Why Now is the Perfect Time to Start Building Your Emergency Savings

With the recent typhoons ravaging the country—six typhoons in just one month—it’s hard to ignore the need for better preparation. While Cebu has been relatively safe, we’ll never know when the next “Odette” might hit, and it’s better to be safe than sorry. Emergency savings, often overlooked in the face of immediate expenses, are crucial to weathering unforeseen circumstances, whether natural disasters, personal financial crises, or other emergencies that need to be dealt with immediately.

A Safety Net for the Unpredictable

Being ready for anything doesn’t just offer peace of mind as it also ensures stability during challenging times. Emergencies, by nature, are unexpected, and without a financial cushion, even minor disruptions can spiral into major setbacks. Don’t be mistaken, though, as this readiness isn’t just about big disasters–it also covers other matters such as preparing for car repairs, medical bills, or sudden unemployment.

But let’s be honest: many of us are living payday to payday, with barely enough to cover essentials, let alone set aside savings. The idea of building an emergency fund might seem like a luxury, but it doesn’t have to be an all-or-nothing approach. Start small. And the best opportunity for you to do so is right about…
Now. Here’s why.

Bonuses: Your Opportunity to Start

Fortunately, the holiday season is approaching, and in the Philippines, that means bonuses and 13th-month pay. This influx of cash presents a unique opportunity to start building your emergency fund. Allocating just a small portion of your bonus towards savings can be the first step toward financial security. For example, setting aside even 10% of your bonus can make a significant difference.

The key here is consistency. Once you start, keep the momentum going. I know that while many of us live payday to payday, we also live like a one-day millionaire once we withdraw our salaries from the ATM. Instead of going all out every 15th and 30th, why not allocate some instead of dining out at a fancy restaurant that won’t go anywhere? Instead of dining out every payday, you can make that every other payday.

The habit of saving, no matter how small the amount, will accumulate over time and provide the cushion you need when life throws the unexpected your way.

Building an emergency fund doesn’t have to feel like an impossible task. The upcoming holiday season provides the perfect chance to kickstart this critical financial step. By using your bonuses wisely, you’re not just preparing for tomorrow—you’re building a safety net that ensures your long-term stability.

The very best time to start saving was yesterday. The next best time is now. (GFB)