A Complete Guide On Emergency Fund
Being prepared for uncertain emergencies like job loss, accident, medical expenses, unexpected travel, is important to keep you and your family SECURE in the long run.
A Complete Guide On Emergency Fund
Being prepared for uncertain emergencies like job loss, accident, medical expenses, unexpected travel, is important to keep you and your family SECURE in the long run.
.
.
Message/Call or comment below if you have any queries relating to emergency fund
1. IMPORTANCE OF EMERGENCY FUND
An emergency fund is an essential corpus* that you must keep aside to tackle emergencies. It is a fund that you can fall back on at the hour of crisis or for unexpected and unplanned expenses.
2. ALWAYS KEEP EMERGENCY FUND LIQUID
You should be able to withdraw the money when you need it and with no delay. At the same time, you should ensure that you do not get penalized in the form of an exit load or pre-withdrawal penalty.
3. HOW TO BUILD AN EMERGENCY FUND
An emergency fund cannot be built overnight but is done gradually. Set aside a particular amount every month in a different bank account. Let's say, you have decided to have an emergency fund of Rs.1 lakh. In this case, you can set aside Rs.5,000 or Rs.10,000 every month to accumulate the corpus you need.
4. WHERE TO INVEST AN EMERGENCY FUND
Even though an emergency fund should be liquid, it is not something you can access often. Hence, invest it in a manner that you earn decent returns from it without compromising on liquidity. The ideal thing to do would be to spread the emergency fund across liquid funds, short-term RDs*, and debt mutual funds.
