Use Your June Bonus to Build an Emergency Fund, Experts Advise

The upcoming "aguinaldo," or mandatory year-end bonus, payment in June offers a prime opportunity for individuals to strategically establish an emergency fund. This income, equivalent to 50% of an employee's highest monthly salary in the semester, can serve as a crucial financial cushion against unforeseen events.

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An emergency fund is, essentially, a financial 'safety net'.

Damián Vlassich, Investment Strategies Team Leader at IOL, describes an emergency fund as a financial safety net. He emphasizes that this capital should be kept separate from daily savings or long-term investments. Its primary purpose is to cover unexpected costs, such as medical issues, car repairs, home maintenance, or temporary income loss, without resorting to high-interest credit card debt or personal loans.

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Its main function is to provide peace of mind and stability: it serves as a containment barrier so that an unexpected blow does not destabilize family finances or force the dismantling of long-term investments at a bad market moment.

Paula Spitaleri, Director of Balanz Academy, views the aguinaldo as the ideal moment to initiate building an emergency fund without impacting daily finances. She notes that this extraordinary income is often psychologically easier to set aside before it gets absorbed into regular spending. "It's money that didn't exist in the usual flow, and that psychologically facilitates separating it before it gets diluted in daily expenses," she explained.

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The aguinaldo is the ideal time to take the first step towards an emergency fund, without sacrificing day-to-day life.

Experts advise tailoring the emergency fund's size to income stability. For those with fixed salaries and stable jobs, the fund should ideally cover three months of essential expenses. Freelancers or those with irregular incomes should aim for six months. However, Spitaleri stresses that starting is key, and even allocating 30% of the aguinaldo can create a substantial safety net. Vlassich adds that consistency and the fund's designated purpose are more critical than the initial amount, recommending setting achievable short-term goals.

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The separation of money is what makes the purpose sustainable over time.