Emergency Fund — Your Financial Safety Net
An emergency fund covers unexpected expenses without touching investments or taking loans.
How Much Do You Need?
| Monthly Expenses | 3 Months (Min) | 6 Months (Ideal) | 12 Months (Best) |
|---|
| ₹20,000 | ₹60,000 | ₹1,20,000 | ₹2,40,000 |
| ₹30,000 | ₹90,000 | ₹1,80,000 | ₹3,60,000 |
| ₹50,000 | ₹1,50,000 | ₹3,00,000 | ₹6,00,000 |
| ₹75,000 | ₹2,25,000 | ₹4,50,000 | ₹9,00,000 |
Where to Keep It
High-yield savings account (5-6% interest), liquid mutual fund, or sweep-in FD. Never invest emergency fund in stocks or long-term FDs.
Build yours today: Complete Guide
📐 Methodology & Sources
All calculations use standard financial formulas. SIP returns use compound interest formula: FV = PMT × [((1+r)^n - 1) / r]. EMI uses: EMI = P × r × (1+r)^n / [(1+r)^n - 1]. Tax calculations follow Income Tax Act provisions for the current assessment year. Insurance premiums are indicative market averages.
Sources: RBI, SEBI, Income Tax Department of India, CIBIL, IRDA, LIC of India. Data verified as of Aug 2026.
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