An emergency fund is money kept aside for unexpected events — job loss, medical emergency, car breakdown, or family crisis.
Salaried: 6 months expenses. Self-employed: 9-12 months. Keep in savings (30%), liquid fund (50%), short FD (20%).
Emergency Fund — How Much You Need and Where to Keep It
BG
Bhaskar G
Financial Planner & Insurance Advisor
Last Updated
Aug 14, 2026
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📐 Methodology & Sources
All calculations use standard financial formulas. SIP returns use compound interest formula: FV = PMT × [((1+r)^n - 1) / r]. EMI uses: EMI = P × r × (1+r)^n / [(1+r)^n - 1]. Tax calculations follow Income Tax Act provisions for the current assessment year. Insurance premiums are indicative market averages.
Sources: RBI, SEBI, Income Tax Department of India, CIBIL, IRDA, LIC of India. Data verified as of Aug 2026.
BG
Written By
Bhaskar G
Financial Planner & Licensed Insurance Advisor with expertise in life insurance, mutual funds, tax planning, and retirement strategies. Helping individuals make informed financial decisions.
⚠️ Disclaimer: This article is for educational purposes only and does not constitute financial advice. Past returns do not guarantee future performance. Please consult a qualified financial advisor before making investment decisions. Calculations are approximate and may vary based on actual market conditions.
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