Emergency Fund

What is emergency fund? 

• Readily available source to help you solve financial crises due to unexpected reasons. (Sudden job loss, medical emergencies, an accident, unexpected needs)

• Improve financial security by creating highly liquid cash to meet any emergency and reduce the use of unsecured loans.

• Important part of financial planning. It can help you avoid debt, protect your credit score, and reduce stress

How much needed?

• 6-12 months of living expenses including EMI

Where to Invest?

• Savings A/C (Separate from regular use)

• FD (Bank) 

• Liquid Funds

• Credit cards (use only as a last option)

Using Emergency Fund -Follow below check list. Read more here

• Is it an emergency?

• Is it a need or a want?

• Do you need it now?

So only when in an emergency, this money should be used.

• Are you prepared?

• Have you set aside enough money, for an emergency? 

• If yes, how fast can you access this money? 

• Can your family access this money, if you are not around? 

• If yes, How much and how fast can they access this money?