I already have an Emergency Fund, Argel
It means that you already have at least three to six months’ worth of your expenses saved somewhere you can have immediate access to.
However, a recent banking glitch here in the Philippines triggered a legitimate concern for people (Like me!) who has their emergency funds kept inside an ATM savings account.
So, my questions now is…
#ArgelAsks “What if you suddenly lose ATM or internet access to your savings account?“
We can never tell when these kinds of events happen. What if it happens at a time that we need to withdraw from our emergency fund?
Minutes before my live interview, I was talking to my friend, Titus, who works for DZMM. He explained to me that they were receiving a lot of calls from affected depositors who needed to withdraw money from their accounts but was not able to because of the “glitch” that happened.
How do we protect ourselves from these kinds of problems in the future?
I can think of two practical ways.
Keep a portion of your safety/emergency fund in CASH.
- I would recommend keeping at least one month of your safety/emergency fund to be kept somewhere accessible and safe inside your home. You can put it in a locked drawer, in a cash box, or a vault.
Maintain a second savings account in a different bank.
- They say don’t put all your eggs in one basket. It would be wise to spread out your safety/emergency fund to two banks. Just in case one of your banks experience a sudden glitch, you still have another bank that you can access in case the glitch coincides with a financial emergency.
Don’t worry, your bank should be liable for any losses to your account if it’s an internal systems problem.
Make sure to check your balances from time to time and to keep your latest withdrawal slip.
Just in case you missed my live interview at DZMM Teleradyo, I recorded my portion via FB live:
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To our success in all areas of life,
Argel Tiburcio, CIS, RFP Graduate Member
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