Something unexpected happens and because you have an emergency fund, you can handle it quickly. But now, you have to rebuild your emergency savings to ensure you are always ready in case of other emergency events in the future. What do you have to do?
5 Ways to Rebuild Emergency Savings
1. Allocate a budget for emergency savings
Just like when you used to save money to build an emergency fund, now you need to allocate a budget for your emergency savings. Ideally, you can also set a target of how much emergency funds you want to have.
Budget allocation needs to be done so that you remember to always set aside money for emergency savings before it is used for other expenses, especially non-priority ones.
With Jago, you can refill your Emergency Pocket again. You don't need to delete the existing pocket if the money has been used.
2. Temporarily pause other financial goals
Other financial goals are certainly important, but if you have to choose, you should prioritize rebuilding your emergency fund. Actually, which is more important, buying a new cell phone or having an emergency fund?
You've used most or all of your emergency fund and realize how important it is to have an emergency fund. If so, then you can pause other financial goals.
Money can be saved to rebuild an emergency fund first. When you’ve had enough money in your emergency savings according to the target, you can resume saving for other financial goals.
3. Reduce less necessary expenses
If you want to rebuild your emergency savings more quickly, you can start reducing expenses that are less necessary. Try to analyze your current spending.
If you are already using the Jago application, you can take advantage of the Spend Analysis feature. This feature presents data related to your expenses for a month in the form of a diagram and percentages.
In addition, you can also compare the expenses of the current month and the previous month. By looking at your expenses over the last few months, it will be easier to decide which less important expenses you can reduce.
To reduce expenses, you can also collaborate financially with family members or friends. For example, you are not willing to have to unsubscribe from certain streaming services. Just invite some friends to split the bills. Money can be collected in Jago’s Shared Pocket if you want something easy and practical. The money you save can be used to rebuild your emergency fund.
4. Automate saving
To make sure money always goes into your emergency savings every month, you can automate your savings. By doing so, you are also free from the hassle of transferring money to the savings.
You can use the Autosave feature in your Emergency Pocket. It's best if you arrange for the money to be transferred from the Main Pocket at the beginning of the month or immediately after receiving your salary. This way, you minimize the possibility of money being used for other purposes.
5. Earn extra money through side gigs
The last thing you can do is earn extra money. By earning extra money, you can save more. When you can save more, your emergency savings will fill up faster.
Today, there are many side jobs that you can do. If you can find one that matches your interests and expertise, it’s even better. You can do your side job outside working hours or on weekends.
Rebuilding your emergency savings is important to maintain financial stability. So, Jagoans, make sure to replenish every time you use it. It should always be like that.
And, don't forget to use the Jago application to make it easier and more practical in building emergency funds, managing finances and achieving other financial goals. The Jago application can be downloaded here for those who don't have it yet.