MANILA, Philippines — With the monsoon season in the Philippines, fintech firm and virtual credit wallet Mocasa is offering advice to the public on how to prepare a calamity fund.
A calamity fund is meant to provide financial relief in the middle of natural disasters, particularly when they strike with little to no warning, making sure people have the resources to recover.
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It helps to first assess the potential risks in one's area when it comes to disasters, which may include typhoons, flooding, and earthquakes. This risk assessment step can specify the expenses needed when incidents, such as natural disasters, occur.
Mocasa advised setting aside three to six months' worth of living expenses in a calamity fund to cover essentials like repairs, medical costs, and temporary living arrangements, though the amount can vary among individuals.
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Another tip is setting up automatic transfers from one's paycheck to a separate savings account or the planned calamity fund so that one does not need to worry about overspending when there are savings to be collected.
It helps to monitor one's calamity fund to make sure it is adequate to one's need, as financial situations and risk environments can change on a dime. It is advised to adjust savings and strategies when necessary.
The fintech firm has ways of helping personal calamity funds like its Quick Loan feature, where loanees can borrow up to P25,000 that are payable in three monthly installments, and offers quick access to funds when one's savings are not enough or when dire assistance is needed.
Mocasa recently waived its penalty fee on overdue loans until August 4 in light of the damages brought by Super Typhoon "Carina." This initiative can redirect users' savings for more immediate expenses.
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