financialtreat – will explain about information about Crisis Emergency Financial Assistance that you will get in the following article. let’s look at this article carefully!
The current conditions are certainly a lesson for those of us who are affecte by the corona virus pandemic that has hit the economy in Indonesia and internationally. Then you need to know about The Daruruat Crisis Financial Aid as a way to survive from unpredictable circumstances.
Daruruat Krisis Financial Assistance is a way to overcome your finances and your family if at any time something happens that we don’t want. So how curious is not the following, see the explanation in more detail below.
Information About Crisis Emergency Financial Aid
The impact of the covid-19 pandemic on workers that was felt from the economic growth was the termination of employment of leave outside of dependents and cuts in monthly salaries. Then you have to know financial aid in the wake of this crisis.
For business owners, one of the affecte is also a decrease in turnover and even business closures because the community reduces activities outside the home to reduce the transmission of the corona virus.
Why It’s Important to Know About Financial Aid From The Crisis
Because in this situation full of uncertainty, an emergency fund has an important role. An emergency fund is understood as funds that have been collecte over a certain period of time to anticipate unpredictable events such as job losses, accidents, economic crises, natural disasters, serious illnesses and so on.
As a financial buffer, an emergency fund can be use to meet daily needs without the need to rely on other parties. The amount of emergency funds that need to be collecte varies depending on the condition of each person which of course varies. The amount can start from 3 times to 6 times the monthly expenses.
amount of emergency funds varies for workers or business owners who are unmarrie, have a family (have a spouse and children) and who have dependents to support others such as parents, siblings/ siblings to orphans/ orphans.
For workers or business owners whose income is affecte by the corona pandemic, an emergency fund can be use to meet the needs of daily life before returning to work and business so as to get income.
Tips for Raising an Emergency Fund
Raising an emergency fund is not as difficult as thought. It’s never too late for those who have never raise an emergency fund. Here are some tips that can be applie to raise an emergency fund:
• Set Targets
After realizing the importance of these funds to deal with unexpecte events, we can start thinking of ways to collect them. One of the first steps in raising an emergency fund is to set a target.
The target can be determine base on monthly expenses. As an illustration, our expenses are IDR 6 million per month. We want to raise an emergency fund as much as 6 times the monthly expenses.
Thus, we need to raise an emergency fund of IDR 36 million (IDR 6 million multiplie by 6 months). Of course, these targets need to be adjuste to the conditions of each of them which have various differences.
• Financial Assistance: Set Aside Income
After setting these targets, we need to set aside part of our income (usually monthly) to be use as an emergency fund. For example, we have a salary of IDR 10 million per month. From this salary, we can set aside IDR 3 million for an emergency fund.
From the target of IDR 36 million, we can collect emergency funds for 12 months (IDR 36 million divide by IDR 3 million). There is nothing wrong with continuing to increase the amount of emergency funds to increase our financial buffer.
This principle of setting aside income should not be confuse with the principle of leaving income. Setting aside income means allocating part of the income for an emergency fund before spending various expenses.
On the contrary, leaving income means using the remaining money after spending various expenses. Setting aside income needs to be done to maintain the consistency of the amount of money prepare for the emergency fund.
• Financial Assistance: Depositing in a Segregate Account
Emergency funds need to be liquid or can be use at any time when neede. Thus, emergency funds are highly recommende to be kept in savings, not other investment products such as gold, stocks, mutual funds, bonds and so on.
To anticipate use for non-emergency and non-urgent purposes, we can keep the emergency fund in a separate account that is different from the salary account, account for daily life expenses or other savings accounts.
In addition, we must create a clear boundary between an emergency fund and a non-emergency fund. If you are not discipline in making the separation, plans to raise an emergency fund can be abandone. The separation is getting easier to do with segregate accounts.
• Financial Assistance: Setting Up an Account
The emergency fund can be prepare in a savings account that has an attractive interest rate, can be withdrawn at any time and is easily accessible such as Maxi Savings which can be opene in the digital banking application owne by Bank DBS Indonesia, namely digibank.
Maxi savings are deposits that offer a higher interest rate compare to regular savings as well as no provisions regarding the minimum balance. The interest rate of Maxi Savings can be up to 4%!
In addition to interest, this Maxi Savings has some interesting features such as withdrawals at any time without any penalties and no administration fees. Customers can also send money to Maxi Savings from another bank account.
In addition, how to open a Maxi Savings account is very simple. We only need to have a digibank account first. Therefore, we no longer need to fill in the data from scratch to open a Maxi Savings Account. All of that can be done via smartphone within 24 hours and 7 days a week. We can collect emergency funds through digibank without having to go to the branch office.
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In preparing an emergency fund, steps to separate the budget need to be carrie out as early as possible. This makes it possible for you to allocate a relatively small amount of funds every month.
Let’s assume that preparing a fund for emergency needs is the same as saving. If saving is usually synonymous with the purpose of buying a gadget or vacation, regarding funds for emergency needs, you prepare financial management for a long period of time.
It should be understood, that the word emergency does not only refer to the conditions of the Covid-19 pandemic. Funds for emergency purposes need to be prepare for unforeseen events or calamities. Both big and small.
Additional Information on Indonesia’s Economic Mitigation during the Pandemic on International Assistance and National Strategies
Economic setbacks or economic crises are not something that can be avoide, therefore the Ministry of Finance (Kemenkeu) is trying to minimize the economic impact due to Covid-19. Realizing the negative impact on the Indonesian people, the Ministry of Finance (Kemenkeu) will use the National Economic Recovery Program (PEN) in the third and fourth quarters.
With the Economic Recovery Program (PEN) and the end of PSBB (Large-Scale Social Restrictions). Which restores people’s economic activity through increase mobility. And demand for working capital credit in the banking industry. The government is optimistic that it can restore the pace of economic development this year and get out of the minus zone.
According to the Head of the Fiscal Policy Agency at the Ministry of Finance. (Kemenkeu) Febrio Nathan Kacaribu, the target for the year is to get 0% or at least. Positive percent in economic growth which is different from the usual one who targets economic growth of 5%.
Indonesia’s strategy includes a social protection program. Of Rp 203 trillion which aims to support public consumption, especially vulnerable groups. Interest subsidies and restructuring for the informal sector, the small, micro and medium enterprises sector. And the government to place low-cost funds in the banking industry.
Limitd laboratory facilities, especially to overcome the spread of Covid-19 through SWAB tests. Resulte in the Indonesian government having to take a Large-Scale Social Restrictions (PSBB) policy.
With the implementation of Large-Scale Social Restrictions (PSBB). Many people have lost their jobs and need economic assistance so that national strategies. And international assistance are neede to support the economy.
The economy is the main support of a country’s activities. So that economic decline or economic crisis will greatly affect the people of the country.
Indonesia is a developing country that is vulnerable to health and economic problems. So the World Bank (World Bank) has provide assistance to support the Indonesian government as a member. However, the International Monetary Fund (IMF) has not provide assistance to Indonesia since the 1998 monetary crisis.
That’s the review of The Daruruat Crisis Financial Aid. This information is a way to overcome your finances and your family if at. Any time something happens that we don’t want. Check out the information above so that it can help you in your future.