US financial advisors and money experts recommend most Americans have a dedicated emergency fund. But it’s arguably even more essential for immigrants. Not only is it important to have funds on hand to cover expenses in case of job loss (experts advise at least six months of bills and other expenses), but immigrants face unique circumstances that could potentially require unexpected payouts.
Health care
An unexpected trip to the emergency room or a surprise medical diagnosis can result in large medical bills — especially for those who are uninsured. An emergency fund can help ensure you get the treatment you need and deserve without eating away at your monthly budget.
Immigration issues
From securing a green card to applying for citizenship, many steps in the immigration process require a processing fee — and that’s just the paperwork. Doctor’s appointments, photos, rush fees and other unexpected costs often take immigrants by surprise. Also, remember that unlike with other legal issues, immigration lawyers aren’t provided by the government for free. While expensive, they can be extremely helpful when navigating complicated immigration issues and deportation problems.
Family emergencies
Living away from family and friends is challenging, but few things are as hard as being away during a moment of crisis. Having extra funds on hand for a last-minute trip home during a difficult time is the difference between booking that plane fare or supporting loved ones from afar.
Sometimes, it’s not your presence that’s required — it’s financial support. Having an emergency fund means you can help loved ones through Pangea. The safe, secure money transfer app allows you to instantly deposit money directly into a loved one’s bank account or debit card or pay their bills with just a few clicks.
While the idea of setting aside a large sum of money is daunting, there are a few steps you can take to make the process so simple and seamless, that you almost forget about it — until you need it.
Open a dedicated bank account for your emergency fund.
Many banks will accept a variety of identification sources to open an account, including an Individual Taxpayer ID Form (ITID), a passport number or another government-issued ID from a foreign country. Set up an account that’s separate from your main source, and select controls that make it harder to access the money, so it has the chance to grow. (Not setting up a debit card for the account, for example.) Also consider seeking out a high-yield account, which will collect more interest while it sits.
Deposit a set amount per month, no matter how much.
Setting aside even $5-$10 a month may not seem like much. But when you’re not touching it, that money can accumulate quickly. Set up a monthly transfer or deposit to ensure your account keeps building. Bonus: a dedicated monthly deposit could also work to keep your account free, as set deposits can eliminate monthly fees on certain accounts.
A few quick, strategic decisions can make sure you’re building that emergency fund, allowing you to provide for yourself and your family when you need it most.
