Hello everyone, I just wanna share a personal update about our journey to financial freedom. This is another personal story but I’m hoping you get a bit of inspiration and lesson here.
Yesterday upon receiving our salary, me and my wife have deposited the last ‘chunk’ of cash to complete our emergency fund. And boy we’re done! Wooooh!
As I shared on previous articles before, our initial goal as a newly wed couple is to build a solid emergency fund which is equal to 3 – 6 months of our monthly expenses. We targeted 4 months equivalent of our expenses. We worked hard on that goal and after almost a year, we’re done! Boom!
Our emergency fund is sitting in our new joint savings account(BDO) via ATM. Why ATM? Because of emergency! That’s where your emergency fund should stay. You can pull it out anytime and anywhere in case emergency situation arises.
Don’t put your emergency fund in passbook or other savings account where you can’t withdraw them immediately. Or worst, don’t put your emergency fund in stock market or other volatile investment instrument that can go down anytime.
What if you need that money and those ‘investment‘ are down? Or you have the emergency on holiday? Weekends? or Midnight? Keep in mind that emergency fund is for emergency! Nothing more, nothing less!
If you just starting out, I suggest you read my previous article entitled ABC of builing an Emergency fund. You can learn valuable lessons on this article about how and why you need to build a solid emergency fund.
Our next step is to save another fund for our future baby. Yap! We’re planning to start a family and we’re working on that fund too. We’re gonna call it baby fund. 🙂 And of course, this is purely for our future baby’s expenses and needs. We’re saving for check-ups, medicines, hospitalization and all other expenses for pregnancy and a new born. This is our new goal and we’re pretty sure we can make it too.
If you’re a newly wed too, or even single or planning to tie the knot soon, I suggest you to do the same. Talk to your hubby about your financial goals and work on them together. You can also check my previous article that share tips on how to setup smart financial goals here.
I’m sure this can provide you some insights and help you make some plans about your personal finance. Plan, dream and work on them together. Start small. Take one step at a time and be consistent.
Thank you for your time. This might be another personal things to share but I feel other persons especially newly wed can relate and be inspired by sharing things like these.
As I mentioned before, I will share valuable personal finance tips on this blog including our own journey to financial freedom.
How about you? Did you achieved any of your financial goals that you set before? If yes, time to celebrate! Please share it to us so we can congratulate you. I’m sure we can also learn some lessons and tips from your experience.
Again, thank you. To our success, cheers!