The Confessions of a Young Man: Tips to PSP and GMs: Why Create An Emergency Fund

I learned a lot from financial planner friend who was a very good providing me sound financial advice on saving, investing and putting money for other important things that matters to one's life. He may not my double life and why I am writing this for the PSPs and GMs alike.

He gave us exercise on how to be financially sound and good in case of emergency comes a long the way citing the example of common Filipinos about emergency funds which is nil or zero. Having a buffer when time arises could cushion the impact of income loss in case major disaster, health emergency or other event or incident could happen. These are some of the simple rules I learned from him.

Rule 1. You should build a fund that could last you from 3 months to 6 months of income earned - This is principle is hard to do for hand to mouth existence but the discipline is required in this. Much of the ladies will spend it in Starbucks or Fine Dining Food from a pricey resto with a photo / selfie of it in Instagram and Facebook just to boast around with other people if this is done frequently. Well, this is true why not save the 150 pesos of that extravagant coffee for your Emergency Fund instead.

Rule 2. Delay Gratifications - buying too much of the junk and clothes and shoes could really hamper your cash flow if you are aware of basic finance in which budgeting is very important. Just like in number 1 just save the money to create an emergency fund. Avoid these financial suckers that eat away your emergency fund. Learn to live within your means.

Rule 3. Store your emergency funds in a liquid asset - The best way to have put your money is to store them in a bank. A bank is a temporary vessel where it can help you in many ways of temporarily storing your emergency funds. Banks are more secure than stashing it in a pillow or hiding it in a cookie jar. Look for a bank that does not require much fee in storing your Emergency Fund an ATM would be essential on this.

Rule 4. Never Use Credit Cards - This is used for necessary purchases but shopping for luxury items and gadgets could sap your money away for good. So follow number 1 and 2. Remember credit card is not a FREE Money hence it is borrowed money from a Credit Card company.

Rule 5. Be disciplined to Save - This is the hard part for most of us but anyone can do this by having a goal in mind and in paper where you can view it everyday before you live or go to sleep.

Rule 6. Make A Budget Plan - Alway work on something out to balance the cash flow of your household. By not buying much of the extravagance and costly things that necessarily to be needed on your everyday life.

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Personal Finance 101: 10 Tips on how to smartly spend, save and invest on your hard-earned money.

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Silent Operator Dan, is 30 something heterosexual male. A part-time blogger, adult scene observer / patron and a frustated writer of some sort although he was a former editor-in-chief of his college newspaper. He currently resides somewhere out of the realm of the city limits and dabbles in high finance and business. You can catch him at http://theconfessionsofayoungman.blogspot.com. Follow him on Twitter or Facebook.