Building Your Emergency Fund
How Much?
6-12 months of essential monthly expenses
Example: ₹50K/month expenses = ₹3-6L emergency fund
Where to Keep It?
- Savings Account (₹2-3L): Immediate access, safe
- Liquid Funds (₹2-3L): 5-6% returns, 1-day withdrawal
- Short-term Debt Funds (₹1-2L): Better returns
The Priority
Build emergency fund BEFORE investing for growth. It's the foundation of financial security.