financialtreat – will explain about Emergency Financial Assistance Information for a Bright Future which you will get in the following article. let’s look at this article carefully!
This information is very important for your future. If you intend to organize the future then we will provide a description of Emergency Financial Assistance so that you can dilute your finances if at any time you need money in old age.
Emergency Financial Aid you can do first of all you should be able to manage your finances starting today. Because of this emergency, you can see during the Covid-19 pandemic.
Emergency Financial Assistance Information for a Bright Future
Preparing your Emergency Fund is likely that you and your family can keep your minimum daily needs met. To start you can create a priority scale in financial budgeting first.
Although an emergency fund is important, try to make the percentage of allocation needed not exceed your basic needs. have a careful calculation in managing finances in order to prepare funds for emergency needs so that you do not experience financial difficulties in order to fulfill the desire to have an emergency fund
When is the right time to use an emergency fund?
In preparing an emergency fund, steps to separate the budget need to be carried 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 prepared for unforeseen events or calamities. Both big and small.
Such as the cost of replacing vehicle spare parts at uncertain times, living expenses while looking for a new job, home renovation costs due to natural disasters such as floods, for example, to the needs of hospital medical expenses for personal and family members.
The purpose of the preparation of this emergency fund is to reduce the financial burden from the monthly budget that has been set.
Where to store an emergency fund?
For some people, there are still those who decide to keep an emergency fund in a piggy bank that is at home. This shows that accessibility is an important value in making decisions to save funds for emergency needs.
But it would be nice if you took into account the possibility of keeping an emergency needs fund in a savings product from a bank. Do not mix it with your main account. Make sure you open a new account for the needs of saving this emergency fund.
This is not only so that your emergency fund is mixed with other funds, but also facilitates the process of tracking how much funds for emergency needs have been successfully budgeted based on the time you have passed.
Outside of savings accounts, there are several other ways that you can also do in storing an emergency fund. You can also allocate funds for these emergency needs in flexible investment instruments, such as mutual funds.
By keeping an emergency fund in an investment instrument such as a mutual fund, you don’t need to worry, because you can also have the opportunity to present a profit from the increase in investment value based on the special funds that you have allocated every month.
Even so, also make sure that the investment instrument you choose to store this emergency needs fund has a disbursement process that is not too long. In accordance with its needs, an emergency fund is needed to overcome needs in uncertain times.
How much is the emergency fund allocated?
In preparing the budget or allocation of funds needed for an emergency fund, there is actually no definite formula. The thing you need to pay attention to first is to determine the priority scale based on your daily needs and lifestyle.
This can be a good reference in determining how much money you need to prepare in meeting the needs of funds for emergency needs. For those of you who still need another overview, here is an easy guide that you can follow in determining the amount of an emergency fund. Guide to Determining the Amount of Emergency Fund
For those of you who are single and do not have dependents or large installments, preparing an emergency fund is one of the easy things. The convenience factor is present because you do not need to allocate funds outside of your needs and lifestyle.
For the calculation of the amount of emergency needs funds needed, you need at least 6 times the amount of monthly expenses. Although it is fairly easy, sometimes this mindset makes people forget the importance of saving and preparing funds for emergency needs. Make sure you can prepare an emergency fund every month consistently.
For those of you who have just married, actually how to prepare a fund for emergency needs can be applied in the way you did when you were single. In addition, the burden of costs allocated per person can feel lighter, because you can prepare an emergency fund with your partner, if you and your partner both work and have a fairly good monthly income.
Living with a partner will certainly make essential needs and lifestyles increase. Therefore, for those of you who have just gotten marrie and want to prepare an emergency fund, make sure the amount of funds prepared is 9 times the amount of household expenses every month.
It would be nice for you to allocate funds at a greater percentage compared to when you were single to increase your sense of security in the future.
If you just have the desire to prepare an emergency fund when you have a family, this may feel difficult to achieve. Family monthly expenses calculated from your spouse and the number of children you have certainly require a large allocation of funds compared to when you were single or newly married.
However, this does not mean that preparing funds for emergency needs is impossible. It would be nice, if you are already a family. You need to prepare a fund for emergency needs of 12 times the essential expenses of each month.
· Start Saving an Emergency Fund
In preparing an emergency fund, of course, it is important for you to first prepare a monthly budget. Make sure that in times that are not an emergency, all basic needs can be met. Then prepare a percentage of monthly income as. A rough calculation for the amount of funds you need to prepare every month.
Make sure these calculations will not make it difficult for you to meet the needs of life every day. If it is still difficult to allocate funds based on maximum calculations, you can still prepare the minimum possible funds. The reason is that in preparing funds for emergency needs. Discipline and consistency are important aspects that you need to understand.
In order to increase the sense of security when saving money for an emergency fund. You can open a special savings account such as cimb niaga Xtra savings. CIMB Niaga Xtra Savings is a savings product from CIMB Niaga. Which is not only useful as a means of saving an emergency fund but also offers benefits for you.
One of the advantages offered is life insurance. And health insurance for free for you and your family thanks to the integration with the Xtra Proteksi program. In addition. You will also get free transaction fees and free cash withdrawal fees as much as 10 times every month. What are you waiting for. Immediately open CIMB Niaga Xtra Savings to prepare for a safer and more comfortable future.
Read more financial independence:
- Types of Benefits and Term Life Insurance that Need to be Know
- Emergency Financial Assistance Information for a Bright Future
Additional Information on the Benefits of Having an Emergency Fund
What are the benefits of having an emergency fund, here is a more complete explanation, namely:
- No confusion looking for large amounts of cash
- It doesn’t lose momentum.
What is meant by not losing momentum here is that the emergency fund owne. If needed, can be a way out. When there is a rare offer or opportunity that requires. A certain amount of funds in a short time, for example. Aproperty offer at a very attractive price and limited units
- Investment funds are not erode
- Reserve funds to anticipate losses so there is no need to mortgage anything or find a loan
- An emergency fund makes life calmer and more secure.
Such is the review of Emergency Financial Aid. This information is so that you can dilute your finances if at any time you need money in old age. Hopefully, the information above can be a useful review.