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When the COVID-19 virus entered the country, most of those who fell ill were not ready to spend big because they don’t have an emergency fund. What is an emergency fund, and why is it important to have funding for it?
The emergency fund is the money set aside that can be used whenever it is needed. This is also called a “contingency fund” where the total amount can be a cross-over cost of three months to a year.
According to financial experts, it is important to have an emergency fund so that you do not have to worry about where to get money in the event of an unexpected event like a pandemic. It is a good idea to have funds set aside so that you do not have to worry about expenses if a family member falls ill, loses his or her job, or has a home or crop damaged due to natural disasters such as hurricanes, earthquakes, droughts, or floods.
Guide to building an emergency fund
Advice from Albert O. Quiogue, first vice president of BDO Network Bank (BDONB): Mahalagang simulan ang pag-iipon ngayon. Ang tamang pagba-budget ng pera o kita ay dapat ding matutunan. Kung nais magnegosyo, aralin munang maigi kung anong business ang papasukin.
BDONB, the community bank of BDO Unibank, wants to share the importance of saving and building an emergency fund to be prepared in times of need. It can start with having a bank account to make sure the savings are safe. The money saved grows from interest income especially if the savings are at least Php500 per month.
The process for opening an account is simple. Just prepare a valid I.D. and 100 pesos as initial deposit. Go to the nearest BDONB branch in your area and submit the requirements to have a BDONB Kabayan savings account.
For those who want to have an ATM card, just prepare Php100 and can withdraw money at BDO and BDONB ATMs nationwide and Cash Agad partner-agents.
For other information about BDONB’s products and services, visit www.bdonetworkbank.com.ph or the official facebook page https://www.facebook.com/BDONetworkBankPH.
