The 6X Emergency Fund Investing of your income future expenses(sinking fund),retirement fund),short term fund or passive income.within this category ,its wise to set aside 3-5% as an emergency fund .This fund facts as a financial safety
net ,protecting you from unexpected expenses like medical emergencies or urgent home repair.The remaining portion of this 10% should be invest in reliable option
such as index funds,which offer a balanced and diversified approach to growing your wealth over time.smart investing can help you build a secure financial future
and achive your long term goals Or people should always put at least six times their monthy income in emergency fund.
For Example, If your monthly expenses are 2 lakh,you should park 12 lakh in your bank account to take care of ufavourable circumstances.
FAQs About 6x emergency fund in india
How much emergency fund should I have in India?
A double-income family with monthly expenses of ₹50,000 should aim for an emergency fund of at least six months’ expenses (₹3 lakh). Example 2: On the other hand, a single-income family with the same expenses may need 10-12 months’ worth (₹5 – ₹6 lakh) to ensure financial stability.
Where should your emergency fund be kept?
The best accounts for emergency funds are high-yield savings accounts or money market accounts that offer high interest rates and no maintenance or minimum balance fees. Since they have competitive rates and low fees, online banks can be a good choice for your emergency fund.
Where can I park my emergency fund in India?
Emergency fund should be kept in liquid avenues such as fixed deposits, liquid funds and overnight funds. While fixed deposits can be accessed in hours, some liquid funds offer instant credit of redemptions subject to conditions. Avoid investing your emergency fund in stocks or equity funds.
Conclusion
The 6X Emergency Fund Investing of your income future expenses(sinking fund),retirement fund),short term fund or passive income.within this category ,its wise to set aside 3-5% as an emergency fund .This fund facts as a financial safety
net ,protecting you from unexpected expenses like medical emergencies or urgent home repair.The remaining portion of this 10% should be invest in reliable option
such as index funds,which offer a balanced and diversified approach to growing your wealth over time.smart investing can help you build a secure financial future
and achive your long term goals