The Reasons Why Emergency Fund is Very Essential


There are still a few people who do not recognize the importance of emergency fund. They don’t make financial plan for any unpredictable needs in the future. Actually, emergency fund must be prepared by every single people. You have to notice that your income is not only allocated for monthly needs. There are still some unpredictable needs which must be afforded in the future. These are some unpredictable moments which really need emergency fund.

You are not allowed to ignore the importance of health fund. Even you are okay right now, you have to realize that sickness or any incident can be happen for tomorrow. If you allocated all of monthly salary for your daily needs, it must be difficult to prepare the emergency fund for health. You can make smart financial by separating 10-20% of your salary for the emergency fund.

Besides preparing emergency fund for your health, this fund is also essential to deal with property and vehicle maintenances. You have to realize that car and motorcycle need reparation. While be repaired, there must be some spare parts which must be replaced by the new one. Moreover, your house also needs treatment after facing the changes of season and climate. In order to let all the things in good condition, the emergency fund can save your household financial. Therefore, please prepare your emergency funds to face the unpredictable situations.

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I'm Burhan Turnip, an investment junkie based in Jakarta, Indonesia. This is my take on writing Indonesia investor blog. Let's break down investing topics in Indonesia. Get in touch with me via burhanturnip [at] gmail [dot] com

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