Emergency Fund

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All about Emergency Funds

Most experts believe you should have enough money in your emergency fund to cover at least 6 to 8 months' worth of living expenses. What does that look like? Start by estimating your costs for essential expenses, such as: Housing, Food, Health care (including insurance) Utilities, Transportation, Personal expenses, Debt servicing (EMIs). You don't need to include expenses for anything you'd cut from your budget in the event of a job loss or major catastrophe. For example: Entertainment, Dining out, Non essential shopping, Vacations, Savings for a second home or other expenses. Decide if you need to save more. Putting aside 6 to 8 months' worth of expenses is a good rule of thumb, but sometimes it's not enough. If you're able, you might want to think about expanding your emergency savings.

Here are some scenarios where having more in your savings could benefit you: During a recession (when unemployment rates are higher and the length of unemployment is often longer). If you're in a high-risk industry where layoffs are common. You can build up to it by stashing away smaller amounts on a regular basis, like every week or every pay check.

There are various mutual fund schemes which gives you better than saving account returns with the liquidity of savings account and even can be used to pay to network hospitals or can be used to pay directly to the merchant having the swipe machine.

How much should you have saved?

Start by estimating your costs for essential expenses

Monthly Expenses
Amount in Rs
Housing
Food
Health Care (including insurance)
Utilities (water, electricity, etc.)
Transportation
Personal Expenses
Debt Servicing (EMIs) & Investments (SIPs, etc.)
Total Monthly Expenses
Rs
You should have Rs. in any of the
‘Liquid Mutual Fund Scheme’ for your emergency requirements
Invest through NSE
Member code: MFS88253
ASSOCIATION OF MUTUAL FUNDS OF INDIA REGISTERED
MUTUAL FUND DISTRIBUTOR ARN : 88253
Invest through BSE
Member code : 20980
Company Identification Number(CIN)
AAB-1050
DISCLAIMER : www.fincarecapital.com is an online website of Fincare Capital Management Services Llp who is registered vide ARN- 88253 as a Fund distributor. The said website is just an electronic presentation of financial planning for self help by investors. This site should not be treated as a financial advisory website as we do not charge for any calculation or results produced here. The website do not guarantees any returns or financial goal success by any means.