Emergency Fund: Many people are worried about the future but very few prepare to deal with this situation. If we lose our job or face loss in our business, what should we have so that we can bear this problem for a few days? Experts suggest emergency fund as an option for this.

Every person must create an emergency fund according to his own expenses. Having an emergency fund makes people financially strong. However, many people have a question in their mind whether the emergency fund should be kept in the bank or it should be invested.

How much should be the emergency fund?

Even if you lose your job or stop earning money, some money is deposited in the form of a fund so that all your work continues smoothly for a few days. This is called emergency fund. Depending on your expenses and needs, it is advisable to keep an emergency fund equal to your monthly income of 3 to 6 months.

How to handle emergency fund?

Many experts believe that you should keep your emergency fund in a savings account. This is because, you can easily withdraw it from your account during emergency. However, you do not get much interest by keeping funds in a savings account.

In such a situation, you can invest some part of the emergency fund in safe investment options. However, before investing, you should get complete information about withdrawing money. So that you can easily withdraw money during emergency. Also, you should not suffer any kind of financial loss.

You can invest in FD

If you are thinking of depositing some part of your emergency fund in other investment options, then FD can be a good option for you. However, while investing you should choose short term FD. So that you do not have to wait long for money in times of emergency.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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Employed people in India contribute to the Provident Fund Retirement Fund, a social security scheme run by EPFO, for their future. This fund provides financial help to the employee in emergency. Whereas in PF, the contribution of both the employee and the employer is included. At present the government gives 8.15 percent interest on PF account. At the same time, money can also be partially withdrawn from the PF account if needed. You can withdraw money from PF account to repay the loan, in case of any emergency or even for your marriage. In such a situation, let us now tell you how much money you can withdraw from your PF account for your wedding and what the EPFO ​​rules say about it.

for the wedding How much money can be withdrawn from PF account?

• According to the rules of Employee Provident Fund Organization, an employee can withdraw money from the PF account to spend on his own wedding. However, to withdraw money from the PF account for one’s own marriage, the employee has to fulfill certain conditions.
• To withdraw money from PF account for one’s marriage, an employee has to complete at least 7 years of service.
• Apart from this, the employee can withdraw only 50 percent of the total amount deposited in the PF account for his marriage. An employee cannot withdraw the entire amount from the PF account at once for marriage.
• Employees can withdraw money from their PF account for their own marriage and the marriage of their family members. However, for this, permission is given to withdraw 50 percent of the money deposited in the account only three times.

How to withdraw money from PF account?

1. To withdraw money from PF account, first of all you have to go to the official website of EPFO ​​https://unifiedportalmem.epfindia.gov.in/memberinterface.
2. After this, you will have to login to the website by entering UAN number and password.
3. Now you will have to go to the online service and select the claim option.
4. After this, after entering the last four digits of the bank account number and signing the certificate, you will have to click on Proceed to Online Claim.
5. Now you have to enter the number you want to withdraw and upload the scanned copy of bank passbook or cheque.
6. Claim has to be submitted after address verification and entering OTP.
7. Once the claim is submitted and the employer’s permission is received, the money will be transferred to your account.

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Emergency fund: When the situation comes in life, nothing can be said. That is why it is right to always be ready for emergency. When do you need money for what work. So in such a situation you are useful. Savings by you. It is very rare that on such an occasion, a relative is working for you. Therefore, you should always prepare an emergency fund for difficult times in life.

Many people do not have their own home. While doing the job, they also plan to buy a house. If your salary is less than 1 lakh rupees and you want to buy a house. Then how many months you must have an emergency fund. Let us tell you complete information about this.

So much emergency fund is necessary on salary less than 1 lakh

In the uncertainties of life, you should always prepare yourself to avoid difficulties. Many times such difficulties come in your life. Where you do not have an income source. But there are many expenses. Emergency fund is useful on such an occasion. This is the fund when you do not have a job in difficult times or a big expense comes completely. Or suddenly you have to pay a lot of money.

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If your salary is less than 1 lakh rupees. Suppose it is 70 thousand. So you should have an emergency fund of at least 4.2 lakh rupees. Let us tell you that 6 months equal money of anyone’s salary should be kept as emergency fund. At the same time, if you also want to buy a house. Then your emergency fund should be 9 to 12 months instead of 6 months. Because if the house is taken on loan. So EMI will also have to pay the EMAI of your home.

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How to prepare emergency fund?

Preparation of emergency fund is not very difficult. You can transfer a fixed part of your salary i.e. 10 to 20% directly to the emergency fund. Apart from this, you can also do an SIP for this every month. If you are getting a bonus. Or you have received money from somewhere. You can also deposit them directly in the emergency fund. Keep in mind that emergency fund should be such a fund, you can use immediately if needed. It should not happen that it takes time to access the money lying in the emergency fund.

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