As the monsoon season descends on the Philippines, the fintech firm and virtual credit wallet Mocasa is advising the public on how to prepare a calamity fund.
A calamity fund is intended to provide financial relief during natural disasters, which often strike with little to no warning. It is essential to assess the potential risks in one’s area, including typhoons, flooding, and earthquakes, to determine the expenses needed when such incidents occur, and such a fund can help ensure that people have the necessary resources to recover.
Mocasa recommends 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. The specific amount may vary depending on individual circumstances.
Setting up automatic transfers from one’s paycheck to a separate savings account or the planned calamity fund is another helpful tip from the digital lender, ensuring that savings are consistently collected without the risk of overspending.
It is important to regularly monitor one’s calamity fund to ensure it meets current needs, as financial situations and risk environments can change rapidly. Adjusting savings and strategies when necessary is advised.
Mocasa offers support for personal calamity funds through its Quick Loan feature, allowing loanees to borrow up to P25,000, payable in three monthly installments, providing quick access to funds when savings are insufficient or immediate assistance is required.
In response to the damages caused by Super Typhoon “Carina,” Mocasa has waived its penalty fee on overdue loans until August 4, helping users redirect savings towards more urgent expenses.
Featured image credit: Edited from Mocasa
