Keep your fund in a well-secured place.
It should be easily accessible, but not so easily accessible that you’ll be tempted to make withdrawals for everyday spending. Online banks are good locations for your emergency savings account because you can’t just walk into the bank and withdraw your cash. Consider keeping emergency funds in a combination of locations, including an online savings account, money market account and short-term CDs.
3. Treat it like a bill.
Since you’re paying monthly for water and electricity, why not consider your savings as a monthly routine as well. Establish and implement a monthly goal and make it part of your budget. Set up an automatic monthly transfer, just as you would with the electric bill or cable TV subscription, to ensure the money is saved each month.
4. Use it ONLY for emergencies.
We cannot emphasize enough the importance of self-control. Yes, it’s tempting to buy that new cellphone or flat screen TV, but think about it, even for a second, these things would be deemed useless once the power runs out due to an electric post getting thrown down by a hurricane, leaving you in a scramble to survive. Supplies and sanitary products would be more valuable at this point, and you wouldn’t want to be left in the dark with a low bat expensive phone and powerless flat.
5.Make it very realistic and natural.
Set your expectations at a realistic level. Don’t be afraid to start with a small amount of savings each month, but try to increase it whenever possible. Open a savings account and start building your emergency fund. Save whatever you can and you’ll be surprised at how much you had already saved in a month’s time.
When it comes to emergencies, you can never be too sure, so you must always be prepared. Property damage is a heavy burden to carry, but much heavier is it to carry injuries and its related expenses. As an employee, you would also be absent from work due to the injuries, hence your need to recover while missing many paid days of work. Worry no more, as here at Cebuana Lhuillier, we offer the EmployeeCARE, a Group Personal Accident Insurance specially designed for employees. It covers Accidental Death, Disablement & Dismemberment (ADD&D), Accidental Medical Cash Aid, Burial Benefit (Accident/Sickness), Unprovoked Murder & Assault (UMA), Motorcycling and Personal Liability. So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now to inquire – we assure a fast, easy and secure transaction.