Financial Wellbeing #2 : Build an Emergency Fund

💰 RRR Financial Wellbeing 

Welcome back to the 💰 RRR Financial Wellbeing Series—our 9-Point Action Plan for Financial Wellbeing.

In Action Plan #1, we learned the importance of saving before spending. The next step towards financial wellbeing is building a strong financial safety net that protects you when life takes an unexpected turn.

Action Plan #2. Build an Emergency Fund

Emergencies don’t send a calendar invite.

A job loss, medical emergency, pandemic, or unexpected expense can happen anytime. That’s why every working professional should keep 3–6 months of expenses as an emergency fund.

Example:

If your monthly expenses are ₹25,000, your emergency fund should ideally be:

Minimum: ₹75,000 (3 months)

Ideal: ₹1.5 lakh (6 months)

Where can you keep it?

🏦 Fixed Deposits (FDs)

💧 Liquid Mutual Funds

These options provide liquidity and relatively lower risk.

Also remember:

🛡️ Take a term insurance policy of about 100× your monthly income. If your salary is ₹25,000, a ₹25 lakh cover is a practical starting point.

🏥 Buy a separate health insurance policy even if your employer provides one.

❌ Avoid endowment or whole-life policies when you are young and starting out.

The current economic environment is unpredictable. Medical costs are rising, layoffs can happen unexpectedly, and financial stability matters more than ever.

Start small. Build consistently. Your future self will thank you.

Take the Step Today

An emergency fund isn’t an investment for earning higher returns—it’s your financial cushion during life’s unexpected moments.

Book a Financial Wellbeing Discussion with RRR Tejas and let us help you build an emergency fund and financial protection plan that keeps you prepared for whatever comes next.

Disclosure: https://rrrtejas.in/disclosure/

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