Emergency funds are a source of funds that need to be prepared in household finances. Why? Parent Pointers know that economic conditions are often unstable. So don't think that your condition will always be safe.
Termination of employment (PHK) can happen at any time. Accidents and the like can threaten at any time. Preparing funds for urgent, urgent, and emergency conditions is one of the efforts to keep the family economy stable.
Without finances that are prepared for conditions like this, various family assets may be sold out when there is a disaster or things that are not wanted.
How to Prepare an Effective Emergency Fund
Did Parent Printers know that not all families have an emergency fund allocation prepared?
Apart from not understanding the importance of this fund allocation, it could also be due to income constraints that are still mediocre.
Then what are the tips and ways to prepare emergency funds that may be needed at any time?
1. Allocate Consistently
In the household financial budget allocation, Parent Printers can include it in the unexpected expense budget. The amount depends on the agreed allocation. The figure of 10 percent of the total salary is still good enough to be regularly collected.
Commitment and consistency with this allocation. No matter how small the allocation is every month, you still have to commit to depositing it.
2. Provide a Special Account
If you want to prepare finances in an emergency seriously, you can set up a particular account to allocate these emergency funds.
This account is not an ordinary savings account but is explicitly made for urgent, emergency needs and things outside of ideal conditions.
Why special accounts? So that you are not tempted to take it and separate it from regular savings so that it is not allocated for other non-emergency needs.
3. Clear Timeframe
Even for sudden, critical, and unexpected things, Parent Printers must still set a target for savings. For example, for how many years have these funds been collected.
If in the year that has been determined but the funds are still safe, they have not been used for unwanted conditions, you can allocate these funds to buy more stable and productive assets.
For example, you can buy gold, property assets if good, or other productive things.
4. Truly Emergency Use
An emergency is a genuinely urgent condition that must be fulfilled as soon as possible for urgent reasons and cannot be postponed.
Truly the nature of need is no longer a desire, and even sometimes, its nature is a disaster.
Some examples of emergency conditions that allow you to use the budget allocation for emergency funds, for example:
Cost of serious illness
A disaster that makes assets run out
Falling bankrupt from business
Urgent education costs, and so on.
Conditions like these are in dire need of emergency financial reserves that you have allocated so far.
Do not use your emergency fund savings for secondary or less urgent things.
If you can postpone it, postpone it. Do not give in to desires because what is more critical is need.
5. Looking for Other Sources of Income
If you feel that your current income is insufficient if it has to be allocated to an emergency fund post, you should look for other sources of income to help create a bigger budget.
So far, maybe only a few percent you can allocate for emergency funds, or even often neglect to deposit.
The existence of other sources of income can help you increase the amount of your deposit budget regularly so that the amount can be more significant within a set period.
This other source of income can also help the allocation of other expenditure items to be more flexible.
Essential needs can be more easily met, and budgets for things like emergency funds can also be allocated.
6. Monitor the Amount
Monitor the number of emergency funds that have been collected regularly. Why should it be monitored? One of them is as a form of evaluation and helps you be even more excited to increase the number if it is still tiny.
In addition, it is also to help you estimate approximately the number of endings that may be achieved in a predetermined period. If it turns out that it is still lacking, it is necessary to find other sources of income to increase the amount according to the target at a predetermined time.
Emergency Funds Are Not Enough When Conditions Are Emergency, What's the Solution?
When your child has to go to college while the savings or emergency funds you have collected are still not enough to meet them, what is the solution?
Don't worry, because now there are educational loan lending institutions with loan products that are efficient and profitable.
Pintek provides a variety of profitable loan products to finance various levels of education, from schools to universities.
Including if Parent Printers have children who want to continue their studies or study abroad, then it is very appropriate to take advantage of loan products from Pintek.
In addition to the more affordable installments, the application process and the requirements requested are also more straightforward and effortless.
Pink is here to help Indonesian children realize their dreams of continuing their education in the desired field, favorite campuses, and majors that may have been in demand for a long time.
Prepare your emergency fund now. If that's still not enough, don't hesitate to partner with Pintek specifically for urgent educational needs. Realize quality Indonesian human resources with classy education.