Surviving the PPKM Period With Emergency Funds

Currently, the government has determined that PPKM will continue until September 6, 2021. This is done by the government to improve the pandemic situation in our beloved country.

Unfortunately, for some people, PPKM is felt to be burdensome, where the money that comes in is getting less or even stops, but daily or monthly expenses remain as usual.

As a result, many people have to survive with modest savings, close their businesses, go out of business, or even sell the various assets they own. They had to do all of this to survive during the pandemic.

It is at times like this that the Emergency Fund plays an important role in one's financial management.

What is an Emergency Fund?

As the name suggests, the Emergency Fund is a fund that we prepare for emergencies. What is meant by an emergency here are illness, accident, layoffs, sudden needs, and so on. One of them, yes, is like the current PPKM.

Maybe many people have often heard of an emergency fund since before the pandemic. However, at that time there were still many people who did not understand the importance of an emergency fund. Various information and writings about emergency funds pass by, not being noticed let alone put into practice.

There are still many of our people who think that saving is only done when you want to buy something. Want to buy a car? Save first. Want to travel, save first. Want to buy a house, save first.

If you don't have anything to buy yet, why save?

Though, it shouldn't be. We need to save for a purpose, but saving is not only done when we want to buy something. We also have to save just in case, especially for circumstances like now.

After the pandemic, only then did some people realize the importance of financial management. People only realized when the situation was tight, regretting why they had not saved earlier.

Especially during PPKM times like this, when people's income decreases or even stops, that's when the emergency fund becomes a hero.

With an emergency fund, we can last at least a few months until the situation improves. But for those who previously didn't have an emergency fund, in the end, they were forced to mortgage or even sell their assets, get into debt, and so on.

Is the benefit of an emergency fund only that?

No. There are many other benefits of an emergency fund, including:

1. Make our lives feel safer

With an emergency fund, we will feel safer and not fear hunger. Especially during a pandemic like this, feeling safe is a very extraordinary gift.

We are already quite dizzy and worried about the spread of the coronavirus and its various impacts, don't we still want to mess around with our financial condition?

2. Become a backup when you need large amounts of funds

We as humans are often confused and experience things that are beyond our expectations. Especially during a pandemic where the situation and conditions around us can change very quickly.

For example, we suddenly need a large enough fund for hospital costs. Of course, we can use an emergency fund to meet these needs. Or suddenly we have to service the car because of an accident, we can also use an emergency fund.

3. Become a solution when there is an opportunity that should not be missed

Have you ever seen a rare opportunity, but we had to miss it due to a lack of funds? Well, an emergency fund is the solution.

Often we get a good momentum, for example in the form of a very cheap price discount. Eh, someone else went first or couldn't even buy it because there was no money. God willing, things like that won't happen if we have an emergency fund.

Are you aware of the importance of an emergency fund? Let's start preparing an emergency fund starting now!