saving for an emergency

For a lot of us in the Philippines, everyday is an emergency.

Let me relate that to this true story:

Just last Christmas, a generous kin handed me and my 2 brothers each a cash gift of P8,000. This amount in this country is equivalent to a minimum wage earner's one month salary, gross. So just imagine how we must have felt.

Almost immediately, i asked my brothers what they intend to do with the amount. Both said they're keeping it "for emergency".
In my mind, i was saying, at least they're wiser now (readers, please don't get me started with what i personally know of their money habits in the past), and i went home a little bit satisfied. You see, i have long made it my mission to educate everyone i know on smart money matters, including my siblings.

Then the emergency came: My younger brother needed a brand new cellphone, while my elder brother had to get the cutest puppy ever for his youngest kid.

Was i surprised? Just a little. You see, this is a normal thing in the Philippines today. I need not look far to see this phenomenon at work. It's all around me. I bet you readers each personally know of at least one person in your lifetime who looks at windfalls this way.

I'm sharing this to point out the obvious. An emergency is an emergency is an emergency, period. Do not twist the meaning of the word. Discipline yourself. Every penny counts, for heaven's sake.

As for my P8,000, as i write this, it is invested in the Philippine stock market, creating a few centavos here and there everyday, until i decide to encash it 10-15 years from now. By then, my brother's cellphone's worth will have become ZERO, while the puppy will have aged, if not already dead.

On that Christmas day, there were a number of options staring at me and my brothers. What to do with money suddenly became a problem. In the end, we had to make a decision. We each chose to save for separate emergencies.

I think it was Gringo Honassan who always says "everyday is a test of faith". What you decide on when asked between choices DEFINES your character.

So there. Our very first lesson.