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.
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