There has been a long battle between keeping your Emergency Fund in hand and handling it to banks. I, personally keep my emergency fund with my BPI Save Up plus Insurance account. Click here to learn more about BPI Save Up plus Insurance. You can also open just a basic account for it though the risk of your withdrawing is higher specially if you opt for an ATM-based. The good thing about BPI Save Up is that I cannot withdraw my money. All I can do is transfer it to my active account which gives me more time to think again of my action. The bottom line is, you need to put in the safest place you could find.
3. Can I invest even without the emergency fund?
It is highly advisable to first secure an emergency fund before any investment, big or small. Emergency Fund is very much useful for investments on the stock market as the risk is very high. You can also use this fund if in case you want to open your small business (and even online) for you’ll have spare money to maintain your operation.
4. Emergency Fund or Pay for my Debts?
Of course there will be a big difference when it comes to either paying your debt or going for an emergency fund but for my personal view it will help better to secure your debts first so they won’t hunt you down in the future. If you are in big debts you may settle those that have higher interest and slowly pool some small amounts to start your savings. And also please note that you won’t have any other debt other than the current just to minimize the wound on your financial state.
I hope that this blog post helped you!