Why our Emergency Fund is based on Monthly Expenses, not Monthly Income

If you have searched the internet about Financial Freedom you have come across the concept of Emergency Funds. Ideally, this is around 3 to 6 months of your monthly income or expenses.

An Emergency Fund is an amount of money that you set aside in case you lost your income. It also acts as a buffer to avoid touching savings or investments during emergency expenses.

Most of the books and internet articles we read says that it should be based on monthly income, there are a few that says it should be based on Monthly Expenses.

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Bill Shock? How to check if your Electricity Consumption increased this Summer of 2020 (Covid-19)

The summer heat has just been unbearable these days. And while the rainy season has started with outpours, we have not totally gotten off the effects of summer. Such as the case of our upcoming electricity bill. For the last few days, we’ve been waiting anxiously to receive our bill to see the heavy truth of our increased electricity consumption. Since we are very mindful of what appliances we use and for how long we use these, it’s easy to assume that our bill will blow up than the usual. So how will you know and check if your electricity consumption has increased?

As an engineer, I tend to focus more on the numbers especially the ones in our Electricity Meter. See the step-by-step instructions on how to check if your electricity consumption increased this summer of 2020.

How to check if your Electricity Consumption really increased?

We need to get 2 meter readings, preferably 7 days apart but 3 days apart might also be good enough.

1. Get the 1st Meter Reading

If you have received your May 2020 bill, we can use this as your first meter reading.

Get the Pres Rdg at the back of your bill. We will refer to this as 1st Meter Reading Value.

Note also the Meter Reading Date in the front of your bill. We will refer to this as 1st Meter Reading Date.

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Bill Shock? How to check if Meralco made an error on your May 2020 Bill (Covid-19)

Shocked by your current Meralco electricity bill? Us too.

With Covid-19 outbreak, the last two previous Meralco bills (March & April 2020) we were told that it was generated based 3 month’s electricity consumption average before that billing period. This meant that March & April bills did not reflect the increased consumption of the household with everyone at home 24/7 and the effects of summer heat as well. With Meralco staff now reading the electric meters for May 2020 bill, it is expected that it will reflect the actual electricity consumption for the month of May, as well as the consumptions that were not charged for the previous two months.

Find out how you can check and compute the electricity consumption of your household and see if you’re overcharged by Meralco.


Check for Meter Reading Error

If you already have your May 2020 bill, go to the back page and search for the Pres Rdg (Present Reading) under Metering Information.

Note this number. We shall refer to this as May 2020 Bill Reading.

Continue reading Bill Shock? How to check if Meralco made an error on your May 2020 Bill (Covid-19)