The name itself holds the meaning and purpose of this fund.
The fund that you allocate specifically for the purpose of emergencies is called as emergency fund.
Emergency fund is the money that you need to survive for yourself when you have no other income for your survival.
For emergency fund, only count the money that is needed for your essentials that you can’t live without. You don’t have to count the money that you spend on your “Wants” into your emergency fund.
If you want an six month emergency fund, then multiply the amount of money you need to survive for a month with six.
You need atleast six to twelve month emergency fund for your safety.
Safeguarding ourselves and our family is the first thing you need to do – before you take any financial risks with your money.
