Many people hesitate to create a separate account specifically for an emergency fund because they feel like their money becomes "dead" and completely unusable. As a result, all their money ends up lumped into a single daily spending account.
The problem is, whenever there’s an e-commerce sale, a promo on vacation tickets, or an invitation to hang out, that savings money slowly gets chipped away until there's nothing left. When an emergency strikes, like a work laptop suddenly breaking or a family member falling ill, the panic sets in because there is no backup fund available.
The solution isn't to make your finances rigid, but rather to have a versatile savings account: one that grows every month, remains flexible, yet stays protected by a system so it’s automatically ready to serve as an emergency fund when needed.
How can you set this up using the Locked Pocket? Check out the practical guide below.
The 2-in-1 Savings Concept with Bank Jago's Locked Pocket: One Savings Account, Two Functions
Combining the function of a routine savings account and an emergency fund is actually very flexible once you know how to split it. Your total savings can be divided into two parts:
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Part 1: Saving Pocket (Ready-to-Use or 100% Liquid)
This portion is used for small-scale unexpected needs or short-term savings.
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Part 2: Locked Pocket (Main Emergency Fund Fortress)
This portion locks away your main balance so it remains untouched by daily shopping, while still being accessible if a crisis occurs.
This way, you don't have to feel like you're losing your hard-earned salary. The money remains yours and can grow with competitive interest or returns.
Advantages of the Jago Locked Pocket for Savings and Emergency Funds
Keeping a versatile savings account in a Locked Pocket offers three psychological and technical advantages that regular savings accounts lack:
1. Avoids Misallocating Money (Mental Accounting Error)
When savings are merged into your daily spending account, your brain treats that balance as idle cash available for spending. Moving your main savings portion into a Locked Pocket automatically shields it from impulsive shopping urges.
2. Flexible Short Locking Durations Starting from 14 Days
Many people dislike locking away their savings out of fear that their money will be held up for 1 to 2 years. In Jago, you can lock your savings for short periods: 14 days, 1 month, or 3 months.
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If the current month is free of unexpected expenses, the lock can be automatically extended (auto-rollover) while you continue to earn interest.
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If an emergency arises next month, your funds are ready to use as soon as the lock duration ends.
3. Maximizes Your Interest Earnings
While waiting for your savings to build up into an ideal emergency fund (at least 3 to 6 times your monthly expenses), your money works to earn competitive interest. Your savings grow automatically without needing to be exposed to high-risk investment instruments.
Guide to Building an Emergency Savings Fund in the Jago Application
Here are 3 practical steps you can follow directly in the Jago application:
Step 1: Create a Dedicated Pocket for Savings and Emergency Funds
Open the Jago application, create new Saving Pockets, and give them clear names. For example: Main Savings and Emergency Fund. Clear naming is important so you think twice before spending those funds on non-essential needs.
Step 2: Apply the Split-Lock Method
To keep your savings feeling liquid yet secure, divide the balance between two places:
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Keep 30 percent in a regular unlocked Saving Pocket to cover small-scale sudden costs, such as phone repairs or buying medicine.
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Keep 70 percent in a Locked Pocket with a duration of 14 days, 1 month, or 3 months. This 70 percent portion acts as your Main Emergency Fund Fortress.
Step 3: Secure Every Payday with Auto-Budgeting
Don't wait for leftover money at the end of the month to save. Activate the Auto-Budgeting feature in the Jago application. Set it up so that on every payday, the system automatically transfers 10 to 20 percent from your Main Pocket directly to your Savings and Emergency Fund Pocket.
Conclusion
Saving doesn't have to make your life feel rigid or overly restricted. By moving a portion of your routine savings into a Jago Locked Pocket, you achieve two benefits at once: savings that continuously grow and an emergency fund that is always ready to protect you.
Open your Jago application now, set up your first Locked Pocket, and experience the peace of mind that comes with having savings safe from daily temptations!
