Emergency fund using gold sounds interesting, doesn’t it? Maybe you are used to preparing emergency funds using cash. So far, cash has been the first choice because of its ease of access. However, cash has the disadvantage that over time it will be eroded by inflation.
Therefore, gold is gaining popularity as an alternative emergency fund that is more stable and has long-term value. As a precious metal that has been used for a long time, gold has proven to hold its value even in the midst of an economic crisis.
As time goes by, it is not only cash that has easy access. However, gold can also be easily accessed as an emergency fund as well as an investment, namely using digital gold.
If you want to start using gold as an emergency fund, here are five ways you can do it.
1. Divert Part of Income to Buy Gold
The first step in making an emergency fund using gold is to consistently set aside some income to buy gold. You don’t need to buy a large amount right away, because currently there are various gold savings services that allow you to buy gold in small amounts.
By setting aside funds periodically, for example 5-10% of your monthly income, you can collect gold gradually. The advantage of this method is the flexibility that you can adjust the amount of gold purchases to your financial condition. That way, emergency funds using gold are ready to be collected.
2. Monitor the Development of Gold Prices Periodically
Gold prices tend to be stable in the long run, but can experience daily fluctuations. To maximize the value of your emergency fund, you can monitor the price of gold and buy when the price drops.
However, remember that the main purpose of gold as an emergency fund is stability, not speculation or quick buying and selling. So, avoid buying and selling too often just to take short-term profits.
3. Avoid Unnecessary Expenses
Managing an emergency fund using gold is easy if you are able to allocate more funds for gold savings, you need to manage your finances wisely, including avoiding unnecessary expenses.
Re-evaluate your spending habits and identify expenses that can actually be reduced or eliminated.
For example, limit the purchase of non-urgent consumer goods, reduce the frequency of eating out, or take advantage of discounts and promos for daily needs. By reducing unnecessary expenses, you can allocate more funds to buy gold, so that emergency funds using gold can be collected faster.
4. Understanding Gold Disbursement Strategies
When an emergency situation occurs, you must be able to access funds quickly. Make sure you understand the gold disbursement procedure, both physical and digital. So that it is easy to disburse emergency funds using gold
For physical gold, know the nearest gold trading places that provide fair prices and have a good reputation. Also make sure you understand the process of verification and sale of gold to avoid losses.
For digital gold, make sure the sales process and transfer of funds to the account runs smoothly. Choose a platform that has an instant disbursement feature and low transaction fees so that you can get funds as quickly as possible when needed.
By preparing this strategy, emergency funds using gold can be disbursed in a short time when needed, without significant obstacles.
5. Choosing the Right Gold for Emergency Fund
It is important to choose an emergency fund using gold. You can choose between physical gold (such as coins or bars) or digital gold. Physical gold is suitable for those who want to have tangible assets,
but need to consider the cost of storage and security. Digital gold, on the other hand, is more practical as it can be bought in small denominations, easily traded, and does not require special storage.
Make sure the gold you buy has a certificate of authenticity, especially if you choose physical gold. For emergency funds, you should choose gold with high liquidity, such as 1 gram or 5 gram gold bars, so that it is easy to withdraw when needed.
Using emergency funds with gold is a smart alternative to protect the value of assets from inflation and maintain financial stability. By diverting some of your income to buy gold, monitoring gold prices regularly, and managing expenses wisely, you can build your emergency fund more effectively.
