Emergency Fund: No one can say what kind of situation may arise in life. That is why it is always better to be prepared for an emergency. You may need money for some work. In such a situation, your savings come in handy. It is very rare that a relative or a friend comes in handy in such a situation. That is why you should always keep an emergency fund ready for difficult times.
Many people do not have their own house. While working, they also plan to buy a house. If your salary is less than Rs 1 lakh and you want to buy a house, then how many months of emergency fund do you need to have? Let us tell you complete information about this.
This much emergency fund is necessary for a salary of 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 a source of income. But you have a lot of expenses. Emergency fund comes in handy at such times. This is the fund that comes in difficult times when you lose your job or a big expense comes up suddenly. Or you have to pay a lot of money suddenly.
If your salary is less than Rs 1 lakh. Suppose it is 70 thousand. Then you should have an emergency fund of at least Rs 4.2 lakh. Let us tell you that one should keep money equal to 6 months of salary as an emergency fund. On the other hand, if you also want to buy a house. Then your emergency fund should be for 9 to 12 months instead of 6 months. Because if the house is taken on loan. Then you will have to pay EMI of your house as well.
How to prepare an emergency fund?
Creating an emergency fund is not a very difficult task. 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 a SIP for this every month. If you are getting a bonus. Or you have received money from somewhere together. You can also deposit them directly in the emergency fund. Keep in mind that the emergency fund should be such a fund that you can use immediately when needed. It should not happen that you take time to access the money lying in the emergency fund.