The lack of a financial safety net leaves you vulnerable to the impacts of unexpected expenses or income disruptions. To gain confidence and peace of mind, you can build a dedicated fund for rainy days, one that can help you reduce financial distress that can be caused by illness, job loss, or urgent home repairs. Putting together an emergency fund that can sustain your household for several months, however, is easier said than done. This is especially true when you can barely add to your regular savings as it is.
The good news is that having low savings now is not a barrier to building a strong financial cushion later on. You can do this with the right habits and mindset, plus access to reliable financial tools from trusted providers like Maya. By understanding the resources available to you and maximizing their capabilities, you can make steady progress toward greater financial security. Here’s a guide that you can use to achieve your goal:
1. Define What a Financial Safety Net Means for You
A financial safety net can mean different things for different people, as it should be matched with your lifestyle and responsibilities. For most people, this means saving the equivalent of three to six months of essential expenses, including rent, food, utilities, and transportation.
But this benchmark is flexible. If you’re single and live simply, you might aim for three months. If you’re supporting a household, six months or more may be more realistic. The key is to know your numbers and create a savings goal that reflects your life.
2. Start with Small, Consistent Savings
It can feel a bit daunting when there’s a huge gap between your goal amount and your current savings. Remember, however, that saving doesn’t have to mean setting aside a huge amount right away. What matters most, especially when you’re just starting out, is consistency. Even PHP 50 to PHP 100 a day or week can add up over time. The habit of saving, in turn, lays the foundation for a financial safety net.
3. Track and Adjust Your Spending Habits
Many people struggle to save simply because they don’t know exactly where their money goes. Overcome this initial hurdle by tracking your spending for a month. Once you have a list of your actual expenses, look for areas where you can cut back. Some common adjustments include:
- Canceling unused subscriptions.
- Limiting takeout and dining out.
- Avoiding impulse purchases by waiting 24 hours before buying.
Then, redirect the money you save from these adjustments straight into your safety net fund. This will help you determine just how much you can save every month and do so consistently.
4. Use Financial Tools to Bridge the Gaps
When you’re still in the early stages of building your safety net, your savings might not be enough to cover every unexpected expense. When you need additional funds fast, borrow money using credit and loan products from the #1 digital bank in the Philippines. You can apply for the Maya Easy Credit or Maya Personal Loan on the Maya app, the application processes for which are quick and straightforward. Knowing about these options lets you respond to urgent financial needs in a snap. It’s not meant to replace savings but to complement them, especially in situations where timing is critical.
Let’s say you need to pay a utility bill before payday, or your car requires an immediate repair. You can use Maya Easy Credit for this smaller, short-term need. This virtual credit line of up to PHP 30,000 is designed to address temporary cash flow gaps. Unlike traditional credit, Easy Credit doesn’t charge interest. Instead, you pay a straightforward service fee of as low as 3.99% and settle your balance within 30 days. Once approved following a credit evaluation, you can then either transfer the money to your Maya Wallet or use Maya Easy Credit directly as a payment method when checking out online or scanning to pay with QR in participating merchants.
Knowing you have an instant backup option while you steadily grow your emergency fund can give you peace of mind.
5. Grow Your Fund with Extra Income
If your budget is already stretched, look for ways to increase your income. Extra earnings can fast-track your savings goals and give you a stronger safety net in less time. These are common ways of boosting your income:
- Freelancing or part-time jobs that fit your skills.
- Selling unused items online.
- Using your hobbies, like baking or crafting, to earn side incomes.
- Directing windfalls, like bonuses or 13th-month pay, straight into your emergency fund.
These can make a big difference if you commit them fully to savings.
6. Plan for Bigger Life Goals
Once you’ve built the foundation of your financial safety net, you can start preparing for bigger life events and long-term stability. For larger expenses that go beyond what savings alone can cover, Maya Personal Loan is a flexible solution. It lets you, in an instant, borrow money from PHP 15,000 up to PHP 250,000 (subject to credit evaluation). Maya Personal Loan also has flexible repayment terms of 6, 9, 12, 18, or 24 months add-on rates starting at just 0.77% per month. It’s a practical option for major needs like funding home improvements, handling medical expenses, or even consolidating higher-interest debts.
7. Stay Consistent and Review Regularly
Building a financial safety net isn’t a one-time task. It requires consistency and regular check-ins. Make it a habit to review your progress monthly and adjust your savings targets as your lifestyle changes. It’s also a good idea to celebrate milestones along the way to encourage yourself to keep your eye on the goal.
Life doesn’t stay the same, and neither should your financial plan. By reviewing regularly, you can adapt to new opportunities or responsibilities while keeping your safety net strong.
Building Security, Step by Step, with Maya
Starting with low savings doesn’t mean you can’t build a reliable financial safety net. With consistent effort, smart spending habits, and the right financial tools like Maya Easy Credit and Maya Personal Loan, you can create a cushion that protects you from the unexpected. Every peso saved, every smart choice made, brings you closer to financial freedom.
