Loss of employment

Losing a job can happen to anyone for various reasons, including company restructuring or downsizing.
This was made very clear by the global pandemic. Even the most secure job positions and companies
were forced to close shop because of difficulties brought about by COVID-19. An emergency fund allows
you to survive until you find your next employer.

Getting sick or meeting an accident

Nobody likes to think about getting sick or going through a major accident but recovering from illness
and injury entails medical costs. Without an emergency fund, you are forced to spend money that
normally pays for your living expenses. This causes added stress and may lead to anxiety. Instead of
focusing on your recovery, you’re more worried about figuring out how you can afford your medical
bills. If you do get to pay them off, you may find yourself in debt for years to come.

Having a child

A pregnancy comes with prenatal care expenses, as well as long-term changes to your lifestyle. If you
have not previously saved up for your little bundle of joy, he or she can eat away at your savings. This is
where an emergency fund comes in handy. Having a baby in the Philippines can cost up to PHP 2 million.
An emergency fund gives you a bit of a cushion while you save up for when your baby arrives.