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Calamity fund


chinkee tan chn cht ctan

HOW are you?

It is just the first half of January and we are have been shaken and tested.

Recently, the long been sleep­ing Taal Volcano suddenly let its presence felt. The toxic ash fall scattered from Batangas all the way up to the northern provinces.

The volcanic eruption has dam­aged millions worth of properties and has displaced thousands of Batangueños. The disaster has led to loss of thousands of homes, incomes, and livelihoods.

When unforeseen and unfortu­nate event like this happens, we must always be ready. We must know what to do, what to bring, and where to go.

But more than anything else, we must also be prepared fi­nancially. You can be financially ready in times of disaster through setting up your calamity fund.


  1. Calculate how much you need

Remember that in setting up your calamity fund, you are not wishing for bad things to happen. You are just preparing for the worst-case scenario.

So in your fund, account the possibility of losing your home, your livelihood, or even losing a loved one. How much will you need if all of these unfortunate things happen?

Also, take into consideration the amount you need if a catas­trophe lasts for several months. For instance, the Taal Volcano eruption is expected to last for six months. So it is wise to have a fund that can withstand for at least six months.

More than covering for all your needs, calculating how much you need will keep you away from having debts so that you can start your life again.

  1. Find a safe and acces­sible place for your money

Keeping cash inside your home can work in case of emergency. However, your home may be accessible but it is not a safe place for your finances. What if your house is suddenly taken by fire? Or be destroyed by a strong typhoon?

Your money will disappear along with the walls of your home once a disaster strikes. So, find a place where your finances are insured and can be easily with­drawn in case of urgencies.

It is still wise to put your finances in a place where it is liquid and insured, such as in a savings account. You can also inquire your bank if they have options for an accessible calamity fund.

  1. Build your fund

You are not anticipating for a calamity to hit you. You are saving up because you are realistic and have foresight. So, every month or every pay day, allocate a cer­tain percentage of your income for your calamity fund.

This also applies the concept of prioritizing. If you give impor­tance to being prepared in times of uncertainties, you will cut your spending, flee away from unnec­essary purchases, and choose to save up.

The calamity fund can protect you and your family in times of disaster. It is always better to be over-prepared than to be unpre­pared at all.

Now that our kababayans are in a state of calamity because of the Taal Volcano eruption, let us do our best to help them start again.


  1. Do you have a calamity fund?
  2. Have you had an emergency in which you were not financially prepared? What did you do?
  3. How much will you save ev­ery month to build your calamity fund?

What do you think?

Written by Tempo Desk

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