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4 Situations You Can Dip Into Your Emergency Fund (Guilt-free!)

For over a long time now, I’ve been advocating for financial literacy. For example, if we talk about financial foundation, it’s supposed to be:

– your credit card debt is paid off;
– your income is protected (life insurance);
– your retirement fund account is growing; and,
– your emergency fund is safely stocked in your account.

emergency fund

Now you may be thinking, sure, you already know what you’re doing. You’ve finally started to accomplish all these. What now? What’s next?

Well, since I’ve been receiving lots of emails from you guys asking about the guilt-free situations when to really dip into your emergency funds, let’s start with that. 🙂

The next concept you should master is knowing exactly when you are supposed to dip into your emergency fund.

Should you use your emergency fund when:

– your favorite Kpop group suddenly announced that they’ll be having a concert in the Philippines and you don’t have a set money for ticket purchase?

– your significant other broke up with you and you’re depressed so you want to splurge on a designer bag; or, when…

– your neighbor’s having his wedding in Tokyo and he invited you as a guest.

If you thought yes, then we really need to get talking. It seems like I was like you in the past – I also thought that we can just dip into our emergency fund any time we wanted, but this isn’t the case at all!

You can only use your emergency fund in the following cases:

1. You have a medical emergency. Dental emergencies also count.

2. You got fired, or you resigned from work, or your business got bankrupt. Remember: your source of income may be gone, but your bills will continue piling up.

3. Your home needs an emergency repair. For example, your toilet is overflowing, your roof is leaking, your faucet won’t stop running, etc. (Although it would also be better if you have a separate budget for home maintenance monthly, right? Prevention is cheaper than the cure.)

4. For grief or bereavement-related expenses.

As always, your emergency fund is your tool against worry and stress. Sure, it may feel awesome to spend money, but wouldn’t it be better if you saved some of that so you can handle a real emergency in the future?


Want to get started managing your money/budgeting/investing? Contact me, your trusted financial advisor, through the following:

Twitter: @MsLianneLaroya
Mobile: 0916 737 8741

We can even meet personally for a FREE financial planning session! Let me know so we can finalize a schedule that works. No obligation to do anything – except share what you learned with your friends!

If you find this post helpful, please SHARE it to your friends. Who knows, you might help them by educating them. 🙂

Thank you, wonderful people!

Live wisely,

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