No emergency comes with any notice. We may have to face any kind of emergency in the future. In such a situation, we have to be fully prepared for a situation like an emergency.

We have to prepare a thick fund so that there is no shortage of money in an emergency.

How to prepare an emergency fund?

Saving is very important for you to create an emergency fund. If you want to prepare an emergency fund, then definitely adopt the methods mentioned below.

First of all, you have to prepare a budget for the income and expenses you get every month.

Through this, it can be found out how much money you will be able to save.

With these savings, you will also have to keep a fund for emergencies.

You can also invest this money somewhere. However, keep in mind that.

The investment platform should be such that where you can withdraw money without any hassle.

How much amount is necessary?

The amount fixed for emergencies depends on your salary. Along with this, how much money is saved from the salary? It is said that a person should keep an emergency fund equal to 3 to 6 months of expenses.

For example, if you spend Rs 30,000 every month, then you should keep at least Rs 90,000 for emergencies. Similarly, if the salary is Rs 50,000 and Rs 20,000 is spent. Then keep at least Rs 60,000 for emergency.

In simple words, you have to multiply the expenses of one month by 3 or 6.

Emergency fund = Expenses made in a month x 3 or Expenses of one month x 6

Why is an emergency fund necessary?

We may have to face any kind of emergency in the future. It is important to always be prepared for such times. Emergency fund enables us to deal with any financial problem that may arise in the future.

You can prepare an emergency fund even with a small amount. This fund depends on your salary. But always keep some part of your salary for the time of emergency.

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