Preparing an emergency fund is an important step in managing personal finances. For some people, it may still sound complicated or confusing about how to calculate an emergency fund that suits their needs.
However, by understanding simple steps and the right strategy, you can have enough emergency funds to deal with various unexpected situations. The following is a complete guide on how to calculate emergency funds that you need to know.
How to Calculate Emergency Fund
1. Adjust to Family and Work Conditions
How to calculate emergency funds also needs to be adjusted to your personal situation. For example, if you are the head of the family who has dependents of children or other family members, the emergency fund you need may be greater.
On the other hand, if you are single or have no dependents, the amount of emergency fund needed can be slightly lower. In addition, the type of job you have also affects the amount of emergency fund you need to prepare. If your job is unstable or depends on short-term projects, it is better to prepare a larger emergency fund.
On the other hand, if you work in a company with good financial stability and have health insurance or other benefits, you can consider a smaller emergency fund.
2. How to Calculate Emergency Fund Based on Monthly Expenses
The next way to calculate emergency funds is by referring to your monthly expenses. This step is quite easy, namely by calculating the total monthly expenses that include daily living expenses, such as food, transportation, housing bills. After that, you can determine how many months of emergency funds you want to prepare.
For example, if your monthly expenses are Rp 5,000,000 and you want to prepare an emergency fund for 6 months, then you need to save an emergency fund of Rp 30,000,000 (Rp 5,000,000 x 6).
3. Determine a Safe Emergency Fund Storage Place
How to calculate emergency funds is not only limited to calculating the amount, but also the place where it is stored. Make sure your emergency fund is stored in a place that is easily accessible but still safe.
One safe and practical option is digital gold. Digital gold has high liquidity and can be accessed easily through digital investment platforms, so you can access it when needed in an emergency situation.
4. Start Saving and Be Disciplined in the Process
After calculating and planning your emergency fund, the last important step is to start saving and be disciplined in the process. Determine the amount of money that you can set aside every month to build this emergency fund. If necessary, make a financial budget to prioritize emergency fund savings.
It is important to be consistent in saving until your emergency fund is reached. Even if you are only able to save a little, the important thing is to start and continue the process until you reach your goal.
5. Evaluate Periodically and Adjust to Life Changes
After you have successfully calculated your ideal emergency fund, the next step is to monitor and evaluate it regularly. An effective way to calculate an emergency fund is to ensure that the fund remains sufficient for your needs even though living conditions change.
For example, if your expenses increase because you have children or buy a house, your emergency fund needs to be adjusted. Evaluation also needs to be done if there is a change in your job or income. This way, you can ensure that your emergency fund remains relevant to your needs, even when circumstances change.
Build Emergency Fund with Treasury
After understanding how to build an emergency fund, now you may be confused about where to put the right emergency fund money. This is where Treasury comes in to help you. Treasury is a safe and trusted digital gold investment platform that allows you to save your emergency fund in a more profitable way.
By using Treasury, you can easily buy and store digital gold in small or large quantities as needed. In addition, it has high liquidity, meaning you can sell digital gold at any time and convert it into cash if there is an urgent need.
So, start investing in digital gold with Treasury and make sure your emergency fund is always ready when needed!
