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Find out how much you need to save for financial security. Based on your monthly expenses and employment type, we calculate your ideal emergency fund target.
Recommended: 6 months of expenses
Recommended Fund
₹1,80,00050.0% of total
Current Savings
₹50,00027.8% of total
Gap to Fill
₹1,30,00072.2% of total
Save ₹1,30,000 more to reach your 6-month emergency fund target.
An emergency fund is your first line of financial defense. It's a dedicated savings account that covers 6 to 12 months of essential living expenses, designed to protect you from life's unexpected events like job loss, medical emergencies, or urgent home repairs.
Without an emergency fund, you may be forced to sell investments at a loss, take high-interest loans, or dip into retirement savings when unexpected expenses arise. A well-funded emergency buffer ensures your long-term investment plan stays on track, even during financial shocks.
| Employment Type | Recommended Months | Why |
|---|---|---|
| Salaried Employee | 6 months | Notice period + severance provides partial buffer; lower income volatility |
| Self-Employed | 9 months | Irregular income; longer time needed to find new clients |
| Business Owner | 12 months | Highest income volatility; personal and business expenses may overlap |
Your emergency fund should be in a liquid, low-risk, and easily accessible account. Good options include high-interest savings accounts (3-4% interest), liquid mutual funds, or sweep-in fixed deposits. Avoid investing it in equity, real estate, or long-term FDs with penalty for early withdrawal.
An emergency fund is a savings buffer that covers unexpected expenses like medical emergencies, job loss, or urgent home repairs. It's the foundation of any financial plan and should be set up before investing.
The recommended amount varies by employment type: 6 months of expenses for salaried employees, 9 months for self-employed individuals, and 12 months for business owners. These timelines account for the stability of your income source.
Keep your emergency fund in a liquid, easily accessible account. Options include a high-interest savings account, liquid mutual funds, or sweep-in FD accounts. Avoid locking it in fixed deposits or investing it in equity.
No. An emergency fund must be immediately accessible without market risk. Investing it defeats its purpose. Keep it in safe, liquid instruments and build a separate investment portfolio for wealth creation.
A monthly shortage fund covers day-to-day cash flow gaps (1 month of expenses), while an emergency fund is a larger buffer (6-12 months) for major unexpected events. Build the shortage fund first, then the emergency fund.