Are You Ready for These 6 Financial Emergencies?

There are three things Filipinos worry about each day: the unpredictable weather, the terrible traffic, and their money matters, with the latter being amplified in times of unexpected emergencies. What if you suddenly got laid off or your car broke down and needed immediate replacement parts?

Building a “just in case” fund will help cover for unforeseen crises without hurting your financial standing. Here are 6 of life’s twists and turns to prepare for, so you stay financially secure while you weather each storm.

  1. Job loss

People can lose their jobs for various reasons other than getting fired (e.g., retrenchment, poor relationship with managers, company closure). Losing a job is a large-scale emergency everyone should prepare for. If your department in the company is standing on thin ice and it’s your only source of income and health insurance, then that makes it all the more vital to plan accordingly.

What to do: Depending on your financial responsibilities, it’s best to save at least 3 to 8 months’ pay to ensure you’ll be capable of covering your fixed expenses (i.e., rent, mortgage payments, insurance, etc.), groceries, and other unanticipated costs.

Having enough saved can also help you cover for job hunting costs like transportation allowance and medical exams.

  1. Sickness and health concerns

How many cases have you heard of people not taking a health insurance policy because they don’t find it necessary at the moment? Sure, you can be completely healthy today, but what about tomorrow or three months from now?

Medical emergencies and accidents happen without warning, which can put you through serious financial burden if you don’t have a reliable backup, like health insurance or a sizeable emergency fund.

What to do: Find out how much your health insurance can cover so you can confidently take care of expected medical expenses and plan for the unexpected. These costs can add up before you know it. If in any case your health insurance provider doesn’t cover all the hospital expenses, having a contingency plan to subsidize the bill can be helpful.

  1. Natural disasters

The Philippines has soldiered through tough typhoons and disasters. Such destruction can end up with great loss, which can take you years to recover from. Paying for your mortgage or rent already takes a huge chunk from your budget, so it’s hard to see it go to waste when a disaster strikes.

What to do: Prepare a financial first aid kit ahead of natural disasters. Get insurance coverage before you even need it. This can be a graceful fallback to pay for the possessions you lost as it ensures everything you worked hard for won’t be rendered worthless. It will be calculated based on replacement cost less depreciation.

  1. Unexpected home repairs

Owning a home or renting comes with a few hiccups. When you see something that needs repairing, leaving it be until it gets worse isn’t the best strategy. Doing so can raise the costs through the roof and set you back more than it should have.

While there’s no way you can tell when exactly your water pipe will burst or your refrigerator will break, it’s always wise to plan for these unpredictable emergency repairs, replacements, or improvements.

What to do: It’s ideal to get covered by homeowner’s or renter’s insurance from the get-go. Have an allocated fund for home repairs in case your insurance policy doesn’t cover it, and especially if you don’t have any.

  1. Unexpected travels

This doesn’t refer to your impulsive airfare bookings or spontaneous road trip to a beach. Unexpected travel expenses apply in emergency cases; like when a family member or relative living in a remote location suddenly becomes ill or passes away, and you have to go there immediately.

What to do: This is one of the primary reasons why you need an emergency fund. You’ll never know when tragedies like these hit, so having a fund where you can access cash fast can be beneficial.

  1. Pet emergencies

If you have a furry friend, then you have an understanding that they get sick too. And you probably know that medical expenses and prescriptions for pets can drill a massive hole in your pocket.

What to do: Apart from having an emergency fund as a fallback, you can also check on pet insurance policies. Yes, these exist. This may seem like an unnecessary cost, but seeing how much surgeries and emergency procedures can amount to will convince you otherwise.

Planning your best course of action and socking away a considerable fund for these types of financial emergencies can help soften the blow and prepare you financially.

Start building and adding whatever amount you can to your emergency fund. Having a safety net can put you at ease when life surprises you with these circumstances. If you don’t have one yet but need immediate money, you can loan cash in minutes in the Philippines.

Cashalo helps Filipinos borrow fast and affordable loans with only a few requirements. It’s the online solution to help you get your finances in order and cover for your unexpected financial emergencies.