Is Your Wallet Ready for an Emergency?


They say that the most effective way to fend off emergencies is PREPARATION.

Emergencies can range from acquiring some bruises during a bike ride, to being unable to work for the entire month due to sickness, or to a sudden death of the family’s breadwinner. Their extent and gravity are so varying that predictability is practically impossible.  Fortunately, there are ways to prepare us and our loved ones against the negative effects of these untoward incidents.


One of the most valuable ways is to prepare ourselves financially. Experts call this as the setting up of an EMERGENCY FUND.  This fund is where you draw financial resources during emergencies or any unexpected, necessary expenses.  It constitutes the most fundamental aspect of money management. In fact, this should be the very FIRST thing everyone must saving for, NO EXCEPTIONS.


The first and most crucial step to setup an emergency fund is to determine MONTHLY EXPENSES. Here, the calculated monthly expenses should be representative or at least reflective of your actual. It is suggested that you take a number of samples, say 3 months and take the average. To give you a jump start, I have included the following guide list for most types of regular expenses:


This is, of course, not exhaustive and feel free to add accordingly or filter only the ones applicable to you.

Once you have a monthly total, multiply that value by a certain FACTOR to determine the TOTAL EMERGENCY FUND you need to put up. The factor varies across different financial advisers. Suze Orman, a renowned financial guru, for one, recommends a factor of 8, corresponding to 8 months. Francisco Colayco, a Filipino financial expert, on the other hand, suggests the factor 6 (months).  The rationale for this factor is to give some lee way and margin of safety such that ‘normal’ life could continue after an emergency. This also gives ample time for proper reactions and adjustments to problematic incidents (e.g. A person laid off would be given 6-8 months to find a new job).

Let’s say we followed Suze and employed the factor 8. For example, your computed total monthly expense is Php40,000 ($1,000).  Simple multiplication tells us that an amount of Php40,000 x 8 = Php320,000 ($8,000) should be put aside for your emergency fund. This means that your saving efforts must be primarily focused into building and maintaining this fund. Otherwise, you could be in deep trouble when an emergency strikes.

Given the unpredictable nature of emergencies, liquidity (availability) of emergency funds should be well-preserved. As such, these funds are normally stored in normal bank deposit accounts with no or little withdrawal constraints.


After you established the recommended emergency fund amount, that’s the only time you can venture into the different vehicles of INVESTING. Some of which include Term Deposits, Government Bonds, Mutual Funds, and the Stock Market. Putting up a business could also be in order for some. The point to remember is to keep the value of your money growing with the goal of earning passive income to possibly sustain you and others in the future.

I hope these information prove to be urgent and helpful at the same time. Happy saving and investing. 🙂

>> God is good all the time. 🙂


ITA: 04 July 2012 | Correction


Market got off to a very hot start only to see her gains melt near midday. PSEi closed in the red losing almost 11 pts. At this juncture, this is nothing but a welcome and necessary halt/correction to the bull run we have been witnessing over the entire week. This could all change though if this selling pressure continues to the rest of the week.

I have already liquidated some of my positions with quite decent gains (at least for me). 🙂

Position Ave. Entry Exit % Change Days Held
MER 248 267.8 7.98 23
EEI 6.30 6.49 3.02 34

ITA: 03 July 2012 | PSEi Goes All-Time High

All time high!

No stopping PSEi today from trodding to new and unchartered heights. The Philippine stock market index gained another 65 pts. (1.24%) to close at an all time high of 5,365.70. Value turnover was good at 6.76B.

Continue reading

2011 Top 15 Life Insurance Companies in the Philippines

I’m quite surprised to know that as of 2010, there are only 3.3M active policies in the entire Philippines. Take note, these are policies, not individuals – as certain people could own multiple policies.

And even if we assume all of these policies belong to distinct people, it would still lead to a lowly 3% of the entire Philippine population today.

I guess there’s still a lot of fish in the ocean for insurance agents. 🙂

I personally hold a Philippine AXA and an Insular Life insurance policy. So this table is a definite confidence booster! 🙂

For complete story and details: Click here.

ITA: Not Looking Good for MEG

It’s not looking good for MEG at this point.

After a confirmed downtrend, a descending triangle, accompanied by contracted volume, has been in the works for MEG. At current conditions, prices must hold above 1.9 or we could be seeing 1.6-1.7 soon. On the other side, a convincing break above 2.05 is needed to break the bearish pattern. We could be seeing these big movements from MEG quite soon.

>> God is good all the time 🙂

ITA: 11 June 2012 | Counting on a Bailout

Counting on a bailout.

It’s been a while since my last Stock Market ITA. From the last time I wrote, market seemed to have withstood the storm and is now looking to trend back up. With the news of Spain’s bailout becoming more evident, markets including ours made huge rallies following DOW’s strong showing last Friday. PSEi jumped almost 82 points on fairly decent volume.

Was pleasantly surprised with DMC as the stock recovered to close just 0.1 lower than its previous. This is considered a strong showing given that today marked the ex-date of the stock which issued a cash dividend of Php1.20/share. Will continue to hold this.

Position Ave. Entry Last % Change Days Held
DMC 54.50 55.90 2.57 5

Made new positions in MER.

Position Ave. Entry Last % Change Days Held
MER 248 246.6 -0.56 1

Another noteworthy performance was that of URC, gaining 7.32% today. This looks to retest resistance at the 68-69 levels. Closing price was at 66.

Tomorrow is Independence Day! I should cherish and not abuse my freedom realizing it was bought for me with such great price. 🙂

>> God is good all the time 🙂

Philippine Stock Exchange Index (PSEi) Composition

The following lists the companies included in the Philippine Stock Exchange Index (PSEi) as of 01 June 2012.


1 Ayala Corporation AC
2 Aboitiz Equity Ventures AEV
3 Alliance Global Group AGI
4 Ayala Land Inc. ALI
5 Aboitiz Power Corp. AP
6 BDO Unibank Inc. BDO
7 Belle Corporation BEL
8 Bank of the Philippine Islands BPI
9 Cebu Air Inc. CEB
10 DMCI Holdings Inc DMC
11 Energy Development Corporation EDC
12 First Gen Corporation FGEN
13 Globe Telecom Inc. GLO
14 International Container Terminal ICT
15 Jollibee Foods Corporation JFC
16 JG Summit Holdings Inc. JGS
17 Metropolitan Bank and Trust Company MBT
18 Megaworld Corporation MEG
19 Manila Electric Company MER
20 Metro Pacific Investments Corporation MPI
21 Manila Water Company Inc. MWC
22 Philex Mining Corporation PX
23 Robinsons Land Corporation RLC
24 Semirara Mining Corporation SCC
25 SM Investments Corporation SM
26 San Miguel Corporation “A” SMC
27 SM Development Corporation SMDC
28 SM Prime Holdings Inc. SMPH
29 Philippine Long Distance Telephone Co. TEL
30 Universal Robina Corporation URC

Click here for more details.