Mr. Jagdish Jha is the founder of JSMC Classes &Consultancy LLP, a Pune-based company has the core mission to Educate individuals to create Income as well as Wealth by imparting Simple and Best Knowledge through Stock Market Classes.
Read MoreEmergency Fund
What is an emergency fund?
An emergency fund is money you set aside specifically to cover unexpected expenses or financial emergencies. Think of it as a financial safety net. It helps you avoid going into debt when life throws surprises your way — like:
Losing your job
Medical emergencies
Car or home repairs
Unexpected travel costs (like a family emergency)
A good rule of thumb is to save 3 to 6 months’ worth of living expenses in your emergency fund. That means enough to cover rent/mortgage, food, utilities, insurance, transportation, and other essentials.
Where to keep it? Ideally in a separate, easily accessible savings account (like a high-yield savings account), so it’s not mixed with everyday spending money — but you can still get to it quickly when needed.
Want help figuring out how much you should aim for in your emergency fund?
