How to Build an Emergency Fund in the Philippines

Paying attention to your health has never been more important in recent years. Because of the pandemic, more and more Filipinos have started to take care of their well-being and become more conscious about their health.

Part of this transformation is the realization that the cost of healthcare here in the Philippines is not cheap, and the cost of medical expenses continues to rise every year. This makes learning how to build an emergency fund in the Philippines much more essential. You need to have a backup plan when faced with a medical emergency if you want to avoid having to deal with financial distress.

You might want to learn how to build an emergency fund fast, so you can save yourself from any financial trouble. However, achieving that is not so easy. After all, you can't immediately set aside a huge chunk of money and call it your emergency fund.

To make your saving journey more pleasant, here are some tips to help you build an emergency health fund:

When you're beginning to build your emergency health fund, you need to determine how much of your income can be set aside every time. You need to consider your fixed and variable expenses before deciding on an amount so you can cover your daily needs.

Once you have the amount, you need to stick to it. This means that no matter how tempting it is to spend money on something else, you must resist that temptation. You should do this until your emergency fund equals at least six months' worth of your salary.

It might take some time to completely build your emergency health fund, especially when you decide to save only a small amount from your salary every time. You might even become discouraged because of the slow progress of your emergency fund building. However, you need to be patient as this is for your own good and financial security.

If you're wondering where to put your emergency fund, you can opt to keep it in a bank account. This way, you won't be tempted to spend the money elsewhere. Also, if your money is in a deposit account, you can rest easy knowing that it is insured by the Philippine Deposit Insurance Corporation.

The most ideal place to start learning how to build your emergency health fund in the Philippines is when you're "financially clean." This means that you don't have any debts or other financial problems that may stop you from reaching your goal.

However, this is not always the case for most people. You might have some outstanding debts that you need to get rid of first before you can think about setting up an emergency fund.

To do this, you should use part of your income to pay your debts. You should focus on the bigger ones or those with high-interest rates first, and then move onto the smaller debts later on.

Since you will be building your emergency fund at the same time, you might have to be stricter with your budget. This might mean letting go of some luxuries you once enjoyed in order to have more money to pay your debts.

Once you're debt-free, you can focus more of your financial resources on building your emergency health fund. In time, you should be able to have a decent amount of savings and more leeway to enjoy the luxuries you gave up.

Reaching the desired amount for your emergency fund does not mean you should stop saving. Remember that it's always better to have more money in case of emergencies because you'll be able to enjoy more financial security.

Continuing to save above your goal will also benefit you in the future. Since medical expenses continue to grow, you can be confident that you will be covered should an emergency occur.

Your emergency health fund is meant to be used in case you need to pay for expensive medical treatments or procedures. It can also help if you lose your job and need to cover your medical expenses until you find a new one.

However, if you use the money from your emergency health fund, you should replenish it as soon as possible. If not, you might find yourself empty-handed once another emergency occurs.

You can rebuild your emergency fund the same way you first saved for it. Even though it might be discouraging to go back to square one, you need to save little by little again until you reach the amount you had before the health emergency occurred.

Another way to have peace of mind when faced with a health emergency is to invest in  medical insurance plans. Having a health insurance plan will cover most, if not all your medical expenses. This allows you to use your emergency fund for other purposes or save them for future medical emergencies.

It's important to find a health insurance plan that best suits your needs and lifestyle. You can research different plans to find one that will cover the most important medical treatments and procedures.

You can also look for a  life insurance plan in the Philippines that comes with health protection. This way, you can ensure that you and your family will have financial security if ever a medical emergency occurs.

Building an emergency health fund is one of the best ways to be prepared for any medical emergency. By having enough money set aside, you can rest easy knowing that you have the financial resources to pay for medical treatments or procedures.

With these tips to build an emergency health fund, you can be sure that you have enough money set aside to cover any unexpected medical emergency. So, start building your emergency health fund today and enjoy the peace of mind it brings!