What is Financial Emergency?
Financial emergency is any unexpected situation that requires money you didn’t plan to spend. It can be a layoff, a health problem, a car repair or a broken appliance.
Common Examples
- Job loss (need 3-6 months of expenses)
- Medical emergency (surgery, treatment)
- Car repair (R$ 2.000-5.000)
- Broken appliance (refrigerator, washing machine)
- Property problem (leak, plumbing)
- Unexpected fine or tax
How to Prepare
The best protection against financial emergencies is the emergency reserve:
- 6 months of expenses for CLT
- 12 months for self-employed/individual entrepreneurs
- In investments with daily liquidity (Tesouro Selic, CDB)
What to Do if You Don’t Have a Reserve
If the emergency arrives and you don’t have a reserve:
- Don’t use overdraft (interest rates of 15%/month)
- Don’t use credit card revolving (interest rates of 16%/month)
- Request a payroll loan (interest rates of 1-2%/month)
- Anticipate FGTS or 13th salary
- Sell something you don’t use (marketplace)
- Negotiate direct installment with the creditor
Prevention
After resolving the emergency, prioritize building your emergency reserve. Start with R$ 1.000 (already covers most small unexpected expenses) and increase it up to 6 months of expenses.