financialtreat – will you explain about What is the Ideal Emergency Fund During a Pandemic? which you will get in the following article. let’s look at this article carefully!
The moments of the future become something that cannot be predicted by humans. Even during the Covid-19 pandemic, which is still not over. Therefore, it is important for us to prepare an emergency fund. Actually, preparing an emergency fund is not only during a pandemic. An emergency fund is one of the important posts that must be regulated as a good step in financial management. For this reason, it is necessary to prepare how much emergency funds are needed at this time.
An emergency fund is a source of funds that is set aside and prepared for an emergency atmosphere, outside of expenditure posts and other savings. The emergency atmosphere can be described as the current Covid-19 pandemic which has a huge impact on the economic sector. Well, on this occasion we will discuss about how much an emergency fund is for that let’s look carefully at the following article.
What is the Ideal Emergency Fund During a Pandemic? Here’s How to Calculate It
Emergency funds are only used when conditions are urgent. Such as, if a family member experiences a Termination of Work Intmasaksi (Layoff). Preparing funds for emergency situations can help you and your family maintain your daily needs to be fulfilled.
Being able to manage finances in order to prepare an emergency needs fund is an important skill that must be possessed so that you do not experience financial difficulties. Let’s discuss in detail the amount, utilization to damasah to allocate emergency funds. Check out the reviews.
What is an Emergency Fund?
An emergency fund is money that is provide or collecte and you can withdraw at any time when the need is urgent or unexpecte. Many people nowadays to have an emergency fund starte from a pandemic that never ende. During the pandemic, there are many urgent circumstances that require people to spend some expenses such as for treatment and treatment after covid.
But actually, the emergency fund is not only use for health purposes, but there are many benefits that you can get, especially in urgent conditions, including accidents, damage to houses, damage to vehicles, loss of cellphones, and others. In order for an emergency fund to be better controlle, you should keep your emergency fund savings in a separate account from your daily transactional account.
The Ideal Amount of Emergency
Preparing an emergency fund certainly requires a priority scale in the financial budget first. Although an emergency fund is also important, try to make a presentation to allocate it not to excee the basic needs.
Basically, there is no certain formula for drawing up a budget or emergency fund allocation. The most important thing is that you understand the provisions for the priority scale base on your daily needs and lifestyle. Understanding the scale of priorities can be a reference in determining how much money needs to be prepare to meet the emergency fund post. For those of you who need an image for emergency fund allocation, here’s an easy way you can follow:
1. For Singles
For those who are single and do not have large installments or dependents, the allocation of an emergency fund can be easier. Because you don’t need to allocate funds outside of your own needs and lifestyle.
At least you prepare a fund of 6 times the amount of monthly expenses for the calculation of the emergency needs fund. Make sure you can stay in preparing this emergency fund. Because it is not uncommon for young people to forget the importance of savings and emergency needs funds.
2. Marrie
It’s different with people who have just marrie. Actually, you can apply it in the way that was done when you were single. The cost burden also becomes lighter, because it can be prepare with a partner.
In real terms, living with a partner will make your needs and lifestyle increase. Therefore, for those of you who have just marrie, make sure to prepare a fund amount of 9 times the amount of stair living expenses in one month to become an emergency fund. It is recommende to allocate funds with a greater level than when you were single.
3. Have a family
When you have a family and have children, of course, the allocation of emergency funds must also be greater than when you were single or newly marrie. If you just have the desire to save an emergency needs fund when you have a family, it will likely be a little difficult to achieve.
But, it never hurts to keep some of the funds for emergency purposes. As the saying goes, it’s better to be late than not to be similar at all. It would be nice, you can prepare an fund of 12 times the essential expenses every month.
Emergency Fund during the Covid-19 Pandemic
At that time, the emergence of the Covid-19 pandemic brought us to very unexpecte and unpredictable times. No one can guarantee whether our monthly income will remain the same as before.
Prone to layoffs is also a burden for employees or workers, as well as for employers who directly of course also get a negative influence from this pandemic period. At least, when you have prepare an emergency fund as early as possible, the fund can help to meet your daily or monthly needs. So, the needs will remain conducive and not be greatly shaken in the next few months by preparing other plans.
Not only for workers, emergency funds can actually be paid in installments for students who are still in college. Students can set aside pocket money given from their parents or the result of side jobs such as freelance.
Surely this will help students during the Covid-19 pandemic era, when parents are experiencing financial cases and you need money for college or daily needs. During the Covid-19 pandemic, at least we all prepare an fund of 12 times the monthly routine expenses. You can set aside 5 percent of the amount of monthly salary income or pocket money for students.
Damasah To Save An Emergency
Some people still use the piggy bank at home to save an fund. Of course, accessibility is an important value in deciding where to store funds for emergency purposes. Not only that, you can save an emergency needs fund conducively here:
Bank Savings
There are other places that are advise to save emergency funds such as in bank savings products. It is recommende not to mix it with your main account. For students such as students, some banks also prepare products such as savings planning.
Storing funds for an emergency atmosphere in a bank is one of the conducive and easily accessible options. However, keeping funds in a bank account can create the risk of inflation that makes the value of money fall.
Money Market Mutual Funds
Money market mutual funds are a conducive investment instrument because they are not volatile in value and liquidity. Storing emergency funds in mutual fund products also has the potential to have greater returns. You can choose money market mutual funds that have low risk. Please start to save an fund from only IDR 100 thousand in this investment instrument.
Read more financial Independenece:
Gold
The ideal and recommende gold as an investment instrument for fund storage is in the form of precious metals or gold bars. Gold can survive inflation and is classifie as quite liquid. In today’s modern era, you are also made easier to run gold buying and selling transactions online, such as Pegadaian Gold Savings in Bareksa. Although it is online, the gold remains physically present and is store conducively in the safe of the Pawnshop.
Deposits
There are deposits that can also be use as a damasah to store emergency funds. You will get a profit every month from deposits that can be use to increase the portion of the fund. When disburse before the tenor ends, there will be a penalty fee that must be paid.
The use of an fund does not only refer to the state of the Covid-19 Pandemic. The funds are also prepare for emergency needs such as other unexpecte disasters. Such as for living expenses when looking for a new job or additional costs when there is a natural disaster.
Well, those are some reviews relate to how much an emergency fund if you have a lot of money left little by little for unexpecte purposes and thank you for your attention.