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Monday, May 16, 2016

If I lost my Job today can i celebrate within the first three months without any debt?




If I lost my job today can I celebrate within the first three months without any debt?
Written by: Christopher Torralba ( beggar )

Work is a huge blessing from God, everything that we have normally came from our job through the salaries that we receive.  
so that's why having a job should be take care of as long you may have it but the problem is this,

 What will you do if you lost your job today without any savings to back you up ?

Have you try to ask yourself what if today I lost my job? as in today!
how can I produce for my daily expenses such as food, water, electricity and other daily expenses
not including if you have your children for their daily needs such as milk , diapers or if they are grown up how about  their education?

I am currently working as a seafarer on tanker vessels and I am shocked that I am working around seven  years as an OFW but I never felt about saving in my emergency such as when I lost my job right away, since the first time I receive money from my parents I found some happiness in saving money through the years that past by and now I ask myself,
how can I survive for my daily lifestyle if my cost of living is  20, 30, or 50 thousand pesos per month and some of them are very generous that they actually have 100,000 thousand pesos or more for their cost of living.
so I ask myself it is good to be true if ever I lost my job today I cannot survive for the amount of money that I have while I am applying for a new job at sea because there is transition that needs to take its place so due to urgent desire to plan for it the most basic things that I access is my common sense which is I need to save for any case of emergency!

But what kind of savings? and how much?

that is the time that I made my research through internet and social media and I am lucky that It is simply they are suggesting to build your emergency fund,
What? say it again? yes! " EMERGENCY FUND "

So what is Emergency Fund?

Emergency Fund is a savings that you can save it in any safe place such as bank and having an immediate access but not easy access so you might not temp to take your emergency fund when there are some stuff that allures your mind when they are trying to temp you such as sale madness in huge shopping malls.

How much emergency fund do I need to save?

Base on my mentors through live seminars and in social media they are the financial advocate one
they suggest emergency fund amount is about a year or a half if your are working in land base you may prepare around 6 months but my mentor said if you are an OFW much better to prepare at least a 1 year or 12 months in exact.

Why 6 to 12 months?

In this amount if you are an OFW and suddenly you lost your job in a moment that you never expect or the company gave you a generous vacation such as 8- 10 months, you can apply for a new job but applying for a new job takes time and money, don't forget  that you need to eat, drink and live everyday so if you don't have any emergency fund or back up fund to back you up what is the first thing that comes in your mind? well I just simply  barrow money from lenders such as 5/6 or have a loan in SSS  ( social security system ) or any means to have an access for my daily needs specially if you are a family man
but why you need to borrow money from these lenders and likewise they will take advantage of its profit? much better why you don't plan for your own emergency fund while you are earning right now and stay away for a moment from the stuff that not necessary and specially if they are non earning asset I did not say don't buy the stuff that you need or what you want but this is my question what is important  to you right now?  the stuff that will not help you in financial crisis or building your emergency fund for you to have a confidence through the time of bad weather?
building emergency fund is not easy but it can be doable! if you know what is the meaning discipline in the Webster dictionary.

Here are some suggestions that you may appreciate to follow:

1. At the end of the month or if it's your payday set aside immediately  for your emergency fund so the question is how much? well it depends on you if you like to build it as soon as possible you can set aside a large amount but if you can't due too some urgent priorities you can save small amount  but consistently.

2. You can remove right away some unnecessary expenses such as soft drinks, cigarettes, excessive junk food or buying stuff that you don't need at all in this way your monthly expenses for these stuff will be converted to your emergency fund that can help you in financial crisis that anyone can encounter any moment of time.

3. When you start building your back up fund you may put it in the bank much better in passbook rather than an ATM card to avoid easy access, but it can be withdraw any moment of financial emergency.

4. One of the main purpose of this emergency fund is to provide for your daily needs if you lost your job  at any moment of time or most financial advocate  said it is your income replacement while you are applying for a new job or it can be used for the most urgent one.

Building our emergency fund is just easy as writing a blog but the truth is it's not easy for the people that doesn't know their priorities in their lives.
If you will not build your emergency fund while you have a good earning's one day crisis will come that you didn't felt its already overtaken you, later you will felt you don't have money to spend anymore due to negligence of handling for it and you will be shock you are already in huge debt.

 I just want to share a short story from the bible regarding savings and conservation and I hope you will not asleep while you are reading it, even in biblical times God teaches us to save and conserve  for us to learn how to value our resources, many Christians known it word by word but the  truth is not all them are applying these great story.

Joseph and the Famine
13 There was no food, however, in the whole region because the famine was severe; both Egypt and Canaan wasted away because of the famine.14 Joseph collected all the money that was to be found in Egypt and Canaan in payment for the grain they were buying, and he brought it to Pharaoh’s palace. 15 When the money of the people of Egypt and Canaan was gone, all Egypt came to Joseph and said, “Give us food. Why should we die before your eyes? Our money is all gone.”
16 “Then bring your livestock,” said Joseph. “I will sell you food in exchange for your livestock, since your money is gone.” 17 So they brought their livestock to Joseph, and he gave them food in exchange for their horses, their sheep and goats, their cattle and donkeys. And he brought them through that year with food in exchange for all their livestock.
18 When that year was over, they came to him the following year and said, “We cannot hide from our lord the fact that since our money is gone and our livestock belongs to you, there is nothing left for our lord except our bodies and our land. 19 Why should we perish before your eyes—we and our land as well? Buy us and our land in exchange for food, and we with our land will be in bondage to Pharaoh. Give us seed so that we may live and not die, and that the land may not become desolate.”
20 So Joseph bought all the land in Egypt for Pharaoh. The Egyptians, one and all, sold their fields, because the famine was too severe for them. The land became Pharaoh’s, 21 and Joseph reduced the people to servitude,[a] from one end of Egypt to the other. 22 However, he did not buy the land of the priests, because they received a regular allotment from Pharaoh and had food enough from the allotment Pharaoh gave them. That is why they did not sell their land.
23 Joseph said to the people, “Now that I have bought you and your land today for Pharaoh, here is seed for you so you can plant the ground.24 But when the crop comes in, give a fifth of it to Pharaoh. The other four-fifths you may keep as seed for the fields and as food for yourselves and your households and your children.”
25 “You have saved our lives,” they said. “May we find favor in the eyes of our lord; we will be in bondage to Pharaoh.”
26 So Joseph established it as a law concerning land in Egypt—still in force today—that a fifth of the produce belongs to Pharaoh. It was only the land of the priests that did not become Pharaoh’s.
27 Now the Israelites settled in Egypt in the region of Goshen. They acquired property there and were fruitful and increased greatly in number.

Genesis 47:13-27 New International Version (NIV)


Sharing  what is useful and important really makes sense in my behalf so I hope you learned something from what did I learned from other people.  


May God bless you in handling your finances.

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