Emergency Fund: Often people save some money with them. For treatment, children’s education and other small expenses that occur in life. People prepare funds for them. But many times in life such situations arise where you suddenly need more money.
People often do not have enough funds for a sudden emergency. That is why many times they have to face problems. It is important for everyone to have an emergency fund. Which comes in handy in difficult times. Let us tell you how you can create a good emergency fund by making small savings.
Prepare an emergency fund like this
According to experts, one should keep money equivalent to 6 months of expenses in emergency fund. So that if an emergency arises suddenly, you do not have to face any problem and your work can continue. Often, we face many expenses in a month.
For which we keep separate money. The money that remains with you after these expenses, you can invest it in emergency fund. Apart from this, if you want, you can keep investing a fixed part of your salary in emergency fund every month. Keep saving in emergency fund by cutting down unnecessary expenses.
Keep increasing the fund like this
Many times it happens that you suddenly get a lot of money. Like you get a bonus or a tax refund. You can deposit this amount directly in the emergency fund. So that if in any month you do not have money to deposit in the emergency fund, then your emergency fund is not affected and it keeps on increasing continuously.
You can invest in these places
As an emergency fund, you can invest in mutual funds. You can also do FD. Apart from this, you can also invest in a saving scheme. But take special care that the money is invested in such a place where it can be withdrawn immediately if needed.