Life is full of surprises. Some surprises are pleasant and some are less pleasant, like emergencies. Unfortunately, we can't choose so that an emergency doesn't happen to us. The best thing we can do is prepare. You can start with building an emergency fund.
To make it easy for you to start saving for an emergency fund, Jago will tell you 4 steps you can take to make it happen.
4 Steps to Realizing the Goal of Building an Emergency Fund
1. Start small
Starting something that you've never done before will feel heavy, especially if you set a big target. It's the same with saving an emergency fund.
You can start saving small to get used to it. The important thing is that there is money set aside for savings. When the target is achieved, you will be motivated to save a larger amount.
Another important key is discipline and consistency, no matter how much you save.
2. Choose a place to save your emergency fund
It's best if you have a separate place to save your emergency fund. Do not combine it with your other savings as the emergency fund may be used for daily needs.
Because the purpose of saving an emergency fund is to use it only during an emergency, you can keep it in a safe place that doesn't make you tempted to spend it.
You can try saving an emergency fund in a Locked Pocket in the Jago application. Not only does it help to keep away the temptation of consumptive shopping, the Locked Pocket can give you interest up to 4% p.a.*
3. Automate savings
Saving for an emergency fund doesn't have to be a hassle. You just have to set it so that saving is automatic. This way, you don't feel the burden of saving at all.
If you use the Jago application, you can automatically transfer from your main account to your emergency fund savings using the Plan Ahead and automatic transfer features.
4. Keep on building your emergency fund
Even though the target for saving for an emergency fund has been achieved and the emergency fund has never been used at all, there is nothing wrong with continuing to save.
In addition to being unpredictable when an emergency will occur, the cost of living is also likely to continue to increase over time. After all, you’ve got nothing to lose if you have an emergency fund.
Let's start taking steps to building an emergency fund. Download the Jago application, if you don’t have it yet, to help you save for an emergency fund and manage finances better.
*Interest rate can change at any time in accordance with BI interest rates & LPS policy