Friday, July 15, 2011

Emergency fund

Horlic investment is also one of the blogs i follow frequently.
One of the latest article is about emergency fund.
It's a good read and what we should have in mind since >90% of us are employees.

Here is the link.

Basically its about how much we should have as a contingency.
What if I lose my job today?
How long can i survive till i find my next job?
Do i have any monthly commitments?
Car/house loan installment, electric/water/phone bills?
Am i the sole breadwinner of the house?
How many people depend on me financially?

Source


The answer kind of varies with each person I guess. What I think is we need a minimum 3 months of our monthly expenditure at least. In the best case, we should have about half a year of our monthly expenditure handy as a contingency or so-called emergency fund. Think about a plan that will work comfortably for us individually.

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