Expenditure of IDR 5 Million per Month, How Much Emergency Fund Should Be Prepared?

JAKARTA, KOMPAS.com – The Covid-19 pandemic has an impact on the global economy. Many countries, including Indonesia, have fallen into the abyss recession the economy.

The sluggish economy has caused many companies to lay off their employees.

Related to that, Financial Consultant Prita Hapsari Ghozie reminded the importance dana emergency to deal with unexpected possibilities including an economic recession.

“In particular emergency fund it is used to deal with various unexpected conditions in life. Usually when there is a recession people will look for ways to be safe, for that people must tighten their emergency funds, “he said in a virtual media briefing Tokopedia, Wednesday (14/10/2020).

Also read: Emergency Fund Urgency for Freelancers

According to him, the amount of emergency funds that must be prepared is 12 times spending monthly routine.

” Spending We are multiplied by 12, which means that if our routine expenditure is Rp. 5 million, then the emergency fund we have to make is Rp. 60 million. That’s enough safe-lah, for the household budget, “he said.

Prita said the emergency fund could be temporarily stored in investment instruments, such as money market mutual funds. So that the emergency fund can grow before it is withdrawn or used.

He reminded that the selection of instruments needs to be considered carefully so that the targeted targets are as expected.

“So if you choose, you have to be careful. Being able to allocate gold is also not a problem. At least we know the risks or pros and cons of the instruments we choose,” he explained.

Also read: Want to Prepare an Emergency Fund? This Must Be Watched

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