By Admin 
Emergency Fund Rule India: Anyone who is employed or has a business may suddenly need money. Investing habits help you meet these needs. However, finance experts advise every person to create an emergency fund as per his needs. Because there is always a risk of job loss and ups and downs in business.
Income stops but expenses continue as before, in such a situation the emergency fund created by you proves to be the most helpful companion. Let us know how much emergency fund should be there as per work culture and requirements.
Keep these things in mind before creating an emergency fund
Emergency fund money is not the same for all people. It depends on what your income is. How stable is your job or business and how many people in the family are you responsible for?
Keeping too little emergency fund can lead to problems in difficult times. Therefore, emergency fund should be created keeping these things in mind.
3 and 6 month emergency fund
An emergency fund equal to 3 months’ expenses should be created for those who are unmarried. Also those who do not have the burden of loan or EMI. Such people can create an emergency fund of 3 months. Almost all the needs can be easily fulfilled with this fund.
At the same time, more security is necessary for those who live with family. In such a situation, it is considered better to keep an emergency fund equal to about 6 months of expenses. So that responsibilities like rent or EMI, ration, utility bills, school fees, insurance and medical needs can be fulfilled.
12 month emergency fund
If you do not work and your business is not stable, then you should create an emergency fund of at least 9 to 12 months. Because your family is completely dependent on you and if your income is not fixed then you may be in trouble without an emergency fund.
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