When people think about investing, they usually focus on things like picking the right stocks or finding good opportunities to grow their money. But Alvin Ubaldo, a trusted financial advisor, says there’s something even more important to take care of first—having an emergency fund.

What’s an Emergency Fund?

An emergency fund is money you set aside for those unexpected moments in life when things don’t go as planned. It’s like a safety net for your finances. Maybe your car breaks down, or you lose your job, or you have a surprise medical bill. That’s when an emergency fund can really help.

Why Does Alvin Say It’s So Important?

Alvin often sees people start investing without having this safety net. The problem? If an emergency happens, they might have to sell their investments quickly — maybe even when the market is down — which means losing money.

Having an emergency fund enables you to preserve your investments in the event that life takes a surprising turn. Your investment remains in place and has time to increase in value. It keeps you from making rushed decisions that could hurt your financial future.

How Much Should You Save?

Alvin suggests saving enough to cover about three to six months of your basic living expenses. That means rent, food, bills, and other essentials. This amount gives you enough time to get back on your feet without worrying about money.

If your job is less stable or you have a family depending on you, it’s a good idea to save even more. The key is to think honestly about your own situation.

Where Should You Keep This Money?

You should be able to quickly access your emergency fund when you need it. Alvin Ubaldo recommends putting it in a savings account or a money market account—somewhere safe where you can get to it fast without penalties.

Can You Save an Emergency Fund and Invest at the Same Time?

Many people wonder how to balance saving for emergencies with investing. Alvin says it’s smart to build your emergency fund first. Begin modestly; even a small monthly savings builds up over time. Once your emergency fund feels comfortable, then you can put more money into investments without worry.

More Than Just Money: Peace of Mind

The assurance it offers is one of the main reasons Alvin stresses the value of maintaining an emergency fund. Knowing you have some money saved for a rainy day helps you stay calm when life gets tough or the market gets shaky. It stops you from panicking and selling investments at the worst times.

Good Habits That Help You Grow

Building an emergency fund also helps you get better at managing your money. You learn to budget, save regularly, and avoid debt. These habits will also help you be a better investor because you won’t be rushing to fix problems or making impulsive moves.

Alvin’s Advice in a Nutshell

Alvin Ubaldo’s main message is this: before you jump into investing, make sure you have a solid emergency fund. It’s your financial safety net that protects you and your investments. It keeps you steady through whatever life throws at you.

Start saving little by little today. It may take time, but that emergency fund will give you the confidence and freedom to invest smartly and build a secure future.

Alvin Ubaldo Explains the Importance of Emergency Funds in Investing