BUSINESS
Five Steps to Collect Emergency Funds, the Fifth is the Most Important
Seatoday.com – Jakarta. Collecting emergency funds is important if there is an unplanned event. The way to collect emergency funds can be different for each person. These are five steps that we can do.
1. Calculate monthly income and expenses in detail
Before setting aside emergency funds, we need to calculate and consider monthly income and expenses. It is easier for us to see details of our funds that are safe to set aside. Consider expenses for primary needs, installments, insurance and bills.
2. Set aside a certain amount of funds gradually
Setting aside emergency funds can be done in stages. Avoid directly targeting too big. This is to lighten the financial burden. This fund can be increased if there is more income each month.
3. Save funds in a special account
Separating accounts for emergency funds from savings is usually done to avoid mixing which makes you confused when you need it. This step also helps to review financial conditions.
4. Include monthly expenses
Enter emergency funds as monthly expenses. Determine the required amount of funds that must be set aside. If there is money left over from the previous month, you can also add it to a special emergency fund account.
5. Avoid buying things with emergency funds
Buying unnecessary things using emergency funds, needs to be avoided. If it becomes a habit, sometimes we often forgive ourselves for not setting aside emergency funds. Don't be tempted by the discounts offered around us. Without realizing it, our emergency funds will be reduced for less useful things.
Some of these tips can help manage emergency funds. Do it consistently and with discipline so you don't need to worry if something unexpected happens and requires large funds.
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