Table of Contents
Start with small targets
Set aside 10 percent of your salary
Separate accounts
Place in liquid instruments
Jakarta, hitclubapk3 Indonesia
—
Emergency fund
often called a financial foundation that must be owned.However, share
sandwich generation
that supports two generations at once, setting up an emergency fund is possible
challenge
yourself.
Especially if your income is limited or expenses are tight.In fact, without an emergency fund, one unexpected event could shake financial stability.
In the midst of demands for
sandwich generation
, do you still need to have an emergency fund?How do I prepare it?
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My Financial Planner Luna Mantyasih Makarti said
sandwich generation
in fact, they are most vulnerable to unexpected events such as parents getting sick or children needing sudden expenses.Hence,
sandwich generation
still need to prepare an emergency fund.
“If there is an urgent need, especially if they lose their job, without an emergency fund they will more easily get into debt or drain other important savings,” he said.
hitclubapk3Indonesia.com
, Friday (7/11).
Likewise, financial planner from Advisor Alliance Group (AAG) Dandy said that behind the large expenses to support the family,
sandwich generation
still need emergency funds.The reason is,
sandwich generation
highly vulnerable to financial risks and their impact not only on themselves, but also on others who depend on them.
Here are tips for preparing an emergency fund:
Start with small targets
Luna suggested
sandwich generation
to start preparing an emergency fund starting from a small target.It can start from as little as a one-time monthly expense.Then gradually increase your emergency fund balance to three times your monthly expenses.
“Then six months of spending, until finally reaching the ideal target, namely 12 months of spending,” he said.
Likewise, Dandy said that an emergency fund could be prepared equal to three to six times monthly expenses.
Set aside 10 percent of your salary
Dandy said
sandwich generation
can do
budgeting
at the beginning of the month.Set aside at least 10 percent of your salary for an emergency fund.However, it doesn’t matter if the funds set aside are only 5 percent of your salary.
“What’s important
habits
it has started to be built until when finances are stable and
budgeting
“We have been disciplined to increase it to 10 percent,” said Dandy.
He suggested using a percentage instead of a nominal amount because if the salary increases, the nominal value will also increase.
Separate accounts
Luna suggests separating emergency fund accounts from daily accounts.
Sandwich generation
he said he could use the automatic transfer method every payday.
“The initial transfer immediately after payday, the principle is ‘set aside first, then spend’, not waste,” he said.
Place in liquid instruments
Dandy suggests placing emergency funds in liquid instruments that can be withdrawn anytime and anywhere.He increases emergency funds not for investment or making a profit, but needs to always be ready to withdraw because emergencies can happen at any time.
One option, continued Dany, is to use digital banks which provide higher interest rates than conventional banks.
“Most are stuck in money market mutual funds, but a maximum of half of emergency funds because it takes time to withdraw,” he said.
Likewise, Luna recommends that emergency funds be placed in instruments that are safe, liquid and easy to access.For example, it is saved in a special savings account at the bank which is easy to withdraw, but not mixed with expenses.Some of the funds, he continued, can be stored in short-term deposits or precious metals as a second layer of reserves.
“If you want a slightly higher yield but still liquid, it can be disbursed in one or three working days, you can save it in the form of money market mutual funds. Avoid risky investments such as shares for emergency funds,” he said.
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(pta)
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